DraftKings, which has a sportsbook and daily fantasy platform, has appeared on the news quite a few times as of late. Everything from the stock market to its potential deal with ESPN to its sports betting appeal date in Massachusetts.
DraftKings Has Been Circulating the News as of Late
The Boston-based company is arguably the second most popular brand behind FanDuel in the sports betting industry. DraftKings was one of the sportsbooks to receive a license approval in the state of Ohio, as the market will launch on January 1, 2023.
DraftKings will also be a major part of the Massachusetts sports wagering market when it decides to launch. The starting date of the market has been debated extensively in the Bay State.
Massachusetts Gaming Commission rejected DraftKings’ request for a universal launch date that would have been very similar to Ohio’s approach. The retail markets will mostly launch before the Super Bowl, while mobile sportsbook platforms will be ready in time for March Madness.
Sportsbook companies also struggled in the stock market as the current state has worried many investors due to many factors. DraftKings’ stock has lost more than 70 percent of its value from its 52- week high. Although the company beat its revenue numbers, the company posted a third-quarter net loss of $450.5 million or $1 a share.
The news in California doesn’t seem great, as FanDuel and DraftKings have yet to waive the white flag on Proposition 27. However, with the mid-term elections coming up, many believe that Prop 26 will have a better chance of succeeding.
What is Going on Between DraftKings and ESPN?
As DraftKings earnings call was taking place, CEO Jason Robins didn’t address the potential partnership with ESPN. Prior to moving forward with such deals, the company typically conducts a comprehensive cost-benefit analysis which is essential when making an executive decision.
According to reports, ESPN sought a minimum price tag of $3 billion when it initially explored licensing its sports betting brand in August 2021. Prior to making any major deal, the company must evaluate and weigh the financial implications that come with any deal. Disney’s quarterly earnings call next week may provide investors with more information about ESPN’s long-term plans for monetizing its sports betting brand.
DraftKings is also looking for ways to attract more customers to its platform, as the industry is a competitive market to acquire market share. More customers will be needed as DraftKings looks to close the gap with FanDuel one step at a time.
DraftKings Plans Going Forward
Despite the mix of good and bad news, DraftKings is still one of the most recognizable brands in the nation. It also has numerous partnerships heading into the last quarter of 2022.
With sportsbook operators seemingly moving on from California, sportsbooks like Draftkings are marking their calendars for 2024 for the Golden State if Prop 26 doesn’t gain enough momentum heading into next Tuesday. One thing is for certain the bookmaker will be a part of the universal date launch in Ohio.
