DraftKings Downplays Threat from New Competitors As Hold and Market Share Grow

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The chief executive officer of DraftKings Inc. says the Boston-based bookmaker plans to stay disciplined in the face of fresh competition, which the online sports betting company expects will continue its recent surge in market share and revenue.

The chief executive officer of DraftKings Inc. says the Boston-based bookmaker plans to stay disciplined in the face of fresh competition, which the online sports betting company expects will continue

“We've certainly contemplated a variety of different scenarios in our guidance,” Robins said. “And at this point, I think we have a decent amount of experience and historical data on ... different types of competition that might emerge.

DraftKings' financial results for the three months ending Sept. 30 included $790 million in revenue, a 57% increase compared to the third quarter of 2022. DraftKings also touted recent reports that place it first among other U.S. sports betting and iGaming companies by gross gaming revenue during the third quarter, as it captured around 33% of total receipts in the markets in which it operates.

DraftKings shrunk its loss for the third quarter as well, to $283.1 million this year compared to a $450.5 million deficit in 2022. That was due in part to trimming some costs, including on the sales and marketing side of the business. Those promotional expenses amounted to $313.3 million for the three months ending Sept. 30, slightly lower than the $321.7 million reported a year earlier.

“We believe the quarterly upside and above-Street guidance support our thesis in digital that leading operators, notably DKNG, are pivoting from investment spending to profits through product advancement,” Jefferies analyst David Katz wrote in a note to clients on Thursday. “In short, we believe this transition has considerable room to evolve. Thus, we expect a positive reaction in the shares.”

 

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