DraftKings DKNG has introduced DraftKings Pick6, a new fantasy sports variant that operates on a peer-to-peer model, focusing on a straightforward "more or less" mechanic for individual player statistics.
After the initial launch in six states, including Maryland, Minnesota, Oklahoma, South Carolina, Tennessee and Wisconsin on December 6th, the company plans further rollouts. Pick6 will kick off with player picks for NFL and NBA contests.
DraftKings' fantasy variant, Pick6, maintains the company's tradition of peer-to-peer competition among customers, ensuring a chance at guaranteed prizes. The concept is straightforward, allowing users to construct a lineup featuring two to six players from multiple teams. Users can then decide the level of each athlete's statistic. This simplicity is central to the product's appeal.
Pick6's core gameplay is complemented by several additional features. A notable addition is the "My Picks" functionality, which provides users with a dynamic tool to monitor their picks throughout the process, whether they are submitted, live or finalized. The product interface also includes options for lineup edits, adding funds and real-time tracking of player performance.
These initiatives are expected to boost the company’s top-line growth in the upcoming quarters.
The Zacks Consensus Estimate for DraftKings’ 2023 revenues is pegged at $3.7 billion, indicating year-over-year growth of 65.29%. The consensus estimate is pegged at a loss of $1.5 per share, indicating a year-over-year rise of 52.53%.
DraftKings Inc. Price and Consensus
DraftKings Inc. price-consensus-chart | DraftKings Inc. Quote
DraftKings Faces Tough Competition in The Online Sports Betting Market
According to a Statista report, The Online Sports Betting market in the United States is anticipated to witness an annual growth rate (CAGR 2023-2028) of 15.63%, which would result in a market volume of US$15.75bn by 2028. Furthermore, it is estimated that the number of users in this market will reach 52.0m by 2028.
This growing market has attracted many big players like Flutter Entertainment PDYPY, Caesars Entertainment CZR and MGM Resorts International MGM.
Flutter Entertainment’s FanDuel possesses a substantial base of fantasy users that it can effectively cross-promote to, capitalizing on its established brand. Flutter Entertainment also controls major brands like PokerStars, Paddy Power, SkyBet, and Betfair, and offers FanDuel access to extensive knowledge and experience, particularly in prominent gambling markets, including Europe. FanDuel and DraftKings are closely matched in terms of their geographic presence across states.
Caesars Entertainment acquired William Hill has a longstanding presence in the U.S., with sportsbooks already active in 14 states, William Hill, now under Caesars, can leverage the widespread presence of Caesars properties nationwide. The strategic alliance with Caesars, along with exclusive partnerships with CBS Sports and ESPN apps, add to William Hill's strengths.
BetMGM has a wide range of online gambling brands under its umbrella across the world, including Ladbrokes, Coral and partypoker. It is well-known in the U.S., having almost 30 properties dotted around the nation. One of BetMGM's main growth strategies is signing partnership deals with major sports teams in the states in which it is launching. Some of its partners to date include the Washington Nationals, Detroit Lions, Denver Broncos and Philadelphia 76ers.
DraftKings has recently introduced "Progressive Parlay" as an upcoming feature in its highly regarded sports betting product. This regulated sports betting wager, set against the house, involves placing a parlay bet on player props. This feature enhances the inclusivity of DraftKings' sports betting platform, providing users with more diverse and engaging options.
Shares of this Zacks Rank #3 (Hold) company have gained 216.3% year to date compared with the Zacks Consumer Discretionary sector’s rise of 10.8%. The stock has outperformed due to constant innovation with relevant and innovative features. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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