A rising interest in in-play betting could be an advantage for DraftKings, according to a Jefferies Equities Research survey published June 11.
Jefferies surveyed 768 U.S. adults aged 18-44, 509 of whom reported they had participated in online sports betting at least once. Survey analysts, led by David Katz, wrote that those 509 respondents made up a fairly accurate representation of the broader U.S. online sports betting total addressable market (TAM).
The survey found that about 80% of players have tried in-play betting at least once. Although only about 15% of respondents said they consider in-play their most popular choice, 92% reported feeling that more in-play betting opportunities would improve their experience.
“Just as important, if not moreso than the hardcore in-play crowd, is the ‘in-play curious’ group … We believe that this demo is critical for DKNG and other operators to focus on, as it represents a large potential growth segment,” the analysts wrote.
Jefferies analysts measured player engagement with in-play betting by looking at how often players checked odds progression. The result showed that over 95% of players checked odds or considered placing a bet in-game.
DraftKings a favorite, analysts bullish on stock
The survey showed 32% of those polled rated DraftKings as the platform they use most frequently, followed by FanDuel at 20%. The analysts wrote that is a surprising shift from last year, and may be a result of the rising interest in in-play betting.
“We believe that the OSB names in general, and DKNG specifically, have taken several hits as of late,” the analysts reported.
Jefferies analysts remain bullish on DraftKings and predict it will be a leader in in-play betting after its 2024 acquisition of SimpleBet, which specializes in in-game betting and micromarkets.
Of note is that the survey revealed a significant decline in bettors who favor football for in-game betting — 24% of respondents said they favored football vs. 40% in previous years. The numbers rose against previous years for basketball — 24% — and baseball — 15%.
Analysts also found that average handle per player grew in the lower-bet and higher-bet categories, but dropped in the middle over the past year. Most players bet between $51-$250 per year.
Other key takeaways
- Respondents were split 46% female and 54% male, which analysts wrote “skews more female than consensus expectations.”
- The income breakdown for respondents was 40% in the $50,000-$125,000 range, 36% below $50,000, and 24% above $125,000.
- While DraftKings and FanDuel are leaders to the question “Which sportsbook do you you use most frequently?” 13% of respondents selected BetMGM, 12% Fanatics Sportsbook, and 9% apiece for Caesars Sportsbook and ESPN Bet.
- Unsurprisingly, the vast majority — 58% of respondents — said their preferred betting method was parlays, with 30% indicating multi-game parlays were their favorite and 28% indicating single-game parlays.
