DraftKings Inc. (NSDQ:DKNG)operates as a digital sports entertainment and gaming company in the United States. It operates through two segments, Business-to-Consumer and Business-to-Business. The company provides users with daily sports, sports betting, and iGaming opportunities. It is also involved in the design, development, and licensing of sports betting and casino gaming platform software for online and retail sportsbook, and casino gaming products. The company distributes its product offerings through various channels, including traditional websites and direct app downloads, as well as direct-to-consumer digital platforms, such as the Apple App store and the Google Play store. DraftKings Inc. was founded in 2011 and is headquartered in Boston, Massachusetts.
As sports-betting legalization spreads across U.S. states, DraftKings is at the forefront of the online betting industry. DraftKings is an online sports platform that allows users to play daily fantasy games and win cash prizes. DraftKings is on the road to profitability. After losing $3.95 a share in 2020, the company is expected to lose $2.83 per share in 2021 and $1.89 per share in 2022, according to IBD data.
DraftKings continues to launch its sportsbook in more states, with the latest being Arizona (its 14th). The company’s fantasy sports product — which doesn’t require the legalization of sports betting — is in 44 states. Over the past two quarters, the company has brought in $610 million in revenue, more than three times the $188 million it reported a year earlier.
And in addition to organic growth, the company will also get a boost next year from its recent all-stock acquisition of sports entertainment company Golden Nugget Online Gaming, which will expand its reach to even more customers. Golden Nugget generated $107 million over its last four quarters and was profitable (DraftKings has incurred losses totaling $903 million in the trailing 12 months). The companies expect the deal to close in the first quarter of next year.
Between more markets potentially opening up, the inclusion of Golden Nugget in its results, and sports leagues looking to enjoy full seasons after a pandemic year in 2020, now may be an opportune time to buy DraftKings stock, as 2022 is likely to be another record-breaking year for the company. DraftKings stock is a promising long-term prospect in the sports-betting industry, and the company’s potential is encouraging. Despite a lack of earnings, the company has huge revenue growth and is one of the leaders in the online betting megatrend.
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