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DraftKings (DKNG) Enters New York Sports Betting Market

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DraftKings (DKNG - Free Report) ) recently announced the launch of its online and mobile sports betting platform in New York.

The New York Gaming Commission legalized mobile and online sports betting in New York last April. DraftKings is looking to capitalize on this opportunity to become the first entrant in New York’s mobile and online sports betting market.

DraftKings is strategically launching the online betting platform in New York ahead of 2022 NFL Playoffs, which marks the busiest season for betting activity in the year.

New York is home to 10 professional sports teams spanning six major leagues, with an additional three teams located within 15 miles of the New York City. The state boasts one of the strongest sports cultures in the world, with millions of passionate sports fans.

DraftKings is keen to tap into the uncharted market of online sports betting in New York and gain sports fanatics as potential customers.

DraftKings Inc. Price and Consensus

NFL Partnership to Aid Growth

DraftKings recently partnered with The NFL Players Association to launch gamified NFT (non-fungible token) collections that will debut on DraftKings Marketplace during the 2022-2023 NFL season.

This partnership will allow DraftKings to capitalize on the increasing intersection between sports and NFTs, which will become one of the cornerstones of engagement and entertainment in Web3.0.

NFTs are a new alternate investment frontier currently facing a positive momentum and DraftKings is looking to win lost market share by investing in this new asset class.

In fact, the company is further betting on NFL’s deep connection with the New York City. With three major football teams, the New York City boasts some ardent football fans, and DraftKings is offering them an online betting platform as a new source of entertainment and a place to capitalize on their interest.

DraftKings has declined 50.4% versus the Zacks Consumer Discretionary Industry's fall of 13.8% in the past year. The Zacks Consensus Estimate for 2022 is pegged at a loss of $2.98 per share, which widened from a loss of $2.90 over the past 60 days.

DraftKings’ shares have largely suffered because of the looming coronavirus having affected major sporting events year long.

Nonetheless, with new partnership strategies with NFL and entry into the New York betting market, the company is looking to regain lost earnings per share.

Zacks Rank & Stocks to Consider

DraftKings currently carries a Zacks Rank #4 (Sell).

Some better-performing stocks in the same industry include International Game Technology (IGT - Free Report) , DoubleDown Interactive (DDI - Free Report) and Accel Entertainment (ACEL - Free Report) . You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

International Game Technology’s shares have increased 57.6% in the past year. The Zacks Consensus Estimate for 2022 earnings is pegged at $1.69 per share, which has increased by 23 cents over the past 60 days.

DoubleDown Interactive’s shares have declined 15.4% in the past year. The consensus mark for 2022 earnings is pegged at $1.61 per share, which has improved by 7 cents over the past 60 days.

Accel Entertainment’s shares have gained 21.3% in the past year. The Zacks Consensus Estimate for 2022 earnings has been unchanged at $1.01 per share over the past 60 days.