69 Mobile Sports Betting Continues To Grow And Consolidate In The US Thanks to legalization and consumer adoption, the winners in online sports betting are pulling away from the pack. As online sports betting surged 35% during 2023, DraftKings and FanDuel offered superior user experiences that helped take share from other sportsbooks. DraftKings and FanDuel grew their share of national deposits to 75% in 2023, while the long tail of sportsbooks lost 8 percentage points of share. US Online Sports Betting Volume National Deposit Market Share S Legalized States (LHS) Future Legalizations (LHS) DraftKings and FanDuel All Other Sportsbooks R E Online Penetration (RHS) M U S $500 100% 100% N CO L $400 80% A T 22% 75% e I e G CAGR m har DI u ns $300 l S 60% io l Vo k il 50% o B al o t b $ $200 o s 40% T t 124% r f o o p CAGR 25% S $100 % 20% $- 0% 0% 1 1 1 1 2 2 2 2 3 3 3 3 2018 '19 '20 '21 '22 '23E '24E '25E '26E '27E '28E '29E '30E 0 0 0 0 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 - - - - - - - - - - - - - - - - r l t r l t r l t n r l t n Ju n Ju n Ju Ja Ap Ju Oc Ja Ap Oc Ja Ap Oc Ja Ap Oc Sources: ARK Investment Management LLC, 2024. This ARK analysis is based on a range of underlying data from external sources, including Yipit Data, which may be provided upon request. Forecasts are inherently limited and cannot be relied upon. For informational purposes only and should not be considered investment advice or a recommendation to buy, sell, or hold any particular security. Past performance is not indicative of future results.