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DraftKings' (DKNG) Upcoming Launch in Michigan to Aid Expansion
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DraftKings (DKNG - Free Report) has been focused on expanding the market presence of its sports-betting platform to drive customer acquisition. The company’s recent announcement to launch its mobile Sportsbook and Casino app in Michigan, on Jan 22, in collaboration with Bay Mills Resort & Casino, falls in line with the same trend.
The upcoming launch will bring the company’s mobile sports-betting services to a total of 11 states in the United States. It introduced mobile sports betting in Colorado, Illinois, Iowa and Tennessee in 2020.
DraftKings’ wide casino portfolio, which includes 17 blackjack, six roulette and three Baccarat exclusive offerings along with its Sportsbook, will be offered to the Michigan customers.
Growing Momentum in the Sports-Betting Platform Bodes Well
DraftKings’ shares have surged 270.8% over the past year compared with the Zacks Gaming industry’s growth of 1.8%.
This outperformance can be attributed to the pent-up demand for sports-betting from the cancelation of major sports events due to the coronavirus crisis. Resumption of sporting events and the return of major sports leagues bode well for the company’s top line.
Moreover, DraftKings’ growing sports-betting footprint across additional states has expanded its addressable market, which has aided user acquisition for the company.
Notably, the company’s average monthly unique payers soared 64% year over year from 621,000 to 1,021,000 in third-quarter 2020, primarily due to higher customer engagement on its casino and sports-betting platform along with expansion in several new states.
Further, robust demand for iGaming, such as online Blackjack and Roulette, is a major positive. Also, in 2020, the company introduced its Casino Product Suite in West Virginia and Pennsylvania, to boost its presence in the iGaming space.
Expanding Partner Base Fuels Growth
Notably, the sports-betting operator has inked a string of partnership deals with various sports leagues and media companies.
It entered into a multi-year deal with the Chicago Cubs, making the company an exclusive sports-betting operator and daily fantasy partner of the team. The company also inked an agreement with New York Giants to become the official sports betting, gaming & casino and daily fantasy partner of the team.
DraftKings has struck similar partnership deals with sports icon Michael Jordan, Disney’s (DIS - Free Report) ESPN and Turner Sports, a subsidiary of AT&T's (T - Free Report) WarnerMedia. Also, it signed a multi-year extension deal to remain the daily fantasy sports partner of Major League Baseball.
The company’s growing partner base boosts user engagement on its platform and helps fortify its leadership in the U.S. sports betting market, thereby aiding its growth prospects in the near-term.
Long-term earnings growth rate for Nintendo is currently pegged at 9.9%.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
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DraftKings' (DKNG) Upcoming Launch in Michigan to Aid Expansion
DraftKings (DKNG - Free Report) has been focused on expanding the market presence of its sports-betting platform to drive customer acquisition. The company’s recent announcement to launch its mobile Sportsbook and Casino app in Michigan, on Jan 22, in collaboration with Bay Mills Resort & Casino, falls in line with the same trend.
The upcoming launch will bring the company’s mobile sports-betting services to a total of 11 states in the United States. It introduced mobile sports betting in Colorado, Illinois, Iowa and Tennessee in 2020.
DraftKings’ wide casino portfolio, which includes 17 blackjack, six roulette and three Baccarat exclusive offerings along with its Sportsbook, will be offered to the Michigan customers.
Growing Momentum in the Sports-Betting Platform Bodes Well
DraftKings’ shares have surged 270.8% over the past year compared with the Zacks Gaming industry’s growth of 1.8%.
DraftKings Inc. Price and Consensus
DraftKings Inc. price-consensus-chart | DraftKings Inc. Quote
This outperformance can be attributed to the pent-up demand for sports-betting from the cancelation of major sports events due to the coronavirus crisis. Resumption of sporting events and the return of major sports leagues bode well for the company’s top line.
Moreover, DraftKings’ growing sports-betting footprint across additional states has expanded its addressable market, which has aided user acquisition for the company.
Notably, the company’s average monthly unique payers soared 64% year over year from 621,000 to 1,021,000 in third-quarter 2020, primarily due to higher customer engagement on its casino and sports-betting platform along with expansion in several new states.
Further, robust demand for iGaming, such as online Blackjack and Roulette, is a major positive. Also, in 2020, the company introduced its Casino Product Suite in West Virginia and Pennsylvania, to boost its presence in the iGaming space.
Expanding Partner Base Fuels Growth
Notably, the sports-betting operator has inked a string of partnership deals with various sports leagues and media companies.
It entered into a multi-year deal with the Chicago Cubs, making the company an exclusive sports-betting operator and daily fantasy partner of the team. The company also inked an agreement with New York Giants to become the official sports betting, gaming & casino and daily fantasy partner of the team.
DraftKings has struck similar partnership deals with sports icon Michael Jordan, Disney’s (DIS - Free Report) ESPN and Turner Sports, a subsidiary of AT&T's (T - Free Report) WarnerMedia. Also, it signed a multi-year extension deal to remain the daily fantasy sports partner of Major League Baseball.
The company’s growing partner base boosts user engagement on its platform and helps fortify its leadership in the U.S. sports betting market, thereby aiding its growth prospects in the near-term.
Zacks Rank & A Stock to Consider
DraftKings currently has a Zacks Rank #4 (Sell).
A better-ranked stock in the broader Consumer Discretionary sector is Nintendo (NTDOY - Free Report) . It carries a Zacks Rank #2 (Buy), at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Long-term earnings growth rate for Nintendo is currently pegged at 9.9%.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>