DraftKings celebrates expansions with share growth
By Robert Davis
22:41, 30 August 2021
Despite underperforming on the markets on Monday, 30 August, shares of fantasy sports app DraftKings are up nearly 10% over the past week as the company expands into new markets.
Last Thursday, DraftKings earned the approval of Oregon’s Lottery Commission to operate as the state’s sole sportsbook.
By Saturday, DraftKings also took its sportsbook live in Arizona, just a few months after lawmakers expanded the state’s gaming laws earlier this year.
Shares of DraftKings finished the last trading week at $60.01 per-share before falling slightly to $59.25 during Monday’s trading session.
Lone operator
Oregon is what’s known as a “sole proprietor” state, meaning only one gambling entity can operate in the state at a time. DraftKings will replace the state’s SBTech platform, which some users called unreliable.
DraftKings also uses SBTech, but the new system will utilize DraftKings’ platform to attract more customers, according to a report by Gambling News.
Meanwhile, DraftKings is operating alongside other competitors such as Fan Duel, Underdog Sports, and Yahoo in Arizona.
What is your sentiment on BTC/USD?
Revenue
DraftKings is one of the largest sportsbooks in the world. The company offers daily sports betting and gambling options for its users and is also involved in the design, development, and licensing of sports betting software for casinos.
Matt Kalish, co-founder and president of DraftKings North America, said in a press release dated 27 August that he is excited for more people to have “some skin-in-the-game as we head into what we expect to be the busiest time of the year for our company.”
The move could also help balance the company’s revenue, which has fluctuated greatly over the past four fiscal quarters.
According to DraftKings’ quarterly filings, the company earned just $70 million for the three months ending on June 30, 2020, as several states implemented lockdown orders in response to COVID-19.
DraftKings revenues doubled in each of the next successive quarters before dipping down to $297m in fiscal Q2 2021 from $317m in Q1 2021.