Bank of America analyst Shaun C. Kelley sized up the online sports betting and iGaming segment after several states reported March figures and market share leaders.
The Analyst Takeaways: For the states that reported March figures, online sports betting handle was up 478% year-over-year and 14% month-over-month and iGaming revenue was up 250% year-over-year and 22% month-over-month.
“While we expected strong growth M/M in OSB with the start of March Madness, iGaming outpaced our expectations with record highs in all states where legal. Run-rating March’s iGaming GGR would represent a $3.7 billion market annually,” Kelley said.
The run-rate could be higher than the land-based commercial gaming market in every state except for Nevada. The market size would also be ahead of the 2024 target set by the analyst.
“We expect investor interest to remain piqued around iGaming growth, continued deal-making and legislative action.”
Related Link: Michigan Online Sports Betting March Figures Show Strength For Several Players And One Surprising Decliner
Sports Betting Stocks: Penn National Gaming, Inc. PENN and the Barstool Sportsbook was a notable decliner according to the analyst.
“iGaming in Michigan slipped from an impressive 7% debut in February to 4%,” Kelley said.
Online sports betting market share fell in both Pennsylvania and Michigan for the month of March compared to February for the company.
The analyst called the results disappointing but said the company has strong marketing and product improvements coming that could help it rebound.
BetMGM, a joint venture from Entain ADR GMVHY and MGM Resorts International MGM, is mentioned by Kelley as a winner with market share taken from rivals in the online gaming segment. BetMGM held a No. 1 or No. 2 market share in Colorado, Tennessee and Michigan.
In March, the company had a 30% iGaming market share in New Jersey and Michigan.
Draftkings Inc DKNG maintained a strong market share. The analyst expects the company to achieve its goal of 20% to 30% market share in online sports betting and 15% to 20% in iGaming.
(Photo: DraftKings)
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