DraftKings has cut at least 140 jobs as one of the biggest sports betting companies in the country seek to improve its operational efficiency. The 140 jobs that the brand has cut represent close to 4% of the company’s workforce.
DraftKings spokesperson Stephen Miraglia announced the cutbacks, which he said are intended to allow the company to achieve its goals in 2023. Based on Miraglia’s account, DraftKings has already reorganized its staff, which is how the 140 roles were axed.
The layoffs consisted of at least 15 positions in its headquarters. This decision to fire its staff members is in contrast to the brand’s announcement in 2021 when it pledged to hire more casino staff if Massachusetts legalized its sports betting market. Most of the roles that have been impacted by the layoffs include HR and engineering.
DraftKings starts operating in its home state Massachusetts
DraftKings has already started operating in Massachusetts, its home state soon. Founded in 2012 and still headquartered in Boston, the brand debuted its sportsbook online on March 10th. Although the brand first launched with one-on-one baseball contests, the DraftKings brand has since evolved to include one of the most popular online sportsbooks.
Last year, the brand also launched a brand-new progressive jackpot product for customers in New Jersey. In addition to its sports betting and progressive jackpot products, DraftKings also still controls one of the most established daily fantasy sports platforms in the world. Although the brand is still proud of its fantasy sports products, its focus has largely shifted to sports betting.
Sports betting kicked off in Massachusetts on the last day of January. However, DraftKings wasn’t allowed to start operating until much later. In the first few days of legal sports betting in Massachusetts, only the state’s 3 casinos and their partners were allowed to accept wagers.
These 3 casinos include Plain ridge Park, Encore Boston Harbor, as well as MGM Springfield. The casino’s corresponding partners are Barstool, WynnBet, as well as BetMGM. The brick-and-mortar casinos in the state, alongside their partners, are allowed to offer both retail, as well as online sports betting.
In addition, the state gambling law also permits online sportsbooks that aren’t tied to physical casino establishments in the state. This is where DraftKings comes in, as it is one such licensee. DraftKings boasts a Category 3 sports betting permit that was granted by the Massachusetts Gaming Commission at the start of the year.
DraftKing’s years of experience and its longstanding relationship with punters in the state will allow the brand to quickly establish itself among punters. To make things easier, DraftKings also has relationships with several of the biggest sports teams and franchises in the state.
For instance, DraftKings has partnerships with the New England Patriots, the Boston Celtics, as well as the Boston Bruins. But DraftKings is not the only brand that received a Category 3 sports betting license from the state Gaming Commission. DraftKings’ biggest rival FanDuel, as well as 6 other sportsbook platforms, were also awarded a similar license in January.
DraftKings pushes forward with its expansion plans
Not too long ago in March, DraftKings announced the launch of its brand-new retail sportsbook in Dodge City, Kansas. The 2,500-square-foot brick-and-mortar sportsbook will be situated at the Boot Hill Casino & Resort.
Apart from its continued expansion, DraftKings’ shares also continue to perform well thanks to its favorable Q4 2022 results, as well as its raised financial outlook for 2023. By February 17th, 2023, DraftKings’ stocks had climbed by 15% at $20.54, thus giving DraftKings stocks an estimated market value of more than $8 billion.
This rise in stocks came after the American Gambling Association announced that DraftKings was the most downloaded app in the country during this year’s Super Bowl Sunday. DraftKings continued effort to launch in newly legalized spobrts betting states has also greatly helped to boost the brand’s presence.
For its Q4, DraftKings reported that its revenue had grown by 81% to reach $855 million compared to the $473 million that was recorded during the same period in 2021. DraftKings attributes its continued positive performance to continued customer acquisition, engagement, and retention strategies. Owing to its stellar revenue performance, the brand announced that it had raised its fiscal year 2021 guidance to between $2 billion to $3 billion.
In line with its expansion plans, DraftKings has also continued forging strategic partnerships that will see the brand continue to cement its presence in the North American gambling market. For instance, at the beginning of the year, DraftKings entered into a partnership deal with Ontario-based Gamres.
Gamres is one of the most established consulting and research firms in the country. Gamres and DraftKings will collaborate to introduce the Positive Play Scale tool to its RG program. This tool is the first-ever standardized scale that will measure beliefs and behaviors among DraftKings customers.
This new tool will help DraftKings provide a much safer gambling environment for its customers thanks to improved play. This strategic partnership has been forged in line with DraftKings’ responsible gaming program, which is one of the most established in the gambling market.
In February, DraftKings and PlayAGS signed a new content partnership. As per the deal, AGS will supply DraftKings Casino with more than 20 of its slot titles, which is expected to supercharge the brand’s presence in the highly competitive North American gambling market.
These games are already available to DraftKings customers in Garden State. Some of the AGS titles that will be available for DraftKings customers include Capital Gains, Fu Nan Fu Nu, Jade Wins, as well as River Dragons. 2 additional games from the Imperial 88 game series, namely Tiger Lord and Peacock Beauty, have also been included in the deal.
As the year progresses, expect DraftKings to keep making moves and strategic partnerships intended to grow and cement its presence. The sports betting market has become more crowded than ever. As such, DraftKings and other more established sports betting brands have to work harder than ever to maintain the customers they have worked so hard to acquire.