{"id":303475,"date":"2023-12-15T18:51:28","date_gmt":"2023-12-16T00:51:28","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=303475"},"modified":"2023-12-15T21:06:56","modified_gmt":"2023-12-16T03:06:56","slug":"draftkings-holding-strong-in-face-of-new-sportsbook-rivals","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/draftkings-holding-strong-in-face-of-new-sportsbook-rivals\/","title":{"rendered":"DraftKings Not Feeling Heat from New Competitors"},"content":{"rendered":"

The US sports wagering landscape is awash in new, well-heeled competitors, but DraftKings (NASDAQ: DKNG) isn\u2019t feeling adverse effects from those fresh entrants.<\/p>\n

\"DraftKings
A DraftKings billboard appears at Times Square in New York City after the company went public in April 2020. An analyst says the operator is gaining iGaming and sports betting market share. (Image: NASDAQ)<\/figcaption><\/figure>\n

DraftKings and Flutter Entertainment\u2019s FanDuel amount to a duopoly in US online sports betting, controlling more than 70% of the market. Rivals believe they can pilfer some of that share, and there\u2019s evidence to suggest Fanatics and Penn Entertainment\u2019s (NASDAQ: PENN) ESPN Bet are off to solid starts<\/a>, but that\u2019s yet to be a headwind for DraftKings.<\/p>\n

DraftKings cited no immediate impact from the ESPN Bet launch, and sees potential for the offering to grow the market,\u201d<\/strong> Stifel analyst Jeffrey Stantial wrote in a report to clients.<\/p><\/blockquote>\n

The analyst recently met with executives from the gaming company. He rates the stock \u201chold\u201d with a $40 price target, implying upside of 13.1% from today\u2019s close at $35.35.<\/p>\n

DraftKings Proving Resilient Against ESPN Bet<\/h2>\n

Fanatics and ESPN Bet are the two most ballyhooed new entrants<\/a> to the sports betting landscape, with the latter debuting last month. The reasoning is simple: The operators have the resources to compete with behemoths DraftKings and FanDuel.<\/p>\n

\n

As more states have embraced regulated mobile sports wagering, some operators have opted against profligate spending simply for customer acquisition. As a result, some gaming companies scaled back US sports betting ambitions or left the market because it became difficult to generate profits<\/a> after spending to gain mere market share scraps.<\/p>\n<\/div>\n

Fanataics and ESPN Bet could experience different outcomes over the long term, and while the latter appears to be off to a fast start, it\u2019s not yet been a drain on DraftKings in the states where the operators compete against each other.<\/p>\n

\u201cEncouragingly, DraftKings has seen little impact to their customer base, noting comparable user churn & spending patterns during November and early December in states where they compete against ESPN Bet vs. states where ESPN Bet is not yet live,\u201d added Stantial.<\/p>\n

That could signal that ESPN Bet is taking share from other companies or growing the overall sports betting market.<\/p>\n

iGaming, Product Development Could Boost DraftKings in 2024<\/h2>\n

Though the stock declined this week, DraftKings has more than tripled on a year-to-date basis. Demanding investors are asking, \u201cWhat\u2019s next?\u201d meaning there\u2019s a burden on the operator to deliver catalysts for market participants to remain engaged with the stock in 2024.<\/p>\n

Those include new product offerings such as the Pick6 fantasy game<\/a> and progressive parlays and gaining more iGaming share, which could be aided by favorable legislative outcomes next year.<\/strong><\/p>\n

\u201cWe remain constructive on the fundamental outlook for DraftKings, as same-state online sports betting & iCasino growth remains healthy, product mix drives net gaming revenue & margin upside, 2024 shows promise for new state legislation, and DraftKings continues to demonstrate resilience to new competition,\u201d concluded Stantial. \u201cHowever, valuation is demanding, and we remain cautious on potential iCasino market share deconsolidation. Hence we reiterate Hold, though remaining opportunistic on pullbacks.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

The US sports wagering landscape is awash in new, well-heeled competitors, but DraftKings (NASDAQ: DKNG) isn\u2019t feeling adverse effects from those fresh entrants. DraftKings and Flutter Entertainment\u2019s FanDuel amount to a duopoly in US online sports betting, controlling more than 70% of the market. Rivals believe they can pilfer some of that share, and there\u2019s […]<\/p>\n","protected":false},"author":46,"featured_media":258908,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10,19,1074],"tags":[81903,81871,80968],"acf":[],"yoast_head":"\nDraftKings Holding Strong In Face Of New Sportsbook Rivals<\/title>\n<meta name=\"description\" content=\"DraftKings Not Feeling Heat from New Competitors.\" \/>\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-holding-strong-in-face-of-new-sportsbook-rivals\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"DraftKings Holding Strong In Face Of New Sportsbook Rivals\" \/>\n<meta property=\"og:description\" content=\"DraftKings Not Feeling Heat from New Competitors.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/draftkings-holding-strong-in-face-of-new-sportsbook-rivals\/\" \/>\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=\"2023-12-16T00:51:28+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-12-16T03:06:56+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/02\/DKNG-scaled.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"2560\" \/>\n\t<meta property=\"og:image:height\" content=\"1707\" \/>\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=\"3 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-holding-strong-in-face-of-new-sportsbook-rivals\/\",\"url\":\"https:\/\/www.casino.org\/news\/draftkings-holding-strong-in-face-of-new-sportsbook-rivals\/\",\"name\":\"DraftKings Holding Strong In Face Of New Sportsbook Rivals\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/draftkings-holding-strong-in-face-of-new-sportsbook-rivals\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/draftkings-holding-strong-in-face-of-new-sportsbook-rivals\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/02\/DKNG-scaled.jpg\",\"datePublished\":\"2023-12-16T00:51:28+00:00\",\"dateModified\":\"2023-12-16T03:06:56+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"DraftKings Not Feeling Heat from New Competitors.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/draftkings-holding-strong-in-face-of-new-sportsbook-rivals\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/draftkings-holding-strong-in-face-of-new-sportsbook-rivals\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/draftkings-holding-strong-in-face-of-new-sportsbook-rivals\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/02\/DKNG-scaled.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/02\/DKNG-scaled.jpg\",\"width\":2560,\"height\":1707,\"caption\":\"DraftKings stock highlighted at the Nasdaq market site in New York City. 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