{"id":204168,"date":"2022-03-07T11:36:39","date_gmt":"2022-03-07T19:36:39","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=204168"},"modified":"2022-03-07T12:14:54","modified_gmt":"2022-03-07T20:14:54","slug":"draftkings-broadens-polygon-exposure-but-stock-stumbles","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/draftkings-broadens-polygon-exposure-but-stock-stumbles\/","title":{"rendered":"DraftKings Staking Polygon Rewards, Shares Slump on Analyst Downgrade"},"content":{"rendered":"

DraftKings (NASDAQ:DKNG) is moving further into the cryptocurrency space, announcing today it will stake digital assets to support the Polygon blockchain network. But shares of the gaming company are sliding due to an analyst downgrade.<\/p>\n

\"DraftKings
DraftKings is expanding into the cryptocurrency arena with Polygon. However, the stock has slumped on analyst downgrade. (Image: Polygon Blog)<\/figcaption><\/figure>\n

Today, the Boston-based online sportsbook operator said it’s partnering with Zero Hash to stake digital assets it holds in its treasury to support the Polygon (MATIC) blockchain network.<\/p>\n

With this collaboration, DraftKings is optimizing its working capital and liquidity as it operates a validator node that contributes to Polygon\u2019s governance and network security,\u201d<\/strong> according to a statement issued by the gaming company.<\/p><\/blockquote>\n

DraftKings announced a partnership with Polygon<\/a> last October. The digital coin — the 16th-largest by market value — supports transactions on DraftKings Marketplace. That’s the gaming company’s non-fungible token (NFT) unit.<\/p>\n

Investors Yawn<\/h2>\n

DraftKings’ Polygon announcement is part of the company’s wider Web3 initiative and potentially a sign of long-term plans to become more of a fintech firm than just a pure-play gaming operator.<\/p>\n

\n

However admirable those plans may be, they are long-ranging. For today, investors aren’t impressed, as DraftKings’ stock remains mired in a lengthy slump<\/a>. In midday trading, it’s down more than 10% after Argus analyst John Stazak downgraded the stock to \u201chold\u201d from \u201cbuy.\u201d<\/p>\n<\/div>\n

\u201cDKNG is facing fierce competition from MGM and Wynn, which are expanding their online sports betting operations, and in our view needs to strengthen its marketing efforts. We also expect revenue growth to slow in 2022, as fewer states approve online sports betting,\u201d he said in a note to clients.<\/p>\n

Stazak adds he doesn’t expect DraftKings will notch a profitable quarter until the July through September period of 2023. Argus doesn’t assign a price target to the stock, which was down 24.68 percent year-to-date entering today.<\/p>\n

DraftKings Sportsbook is currently available in Arizona, Colorado, Connecticut, Illinois, Indiana, Iowa, Louisiana, Michigan, Mississippi, New Hampshire, New Jersey, New York, Oregon, Pennsylvania, Tennessee, Virginia, West Virginia, and Wyoming.<\/p>\n

Polygon Pertinence<\/h2>\n

Last year, CEO Jason Robins said he\u2019d like his company to accept crypto as a form of payment<\/a> for online casinos and sports betting. But state regulators currently don\u2019t permit that. He\u2019s broadly bullish on crypto, noting the asset class will \u201clikely transform some entire industries and portions of others.\u201d<\/p>\n

An increasing number of companies are holding bitcoin, the largest digital asset, on their balance sheet. Regarding Polygon becoming a bigger contributor to the DraftKings investment thesis, that’s possible down the road if the adoption and usage cases for the digital token expand.<\/p>\n

\u201cPolygon is the fastest growing blockchain with high speed and low gas infrastructure. DeFi bluechip dApps including Sushiswap, Curve, Aave, Balancer, Kyber have all integrated Polygon,\u201d <\/strong>according to DraftKings.<\/p>\n","protected":false},"excerpt":{"rendered":"

DraftKings (NASDAQ:DKNG) is moving further into the cryptocurrency space, announcing today it will stake digital assets to support the Polygon blockchain network. But shares of the gaming company are sliding due to an analyst downgrade. Today, the Boston-based online sportsbook operator said it’s partnering with Zero Hash to stake digital assets it holds in its […]<\/p>\n","protected":false},"author":46,"featured_media":204170,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[24066,1074],"tags":[],"acf":[],"yoast_head":"\nDraftKings Broadens Polygon Exposure, But Stock Stumbles<\/title>\n<meta name=\"description\" content=\"DraftKings inks Polygon partnership with Zero Hash, but stock slides amid analyst downgrade.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.casino.org\/news\/draftkings-broadens-polygon-exposure-but-stock-stumbles\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"DraftKings Broadens Polygon Exposure, But Stock Stumbles\" \/>\n<meta property=\"og:description\" content=\"DraftKings inks Polygon partnership with Zero Hash, but stock slides amid analyst downgrade.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/draftkings-broadens-polygon-exposure-but-stock-stumbles\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2022-03-07T19:36:39+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-03-07T20:14:54+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/03\/polygon.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1920\" \/>\n\t<meta property=\"og:image:height\" content=\"1080\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Todd Shriber\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@etfgodfather\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Todd Shriber\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/draftkings-broadens-polygon-exposure-but-stock-stumbles\/\",\"url\":\"https:\/\/www.casino.org\/news\/draftkings-broadens-polygon-exposure-but-stock-stumbles\/\",\"name\":\"DraftKings Broadens Polygon Exposure, But Stock Stumbles\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/draftkings-broadens-polygon-exposure-but-stock-stumbles\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/draftkings-broadens-polygon-exposure-but-stock-stumbles\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/03\/polygon.jpg\",\"datePublished\":\"2022-03-07T19:36:39+00:00\",\"dateModified\":\"2022-03-07T20:14:54+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"DraftKings inks Polygon partnership with Zero Hash, but stock slides amid analyst downgrade.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/draftkings-broadens-polygon-exposure-but-stock-stumbles\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/draftkings-broadens-polygon-exposure-but-stock-stumbles\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/draftkings-broadens-polygon-exposure-but-stock-stumbles\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/03\/polygon.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/03\/polygon.jpg\",\"width\":1920,\"height\":1080,\"caption\":\"An image touting the DraftKings\/Polygon relationship. 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