The Rise of Mobile Sportsbooks (DraftKings/FanDuel Duopoly)

The **DraftKings and FanDuel Duopoly** represents the consolidation of the U.S. sports betting market, where these two operators control approximately **70–80%** of market share. Their dominance is rooted in their origins as **Daily Fantasy Sports (DFS)** companies, which allowed them to build massive user databases and brand equity under the UIGEA loophole (2006–2018) before sports betting was federally legalized. Key drivers of their success include: 1. **The Failed 2017 Merger:** The FTC's blocking of their merger forced them to compete, driving rapid product innovation. 2. **Technological Sovereignty:** FanDuel leveraged **Flutter Entertainment's** global stack to pioneer high-margin **Same Game Parlays (SGPs)**, while DraftKings acquired **SBTech** to vertically integrate and eliminate third-party vendor fees. 3. **Economic Moats:** Their ability to convert DFS players to sports bettors resulted in significantly lower **Customer Acquisition Costs (CAC)** compared to legacy casino brands (BetMGM, Caesars), creating a barrier to entry that has forced many smaller operators to exit the market.