Sports Betting Market: CAC
The customer acquisition costs for FanDuel and 32Red are $68 and $245.7, respectively. Below is a deep dive into our relevant findings, as well as our research strategy to explain why the requested information could not be obtained.
RELEVANT INSIGHTS ON CUSTOMER ACQUISITION COST FOR THE SPORTS BETTING MARKET
- FanDuel is a sports betting company, and its customer acquisition cost is $68 with $20 million TV ad spend.
- In the United States, the customer acquisition cost for an online casino player is more than $500.
- In 2015, 32Red customer acquisition cost was £197 ($245.7).
- In 2018, the customer acquisition cost of William Hill increased by 10% due to an increase in online marketing spend by 14% to £138.7 million.
- In 2019, it is estimated that in the United States, ad spend in the sports betting market will reach $7 billion.
- According to Gambling Sites, sports betting is the most popular type of gambling.
- Gambling ad spend was $253.2 million in Australia in 2017.
- In Europe, the different modes of gambling advertising spending include:
- TV gambling advertising: £234million ($291.8 million)
- Direct online internet advertising costs: £747million ($931.6 million)
- Social media: £149million ($185.8 million)
- Sponsorship: £60million ($74.8 million)
- The marketing expense for 888 holdings, a top sporting betting company, was $155 million for FY 2018.
- The top 10 sports betting companies across the globe include 888 Holdings, GVC Holdings, Kindred Group, Paddy Power Betfair, William Hill, Bet365, Stars Group, Draft Kings, Betsson, and BetAmerica.
- The Asia Pacific region accounts for 47% of the world’s sports wagers.
- Of all sports, soccer has the highest betting volume.
- In the US, 50% of the population claimed that there were involved in sports betting at least once.
- The global sports betting market size was around $104.31 billion in 2017 and is anticipated to reach $155.49 billion by 2024, with a CAGR of 8.83%.
To provide the average customer acquisition cost for a sports betting company, we first scoured through global sports betting market reports and other articles relevant to CAC across various websites such as PR Newswire, GlobeNewswire, Mordor Intelligence, GlobalData, Markets and Markets, Forbes, DemandJump, and others. This search yielded information on market size, CAGR, and the CAC of other industries but nothing specific to sports betting to derive further.
Next, we took different approach and tried looking for the key players of the sports betting industry such as 888 Holdings, GVC Holdings, Kindred Group, Paddy Power Betfair, William Hill, Bet365, Stars Group, Draft Kings, Betsson, and BetAmerica with an aim of identifying the customer acquisition costs for the different companies and then calculating the average to arrive at the customer acquisition cost for a sports betting company but most of the information is limited to marketing expenses. There is no specific information on CAC or the total number of customers to calculate the average CAC.
Further, we tried looking for information on the customer acquisition cost for a sports betting company in various geographies with a motto of calculating the average customer acquisition cost for a sports betting company in general in websites such as Responsible Gambling, Online Gambling, Chalkline Sports, Sports Betting Dime, etc. This strategy did not yield anything specific to customer acquisition cost for a sports betting company, geography wise.
Later, we searched for the information on the customer acquisition cost for a sports betting company by sports types such as Football, Casino, Cricket, Poker, etc. in websites such as ESPN, Opta Sports, FanDuel, Oaklins, Betrader, etc. We wanted to calculate the average customer acquisition cost for a sports betting company with the ratio of the market share of sports betting by sport, but we could not locate any sport-specific CAC or market share to derive further as most of the information is on ports betting companies with different sports betting.
As a last resort, we expanded the scope of our research and tried looking for information on customer acquisition cost for a sports betting company beyond standard timeline of 24 months in websites such as NextBigWhat, GodzFortune, The Motley Fool, Morning Star, Sharecast, Technavio, and others with an aim of calculating current customer acquisition costs for a sports betting company by calculating the CAGR. We could only locate minimal insights on CAC for some companies which are not suitable to calculate current customer acquisition cost for a sports betting company with a global scope.
As all the above strategies failed to derive at customer acquisition cost for a sports betting company, we have concluded that the information is not available and there's limited data to triangulate any further.