FanDuel CMO: 'I Think We Will Be Significant in PA'
Sitting down with Gambling.com recently, FanDuel CMO Mike Raffensperger says he hopes to duplicate the success his company had in neighboring New Jersey and believes this is entirely possible.
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"I think we will be the significant market leader in Pennsylvania for some time to come," FanDuel chief marketing officer Mike Raffensperger told Gambling.com.
The playing ground will likely be far more equal now that the likes of FanDuel and Draftkings won't catch other betting firms off guard. Already, Rush Street Interactive and Kambi appear to have a significant enough foothold in the PA market.
Where FanDuel hopes to gain dominance is the Philadelphia area, which Raffensperger sees as an extension to the New Jersey market.
“First and foremost, Philadelphia is one of the great American cities. It also happens to be one of the best sports town in the country,” Raffensperger said. “That part is amazing and super-exciting. But just given the geographic nature of where it is, if you actually just look at the media market, the Philadelphia (designated market area), 35 percent of that DMA is actually in New Jersey.”
There is, however, a downside to operating in Pennsylvania.
Brendan Bussmann, a gambling industry analyst and partner at Global Market Advisors, tells Gambling.com:
"Pennsylvania is a difficult market for any operators because of its high tax rate."
That's a 36% tax rate compared to the nearly 13% tax companies pay in New Jersey to operate via mobile devices (around 10% for retail).
But Bussmann acknowleges the advantage that a company like FanDuel does have.
"FanDuel has the opportunity to move the needle because of its brand ID and established customer base from their fantasy product and existing product in the New Jersey market that has been serving Pennsylvania customers already."
- Aaron Goldstein, Gambling911.com
