DraftKings Goes Public After Shareholder Approval
It seems like it was yesterday, even though it was back in 2012, that DraftKings was making its splash in the online sports betting market. Going even further back to 2005, and at first, all you could do were small bets on either player performances or daily fantasy options.
Now take a look at it, and not only do you have one of the top online fantasy sports networks that you can play their casino and bet on sports, but that network just went public on the stock market, and you can invest in the business. If this does not smell like money, you should get your nose checked out.
How Does DraftKings Make Money?
Since early 2012, betting on daily fantasy sports was something of a gold rush. You had a lot of people wanting to invest millions in the company to eventually make it go public, and it finally ended up happening.
DraftKings makes its money by online ad revenue, partnerships, loyalty program from customers, and their newer ventures into the online casino space. As long as people are willing to bet on sports, play casinos online, and pretty much use the internet, DraftKings will have a business to operate.
DraftKings Stats On Revenue
To put those categories in perspective, in 2019, DraftKings had 684,000 unique monthly players. That was an increase of 13 percent from 2018. These numbers are important because you can tell the company is still growing its users base.
To break down how profitable the company is, you need to look at the average dollar amount for each person. By using the numbers above, the average revenue for each player in 2019 was $39 a month compared to the $31 a year earlier.
Should I Invest In DKNG?
There are a couple of scenarios that make investing in a company like DraftKings would be a great idea. But to invest in something like this, you need to understand what you are getting into and what your investment preferences are.
If you had bought shares of DKNG when they were first announced and then sold shortly after, you would have had a nice gain. According to this article, the coronavirus did not alter the first day of trading at all for the company.
But that is just one example of many possible ways to invest, and I am not advising you to do anything without your own research or advice from your own broker. But there seems to be money in the future for DraftKings.
There’s one thing I want to leave you with as a positive for the company. If you look around or pay attention to the news at all, this coronavirus has literally shut just about everything down for the economy. Narrow it down to the betting world, and no one can participate in live sports, go to casinos, or anything to do with recreational activities that involve betting such as poker.
However, DraftKings going public is another huge game-changer for the world of online casinos and sports betting. I am optimistic that in the next decade that nearly all of the states will legalize sports betting and expand their online casino options.
If a pandemic like this ever comes back around, or we are forced to stay home, this business is going to be in one of the best shapes because people will be able to have content available in the comfort of their own homes. They are setting themselves up for what appears to be a very profitable next decade.
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