- DraftKings (NASDAQ: DKNG) may have given up all of its gains in recent weeks.But, following recent election results, the bull case for this sports betting play has only gotten stronger.
- The Tennessee Education Lottery Corporation oversees sports betting in accordance with the laws of the State of Tennessee. With that, Tennessee has regulations that may differ from other states. DraftKings Sportsbook offers dozens of American and international sports for users to bet on.
- Sports betting in Indiana is regulated by The Indiana Gaming Commission. With that, Indiana has regulations that may differ from other states. DraftKings Sportsbook offers dozens of American and international sports for users to bet on.
2 days ago If DraftKings can gain a large pool of daily fantasy users, it could cross-promote its sports betting if Canada legalizes. DKNG Price Action: Shares of DraftKings were up 2.84% to $61.82. Indiana became the 14th state to legalize sports betting on May 8, 2019 and officially went live on September 1, 2019. Anyone who is at least 21 years of age, has a valid United States Social Security Number and is physically within the state of Indiana can bet with DraftKings Sports.
Costa bingo mobile. DraftKings has expanded its DFS deal with the NFL north of the border in a move that could boost the operator’s profile ahead of legal sports betting in Canada.
The NFL and DraftKings first partnered back in September 2019 with DraftKings named the exclusive DFS sponsor of the league.
As part of that agreement, DraftKings gained access to NFL branding and content opportunities across the DraftKings app and NFL Media.
That partnership was for the US only but has now been expanded to the Great White North.
Is DraftKings focused on DFS or betting?
“The relationship we share with the NFL is important for DraftKings to provide customers a great experience,” said Ezra Kucharz, chief business officer at DraftKings.
“This expanded agreement gives us a unique opportunity in the Canadian market. We look forward to working with the team at the NFL Canada as we continue to shape the modern fan experience.”
A quote from the NFL also spoke about the growing popularity of DFS in Canada. But it’s hard to look past Canada sports betting as the key driver for the new deal.
Momentum for Canada sports betting
The Canadian government is bidding to end the federal ban on single-game sports betting.And the province of Ontario plans to end its lottery-run monopoly on online gambling. That would allow private operators into the market.
Ontario alone would be equal to the fifth-largest state in the US with 15 million citizens. Toronto-based TheScoreestimated a market potential in Ontario of $1.5 – $2.1 billion in annual gross gaming revenue.
The market could be live by the second half of 2021, TheScore said.
Just as DraftKings built up an audience in the US via DFS, it can now gain a similar head-start in Canada sports betting. All told it’s been a good news week for DK. The company’s stock jumped more than 10% following an investment from one superstar stock picker.
DraftKings stock shares jumped 9% today on news that CathieWood and her ARK fund started buying $DKNG.
According to a trading update after close on Monday, the ARK Next Generation Internet ETF (ARKW) acquired 620,300 shares of $DKNG. That chunk was worth around $34 million based on Monday’s closing price of $59.
It marked the first time any of the ARK investment funds had invested in DraftKings.
ARK buying $DKNG for the first time. https://t.co/59ayMIntSQ
— Eric Balchunas (@EricBalchunas) February 2, 2021
Why does it matter for DraftKings stock?
As the stock jump indicated, ARK is one of the most respected funds in the US. Wood is known for her bullish early calls on assets like Tesla and Bitcoin.
The ARKW fund was up 157% in 2020. Other ARKW holdings include tech giants like Spotify and Netflix.
The $34 million investment is equivalent to around 0.5% of the ARKW portfolio.
Ark is bullish on sports betting
The investment follows an ARK report in January that called for huge growth in US online sports betting.
Draftkings Sports Gambling Rules
“Legalized online sports betting is giving companies – and the leagues themselves – an opportunity to offer exciting interactive experiences and generate new sources of revenues,” Ark Invest analyst Nicholas Grous said.
Draftkings Sports Betting
Grous called for total US sports betting revenues to hit $37 billion by 2025 – the top end of previous analyst estimates. That projection includes $18 billion from traditional sports betting, along with $13 billion from fantasy and $6 billion from esports betting.
Draftkings Sports Betting Championship 2020
“We believe the handle for online sports betting could scale 10x from roughly $18 billion to $180 billion,” Grous said.
Sports Gambling Stocks
DraftKings shares were last up 9% to $59. The company reports its Q4 results on February 26. Analysts expect the company to post revenues of $232 million.
DraftKings went public through a SPAC process in April 2020, becoming the first major sports betting operator to offer shares on a US-facing index. The offering included DraftKings and SBTech combining their businesses after DK agreed to purchase the tech provider in December 2019.