DraftKings enters the New York market: shares have risen in price
DraftKings Inc. (DKNG) betting company started providing online betting services in New York State last weekend. The news became the driver of the growth of quotations by more than 5.5%, to $ 27.24 at the auction on January 7. The state of N.Y. (New York) passed a law on online gambling back in April 2021, and recently the state administration presented a list of companies that can provide such services. Among those mentioned are DraftKings.
The presence in New York is an opportunity for the company to enter one of the largest online betting markets. At the same time, DraftKings has scheduled the launch of its service on the first day allowed for this — January 11. a good moment, since it is at this time that the U.S. National Football League playoffs start, and fans become especially gambling.
High interest in betting, as a rule, is maintained until the day of the Super Bowl, which is 2022, will be held on February 13. However, DraftKings investors should consider that the New York market is highly competitive. The state administration has already allowed at least four companies to work there. In addition to DraftKings, Caesars Entertainment, Rush Street Interactive, and FanDuel will offer online betting.
That DraftKings will have to increase marketing and advertising costs to attract new customers. Additional expenses may limit the amount of profit in this market. However, it should note that expanding geography and partnerships is the primary way DraftKings revenue grows. For example, the company has an agreement with the private technology company Simple bet, which specializes in creating solutions for microstock, that is, betting on individual games within the framework of a sports event.
DraftKings has also become the official gaming partner of the wrestling fights operator World Wrestling Entertainment in providing access to in-game purchases. The company received exclusive rights to the media assets of World Wrestling Entertainment and the rights to place the brand at WWE events. In addition, DraftKings has become a which gives it access to a large audience. DraftKings services are available to set-top box users and DISH Network mobile service subscribers.
