ESPN Bet, Fanatics Making Inroads with Key Demographics

Posted on: December 4, 2024, 04:55h. 

Last updated on: December 8, 2024, 10:21h.

Todd Shriber @etfgodfather Read More
Expertise: Financial, Gaming Business, Mergers and Acquisitions.

DraftKings and FanDuel are the giants in the US online sports betting market, amounting to a duopoly that controls more than 70% of total wagers, but some rivals are making inroads among key segments.

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Bettors at a sportsbook. A new Morgan Stanley report says young bettors are driving sports betting industry growth. (Image: Getty)

In Morgan Stanley’s recently released third biannual sports betting survey, the investment bank noted Penn Entertainment’s ESPN Bet is a hit among bettors in the 21 to 34 age group. Morgan Stanley surveyed 3,000 sports bettors across various age and other demographic factors, finding that ESPN Bet had the highest percentage of users in the 21-34 cohort at 44%, narrowly edging bet365 at 43%.

At the other end of the age spectrum, BetMGM and Caesars Sportsbook are popular with baby boomers, which Morgan Stanley noted is the result of those operators tying their online sports wagering offerings to land-based casinos. Clients of both sportsbooks can earn tier credits and points in the companies’ rewards programs — among the industry’s largest — that can be redeemed at brick-and-mortar properties.

Why Younger Bettors Are Prized

The industry has made no secret about its desire to bring more young bettors into the fold and much of its marketing is geared toward the 21-34 age group. There are valid reasons for that approach.

Sixty percent of bettors in the 21-34 cohort place at least three sports wagers per week, well ahead of the 47% average for all age groups, according to Morgan Stanley. The bank also pointed out that 21 to 34-year-olds have larger average bet sizes — $58 compared to $49.50 overall. Baby boomers are the most reserved, averaging $31 per sports bet.

Another reason younger bettors are prized by the industry is their proclivity for parlays, including those of the same-game variety. Approximately 60% of 21 to 34-year-olds polled by Morgan Stanley said parlays or same-game parlays are their favorite type of wager.

The bank said the high hold percentages on parlays bode well for the long-term trajectory of the industry, so much so that operators should consider marketing those wagers to a broader group beyond younger bettors.

Women Bettors on the Rise

Women are increasingly getting into sports betting and that’s good news for Fanatics because that operator has 39% share among females, just ahead of Caesars Sportsbook at 38%, according to Morgan Stanley. The bank added women represent 22% of both DraftKings’ and FanDuel’s client bases.

Women now account for nearly a third of the overall domestic sports betting market and their average bet size of $51.10 is slightly ahead of the $48.60 average for men, noted Morgan Stanley.

Regarding Fanatics gaining share among female bettors, that news drew derision on social media platforms with some bettors alleging those accounts are being set up by the female significant others of men that have seen their bet sizes limited by the operator. In fairness to Fanatics, it’s one of many sportsbooks that have been accused of limiting winning bettors.