Expert: FanDuel and DraftKings Will Own 75% Of KY Sports Betting

Written By Steve Schult on June 21, 2023
expert says FanDuel and DraftKings get 75% of Kentucky market, from playkentucky.com

FanDuel and DraftKings dominate the sports betting market in most states. One of the foremost gaming industry experts in the nation believes the trend will continue in Kentucky.

Eilers & Krejcik Gaming analysts said the two companies will gather three-fourths of the Kentucky sports betting industry.

In a summary provided to PlayKentucky, analysts cited the betting behemoths’ deep pockets and name recognition as the cause.

“FanDuel and DraftKings capture ~75% combined [gross gaming revenue] share in Y1,” EKG analysts wrote. “Given their clear advance marketing advantage and willingness to spend aggressively on [user acquisition].”

FanDuel and DraftKings don’t have a home in Kentucky … yet

Everyone familiar with sports betting expects FanDuel Kentucky and DraftKings Kentucky sportsbooks. However, the two sports betting giants have yet to announce a partnership with an existing racetrack.

The partnership is the only way for these two sportsbooks to be available in the Bluegrass State.

At the end of March, Gov. Andy Beshear signed HB 551, which legalized retail and online sports betting. The bill stated the state’s nine horse tracks and the Kentucky Speedway are the only 10 venues eligible to open a brick-and-mortar sportsbook. Those venues can partner with up to three companies for online sports betting operations.

Currently, Caesars Entertainment is the only company with a sports betting partnership. Caesars partnered with Keeneland and Red Mile over a month ago.

The move secured a Caesars Sportsbook Kentucky product will be available when sports betting launches in Kentucky.

Nobody envisions a world where FanDuel and DraftKings aren’t available in Kentucky. But it’s noteworthy that the two largest companies haven’t announced a deal with a venue yet.

Expect at least one of the two to partner with Churchill Downs Inc.

At least one of the two companies will likely end up with the coveted Churchill Downs Inc. partnership.

CDI owns four of the nine horse tracks, including Churchill Downs in Louisville. The company’s flagship horse track is the Kentucky Derby’s home and the state’s largest horse track.

Both companies have deals in place with CDI for horse racing. Therefore, it’s reasonable for the largest player in the Kentucky horse racing industry to partner with at least one of the two largest online sportsbooks.

It’s even possible they establish deals with both companies, since the company’s four venues can each partner with up to three online sportsbooks.

But Churchill Downs is undergoing a public relations nightmare on its horse racing front. Leading up to and immediately after the Kentucky Derby, several thoroughbreds were injured and died on the track.

Thus, announcing a sports betting partnership might not be in its best interest until its horse racing problem is “fixed.”

Two companies will gross nearly $109 million if estimates are correct

If the EKG analysts are right, FanDuel and DraftKings could generate $108.9 million in gross sports betting revenue in Kentucky.

Beshear touts estimates of about $23 million in new annual tax revenue from sports betting. That translates into a handle of about $2.13 billion and $145.26 million worth of online sports betting revenue.

If FanDuel and DraftKings get 75% of that, it’s worth nearly $109 million.

Photo by Shutterstock
Steve Schult Avatar
Written by
Steve Schult

The Managing Editor of PlayKentucky, Steve Schult is a veteran of the gambling industry with more than a decade of experience covering the space. After earning his journalism degree from Marist College, the New York native began covering high-stakes poker tournaments and the U.S. gambling industry for various outlets. Following stints as a writer for Card Player Media, Bluff Magazine and the World Series of Poker, Schult joined Catena Media and has managed coverage for a handful of states.

View all posts by Steve Schult