DraftKings Leads Bank Sports Betting Survey, ESPN Bet Surprises

Users favor DraftKings (NASDAQ: DKNG), according to a recent Truist Securities survey on consumers' iGaming and online sports betting preferences.

With an estimated 70% market share, DraftKings and Flutter Entertainment's (NYSE: FLUT) FanDuel have established an enviable duopoly in the US sports betting industry. But in iGaming, DraftKings has taken the lead. According to Truist's research, 61% of people who use both mobile apps say they prefer DraftKings over FanDuel, and 29% say they use DraftKings more than FanDuel.

"Reasons for that preference were generally mixed, leading us to believe the consumer generally views the two as largely equal today,” observed Truist analyst Barry Jonas.

FanDuel and DraftKings are two of the most well-known and valued gaming companies, but according to Jonas, the former is more likely to win a marketing battle, even though the two can work together in the iGaming and sports betting space.

ESPN Bet has good news

Penn Entertainment's (NASDAQ: PENN) ESPN Bet performed well in the Truist survey despite being less than six months old.

“(That) reinforces our belief in its potential to succeed longer term,” added Jonas. “Consumer-health responses were about what we expected, as a more expensive cost of living seems to be having a moderate impact” on ESPN Bet users’ betting frequency.

That might ease worries about the app's capacity to overtake established industry leaders like DraftKings and FanDuel. According to some analysts, ESPN Bet can increase its market share in states where it enters the market alongside rivals rather than entering markets after they have already been established.

According to a Truist study, 64% of respondents stated they would like to see the app improve its integration for betting reasons beyond the lines that are already provided, and 44% of respondents stated ESPN Bet is their favorite place to monitor scores. An additional 52% of respondents informed the research firm that they see ESPN Bet as their preferred mobile betting app in the future.

Crucial Parlays for Operators

It should come as no surprise that parlays are becoming increasingly important for casino operators because to their high profitability and margin-boosting nature. 75% of respondents to the Truist survey stated that they mainly bet parlays, which is good news for gaming companies.

Nonetheless, 20% reported using these bets more frequently, while 39% stated they are using them less. Neither reducing nor increasing their use of parlays are the remaining 41%.

In terms of iGaming, DraftKings led the Truist poll with 27%, followed by FanDuel with 18% and BetMGM with 14%. Caesars Entertainment's (NASDAQ: CZR) 15% consumer preference across its sports betting and iGaming apps is a positive indication.

“A positive proof point for the rollout of its dual strategy … A majority of players (62%) stated they prefer to play icasino on the same platform they sports bet, speaking to the importance of cross-selling and retention,” concluded Jonas.