A Super Bowl hangover for sports betting companies

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The Super Bowl was a bonanza for the gambling business thanks to new customers from New York, which recently legalized sports betting. But now comes the hard part for companies like DraftKings and FanDuel.

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Betting upstarts need to spend big bucks to attract new users — but like a gambler chasing a huge payday, companies can easily get in over their heads with marketing and acquisition costs if they're not careful.That challenge was on full display with DraftKings, whose shares plunged nearly 20% Friday despite sales that topped expectations and a boosted outlook.

 

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