Ah, DraftKings! You may have heard about this once little known Boston-based daily fantasy sports company that has made giant strides to become one of the most recognized names in the sports betting sector. In a short span, DraftKings has been able to place itself as a leader in the green US sports betting market ever since the Supreme Court relaxed the laws surrounding sports betting in May 2018.
Established in 2012, DraftsKing initially launched with a single daily fantasy sports product that allowed gamblers to make bets on the performance of players in an array of sports. During the first early years, DraftsKing injected millions on marketing partnerships with the NFL, and other leagues to find its footing.
However, once the Supreme Court struck down the Professional Amateur Sports Protection Act, DraftsKing rushed into the sports betting business and begun offering online versions of beloved casino games like roulette and slots.
Today, DraftKings operates sports betting, daily fantasy sports, as well as online casino gambling in a fast-growing industry. So how has DraftsKing stock been able to thrive while the outbreak has stifled so many other business operations internationally?
The DraftKings Merger has been a great boost
DraftKings recently entered into a three-way merger with gaming tech specialists SBTech and investment firm Diamond Eagle Acquisition Corp as covered here. This deal, which was first announced in December 2019, effectively made what DraftKings described as the only ‘vertically integrated pure-play sports betting and online gaming company’ in the United States.
Thanks to the data science expertise offered by Diamond Eagle and the industry-leading products offered by SBTech’s recognized technology platform, DraftKings has been able to continue accelerating its offerings, innovation, development, which has allowed it to scale at unprecedented speeds.
Plus, since DraftsKing was able to go public on the Nasdaq through a blank check company, it successfully placed itself in a better position to withstand the impending market turmoil that has been brought about by this pandemic.
Daily fantasy sports companies like DraftKings are thriving on odd events
All major sports may be suspended in the US, as well as in many parts of the world. However, this hasn’t stopped betters as they search for a piece of the action through daily fantasy sports companies like DraftKings. The only difference now is that many betters are now wagering on competitions that they would typically be unbothered with.
Why is that? Gamblers have now been forced to settle for anything that they can bet on while many others are have started wagering simply because they are in search of a pastime that will get their minds off things. So what exactly are gamblers betting on these days? All sorts of things, that’s what.
Oddsmakers have quickly been forced to become creative as league shutdowns continue to persist. Sportsbooks like DraftKings are now offering betters opportunities to bet on virtual events, which has been quite interesting, to say the least.
DraftKings and other similar daily fantasy sports companies have launched betting pools around interesting topics such as politics or TV shows. They are also zeroing in on smaller or internal events that are still in sessions such as rugby, horse racing, and Australian A-league soccer.
As more sports such as auto racing events like NASCAR or UFC continue to return to action, DraftKings stock is slated to become even more competitive than it is currently as written here. As more sports leagues and associations continue to churn out video game simulations or esports in place of in-person live events, new betting opportunities will continue to emerge.
Before the casinos resumed normal operations, physical sportsbooks operators had been put in difficult situations as a result of the shutdown. The lack of customers obviously caused others to undergo financial hardship. However, daily-fantasy-sports companies quickly leaned on their daily fantasy businesses which is what has allowed them to weather the tough economic climate.
If you are worried about the gambling industry as a whole, try not to be. Gambling is one of the oldest and most resilient industries out there. And even though there is still no timeline as to when sports will resume fully or any promise that things will return as they were, the interest in sports gambling is so vibrant these days that the industry is sure to bounce back.
In the meantime, daily fantasy sports companies such as DraftKings will be around to book what you want to bet. That’s why DraftKings stock will continue to remain competitive despite the lack of sports to bet on.