March Madness Drives 559% Surge In Sports Betting App Downloads

The U.S. online sports betting market is booming, and the March Madness NCAA basketball tournament was a key catalyst for a 559% surge in sports betting app downloads in March.

March Madness Bump: Bank of America analyst Shaun Kelley said March Madness coupled with easy year-over-year comps due to 2020 sports cancellations resulted in sports app downloads increasing more than fivefold year-over-year in March.

Downloads dropped by 41% compared to February, but Kelley said that drop is simply due to large January and February launches in Michigan and Virginia, as well as the end of football season.

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Market Leaders: Year-to-date in 2021, Flutter Entmt ADR (OTC: PDYPY) subsidiary FanDuel has been the U.S. sports betting app market share leader with 36% of downloads. DraftKings Inc (NASDAQ: DKNG) is a distant second with 28% market share followed by MGM Resorts International (NYSE: MGM) with 12% share.

Kelley said Penn National Gaming, Inc (NASDAQ: PENN) subsidiary Barstool Sportsbook is also getting a respectable market share in the high single digits despite its limited geographical footprint. Kelley expects Barstool will continue to gain market share as its app launches in additional states throughout the year.

“Our industry conversations indicate strong volumes for March which we believe this data corroborates, although we will get a clearer view as states release revenue reports in the coming weeks,” Kelley wrote in a note.

Benzinga’s Take: The competition in the fledgling online sports betting market is fierce at this point as additional states legalize sports betting apps. Americans bet an estimated $35 billion on sports in 2020, and investors see a potential massive long-term growth outlook in the space.