The long-running pecking order in US online sports betting may no longer hold. DraftKings chief executive Jason Robins told investors last week that his company was essentially level with FanDuel for first place this quarter, and the numbers back him up.
DraftKings reported roughly $13.9 billion in sports consumer volume for the three months to September 30. That figure combines its sportsbook and prediction market, and sports revenue came in at $783.6 million. FanDuel’s parent, Flutter, reported about $12 billion in US sportsbook handle and around $1 billion in sportsbook revenue, plus $119 million of trading volume on FanDuel Predicts.
State-level data points the same way. Analysts at Citizens put DraftKings’ September handle share across 13 states and Washington DC at 37.4%, with a 35.8% share of gross gaming revenue. FanDuel held 34.2% and 34.9%. DraftKings led in about a dozen states, including Oregon, where it is the only operator. Ohio shows how tight it is. FanDuel took $320.5 million in September bets against DraftKings’ $306.9 million, but DraftKings grew revenue 33% to $28.8 million while FanDuel’s fell about 12% to $28.9 million, leaving a gap of roughly $104,000.
Neither company intends to coast. Flutter’s new chief executive, Dan Taylor, who has been in the role just over a month, said his first priority is building on the group’s US leadership position and that more generous offers helped win share in August and September. FanDuel has since added a rewards scheme and bet sharing, and it now runs a single app covering sportsbook and prediction products, as DraftKings does.
The bigger spending story is prediction markets. Kalshi and Polymarket control around 85% of that sector, according to Aldrin Research. Robins says DraftKings is already the third-largest exchange operator in the US and plans to invest more. Citizens analysts argue it will have to match rivals’ marketing to compete, with Kalshi rumoured to have spent about $2 billion on marketing this year and Polymarket about $1 billion.
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That investment has a visible cost. DraftKings now expects 2026 adjusted EBITDA of $175 million to $275 million, with prediction market outlay holding back overall earnings, while its core business should deliver $875 million to $925 million. Taylor’s shareholder letter said prediction markets have not taken much sportsbook business from FanDuel but are pushing up marketing costs. Robins insisted DraftKings is not giving ground anywhere and remains focused on its core.
Operators have also pulled back on promotions in some places. In Ohio, FanDuel and DraftKings cut combined September promotional spending by nearly 29% to $23.5 million, while smaller rivals raised theirs.
The takeaway for bettors and the wider industry is that the top two are fighting on two fronts at once: a state-licensed sportsbook race that is now a dead heat, and a federally regulated exchange market where both are the challengers.