Interest in betting has grown on the eve of the Super Bowl: Will DraftKings be the beneficiary?
One of the beneficiaries of this explosive growth was the gambling operator DraftKings Inc. (DKNG). According to preliminary estimates, the 2022 Super Bowl by approximately 117 million viewers is one of the record figures. At the same time, the National Football League season finale can bring more than $7.5 billion in bets on the game’s outcome.
The American Gaming Association, a record 31.4 million people, will bet on the Super Bowl in the United States. DraftKings, which also offers mobile sports betting, can receive part of this income. Recall that last year, and the US Supreme Court decided to allow states to determine whether or not to legalize sports betting independently.
DraftKings is capitalizing on this trend: It already offers mobile sports betting in 17 states, including New York. Sports betting brings DraftKings about $1 billion in additional sales in this region. DraftKings intends to present a quarterly report to convince investors that revenue growth continues at the end of this week. Recall that as of September 30, 2021, the DraftKings network had 1.34 million unique players per month.
The Super Bowl may attract a different audience. However, after summing up the results, exactly how this will affect revenue will be apparent a little later. According to preliminary estimates, the majority of DraftKings users (54% of the total amount of bets) were betting on the victory of the Los Angeles Rams opponent – the Cincinnati Bengals team, which means that most of the company’s chances on the results of the competition lost.
The risk for DraftKings is a high percentage of spending on advertising and marketing. In the past quarter, it took about 85% of revenue. Probably, this figure may decrease in percentage terms if the company can attract more regular customers.
