Back to top

Image: Shutterstock

DraftKings (DKNG) Inks Deal to Enter Puerto Rico Betting Market

Read MoreHide Full Article

DraftKings (DKNG - Free Report) and the Mashantucket Pequot Tribal Nation recently announced their decision to expand their relationship.

After the fruition of the deal, subject to applicable licenses and regulatory approvals being obtained, DraftKings will be able to launch its online and retail sports betting experience in Puerto Rico.

The DraftKings retail sportsbook will be located inside the Foxwoods El San Juan Casino and is expected to open in the coming weeks, pending approvals.

Last year in January, the Mashantucket Pequot Tribal Nation and Foxwoods had announced plans to reopen the iconic El San Juan Casino as the Foxwoods El San Juan Casino.

The announcement follows the successful launch of sports betting and iGaming by DraftKings and Foxwoods in Connecticut in October 2021.

Focus on Online Sports Betting

DraftKings is keen on tapping the online sports betting market and gaining sports fanatics as potential customers. The company is leaving no stone unturned to bolster its presence in the online sports betting market.

Earlier this year, the company stated that it would extend its relationship with Golden Nugget Casino Lake Charles with the launch of mobile sports betting for eligible customers in Louisiana’s permitted parishes, which was slated to begin on Jan 28.

In November 2021, Golden Nugget Casino Lake Charles and DraftKings had jointly launched a new retail sportsbook at Golden Nugget Casino Lake Charles.

In January 2022, DraftKings announced that it would become the official sportsbook provider for the government-run Oregon Lottery.

Per the agreement, DraftKings Sportsbook replaced the current Scoreboard app, starting Jan 18.

Present Scoreboard customers will be able to shift their existing funds to the DraftKings Sportsbook app by creating a DraftKings account.

The company also announced the launch of its online and mobile sports betting platform in New York.

DraftKings Inc. Price and Consensus

 

DraftKings Inc. Price and Consensus

DraftKings Inc. price-consensus-chart | DraftKings Inc. Quote

 

Online and mobile sports betting have been recently legalized in New York by The New York Gaming Commission. DraftKings strategically launched its platform to capitalize on the opportunity, becoming one of the first operators in the Empire State.

DraftKings’ decisions are in sync with its focus on strengthening foothold in the sports betting market.

Following the successful launches in New York and Louisiana, DraftKings is presently live with mobile sports betting in 17 states that collectively represent approximately 36% of the U.S. population.

Based on all of the states where DraftKings is currently live and if legalization trends remain consistent with prior years (which has been approximately 7% to 9% mobile sports betting legalization per year and 3-4% iGaming legalization per year), the company expects to generate positive adjusted EBITDA in the fourth quarter of 2023.

In the last reported quarter, DraftKings recorded a 32% year-on-year rise in its monthly unique players (MUPs) for its B2C segment, mainly driven by the company’s strong unique payer retention and acquisition across its Sportsbook and iGaming product offerings and its expansion into new states.

In fourth-quarter fiscal 2021, DraftKings reported revenues of $473 million, up 47% year over year. Rising demand for online gambling on platforms such as online poker, casino games and lottery is likely to fuel the top line in the ongoing quarter.

Zacks Rank and Stocks to Consider

Currently, DraftKings has a Zacks Rank #4 (Sell).

DKNG shares have dropped 25.7% compared with the Zacks Gaming industry’s decline of 16.9% and the Consumer Discretionary sector’s fall of 11.4% in the year-to-date period.

Some better-ranked stocks in the Zacks Consumer Discretionary sector are Academy Sports and Outdoors (ASO - Free Report) and Funko (FNKO - Free Report) , both sporting a Zacks Rank #1 (Strong Buy) at present, and Boyd Gaming (BYD - Free Report) , currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

ASO shares have declined 11.9% in the year-to-date period compared with the Zacks Leisure and Recreation Products industry’s fall of 21.6% and the Consumer Discretionary sector’s decline of 11.5%.

FNKO shares have declined 6.3% in the year-to-date period against the Zacks Consumer Products - Discretionary industry’s decline of 24% and compared with the Consumer Discretionary sector’s plunge of 11.5%.

BYD stock has gained 2.1% in the year-to-date period against the Zacks Gaming industry’s plunge of 16.9% and compared with the Consumer Discretionary sector’s decline of 11.4%.