Premier U.S. sportsbook DraftKings, still patently under-valued, with its stock hovering around the US$27 mark, when investment gurus say it should be worth at least twice that, tried to bridge the credibility gap today by announcing a grand up to US$80 billion “opportunity” built around a soon-to-be-launched prediction markets Super App.
The app, under the DraftKings Sports & Casino brand, will consolidate DK’s market dominant sportsbook, currently operating in some 27 U.S. States, its new prediction market offering, DraftKings Predictions, and casino and lottery offerings within a single account and wallet structure, the Massachusetts-origin company said in a media statement.
And they predicted that the new app will generate some US$55 billion to US$80 billion by 2030 (£41.39bn-£60.21bn).
March Madness Launch
Further details are to be shared at a virtual press conference scheduled for 9am EST.
According to DraftKings, the app opportunity is underpinned by “continued state-level legalisation of sportsbooks and iGaming, growth within existing regulated jurisdictions and the expansion of DraftKings Predictions”.
Under current legislation, or non-legislation, the predictions product enables the company to offer sports event contracts in states without regulated online wagering, extending its reach across much of the US market where traditional iGaming and sportsbook products are not permitted.
Access to specific products within the Super App will remain jurisdiction-dependent, in line with local regulations, DraftKings emphasised in their press statement.
Phase one of the integration is expected to coincide with “March Madness”, the frenzied U.S. betting month powered by the NCCA Division 1 National College Basketball Championships for both men and women .
Further Expansion
“The integrated platform is intended to improve cross-sell between sportsbook, iGaming, lottery and prediction products, while supporting customer retention and operating efficiency,” said DraftKings.
And they added that they will be, increasingly, deploying AI across its platform to drive automation, operating leverage and product development.
Meanwhile, achieving an Adjusted EBITDA margin of at least 30 percent, with potential for further expansion as scale increases, remains a near-term goal.
The company’s updated strategy reflects its focus on “capturing additional iGaming and sportsbook share” in regulated and newly-accessible US markets.
