According to a new YouGov study, the US sports betting industry is booming with the emergence of many sportsbooks.
YouGov’s survey showed that DraftKings, FanDuel and other sportsbooks are the favorites of older players. Bet365, however, is the most popular sportsbook for those between 21 and 24 years old.
FanDuel, DraftKings and DraftKings were ranked below it as the best sportsbook in the age groups 21-24. In the previous month, 31% of the 21-24 year olds surveyed had placed bets with Bet365.
Only 14 % of those aged 21-24 were considered to be potential punters. Bet365 will therefore continue to expand its market share among younger customers thanks to the investment made in the US. Bet365 is the US’s most popular sportsbook, with 60% of all sports betting customers reporting that they use it more than any other sportsbook.
Take it Slow Working for Bet365
Bet365’s 2022-23 fiscal year saw a loss of PS61.2m. The company has also seen significant growth in revenue, as sports betting and gaming revenues grew 18.9%, to PS3,39bn. Denise Coates, Bet365 CEO highlighted the company’s increasing US presence. Bet365 launched in several US states in the period under review.
Ed Birkin is a senior analyst with H2 Gambling Capital. He stated that he believed, at the time the results were released, Bet365’s US long-term strategy could be fruitful.
Birkin said iGB that “their positioning on the US market is of most interest for me.” Bet365 has always been patient and long-term oriented, unlike other operators who rushed to enter the US market for sports betting and have already left it – Kindred Pointsbet, Wynn, among others.
They have not suffered the massive cash outflows other companies have experienced over the last few years when they first fought for market share.
New brands gain momentum in US
Since the Professional and Amateur Sports Protection Act of 1992 (PASPA), which was repealed in 2018, DraftKings and FanDuel dominate the US Sports Betting scene. The YouGov study found that new sportsbooks were growing.
YouGov discovered that while DraftKings and Bet365 were the most popular sportsbooks among US bettors in general, younger sports bettors are more inclined to try out other sportsbooks. On average, those between 25 and 44 use three different sportsbooks.
There is therefore opportunity for websites such as 888 Sports and ESPN Bet. The latter was launched by Penn Entertainment in November, as a result of a partnership of $1.5bn.
In terms of trends, 58% more sports bettors are using 888 Sport than before. In contrast, 51% of sports bettors were using ESPN Bet to place more wagers. ESPN Bet was ranked among the top five sites for all age groups despite its recent launch.
FanDuel was also used by 40% more than before, while 23% said that they had reduced their usage.
The older age groups were more loyal, despite the fact that younger demographics are branching out. Only 25% of people aged 55 or older use three sportsbooks. DraftKings ranked as the top sportsbook amongst those 35 years and older. FanDuel was a close second.
YouGov reveals that sign-up incentives are crucial for customer acquisition
Current bettors were most attracted to a “good welcome” offer when creating a new betting account. Over half of those surveyed (55%), said that it was one of their top factors in choosing a sportsbook.
A 53% of the bettors cited that promotions and offers after signing up was a major factor. This is compared with good customer service and a recommendation from family or friends, both which 37% of them cite as reasons to open a new betting account.
While 33% wanted to have a better experience on the site or application, 28% pointed out that advertising was a factor in launching a new account.
Welcome offers were again the top choice for prospective punters. 49% of people who plan to place bets in the coming 12 months said that it was the main factor behind their decision to sign up with a sportsbook.
The ability to stream sport while betting is key
In the future, sportsbooks will be able to attract more customers by offering live streaming of sports.
Sixty-three percent of respondents said that live streaming would increase their likelihood to download an app.
In the age range of 25 to 34, 40% said they are interested in watching live events on sportsbook apps.
This attraction is significantly reduced for the older age groups. Only 11% of people aged 55 or older said that they are very interested in watching live streams on a sportbook, while another 32% were neither interested nor uninterested.
ESPN Bet could benefit from the appeal of streaming while gambling to young demographics.
ESPN has the most popular sports brand in America. Its ESPN+ service, which offers 25 million subscribers, is well-known to 74% of sports bettors. FanDuel TV, DraftKings Network and DraftKings Network were only known to 45% of sports bettors and 44% by current users.
YouGov said that the level of awareness about ESPN’s streaming services positions ESPN Bet to “sustained” growth, with more bettors likely to choose a betting application linked with streaming service.
Detail of the Poll
YouGov conducted a survey in January of over 2,000 US sports bettors who either had placed sports wagers within the last 12 months, or hadn’t made any sports wagers but planned to over the coming 12 months.
71% of respondents to the survey currently bet on sport, and 29% plan to. YouGov wanted to know which sportsbooks are popular and with what age group, along with what features bettors value most. The survey also aimed to increase understanding about the future of sports betting innovations.
In the survey, 65% of users aged 25 to 44 were identified. At the same time, 54% prospective bettors also fell into this age group.
Men dominate the current betting population. Men surveyed had wagered 72% in the past 12 months, compared with 28% for women. In contrast, only 43% of women were considered to be potential gamblers.
