DraftKings and FanDuel expected to dominate Michigan
To no great surprise, DraftKings and FanDuel are being predicted as the early winners in Michigan in the battle for market share.
DraftKings and FanDuel are expected to take 30% market share in newly-regulated Michigan.
This is according to a recent forecast by analysts at Bank of America.
Barstool and BetMGM are expected to complete the leading quartet of betting brands in the state with 10-15% share.
Online betting handle is expected to reach $50m in January, BofA said.
Operators will rely on marketing, promotions and performance marketing as the main customer acquisition channels.
Analysts at Oppenheimer picked out PointsBet’s two ‘Risk-Free’ bets up to $1,500 or four up to $1,000 for new customers as the most aggressive promotion so far in the space.
Michigan went live with online betting and gaming on Friday. With 10 licensed operators launched the state is expected to be highly competitive right from the start.
Other regulated states have seen staggered launches by operators.
The state is already performing strongly.
With a relatively low tax rate of 8.4% Michigan has gone from 11th to 2nd position on the Wedge Index of gaming-friendliness.
Oppenheimer noted that Michigan should “offer unique insight into future competitive dynamics as it is the first time that all key players are entering the market simultaneously”.
The firm added that market share for online casino should be more spread out.
It suggested MGM could potentially outperform given its brick and mortar casino database and brand.
Shares of DraftKings were up 4.8% and Penn National Gaming was up 2% at the markets opened Tuesday.
Neutral to buy for DK and FD
Goldman Sachs also upgraded DraftKings to a buy rating from neutral.
The firm reiterated its buy rating for Penn National Gaming. It said the casino group could now “factor in embedded value from Barstool” and its well-known CEO Dave Portnoy.
Other Michigan players include BetRivers, Golden Nugget, William Hill, Wynn Resorts and BetAmerica.
FoxBet and Parx are also expected to enter the market.