Sportsbetting is becoming one of the most significant industries in the United States of America. It’s reached the point where DraftKings is intending to become a publicly-traded company in 2020, which comes after the announcement that they are entering a new partnership with two corporations. This will assist DraftKing’s growth in Pennsylvania, New Jersey, Las Vegas, Washington, and numerous other states. Their latest deal includes DraftKings merging with SBTech and Diamond Eagle Acquisition. Once this partnership is finalized, this fantasy sports betting site will become a regulated online gambling company. Subsequently, they intend to release an IPO onto Wall Street.
When DraftKings first launched years ago, they began as a daily fantasy sports league. It allowed consumers to create their respective online rosters from beloved athletes in various leagues. Players could then engage with online contests, pitting their rosters against other individuals. Depending on the outcome, you could win prizes or cash from DraftKings. Considering that the Fantasy Sports Gaming Association determined that 59 million individuals in the USA engage with Fantasy Sports, it’s a market that DraftKings wants to dominate.
Since becoming legalized in 2018, sports betting has become the main priority for DraftKings. They maintain a 60% market share across 48 states. Their direct rival is FanDuel, who secures 24% of the remaining market. The extra 16% is managed between various sites, which have considerably lower player counters. Their presence has grown in the last twelve months, earning this significant profits in the fantasy sports league. However, going forward, DraftKings wants to take its 60% market share and transfer over to conventional sports betting. This task hasn’t been challenging, with new consumers being acquired and transferred daily. It’s anticipated that by Q2, they will achieve 50% of the sports betting market share where it’s legalized.
The Available States
Multiple states in America have created their sports betting legislation, with New Jersey being the first. Nevada quickly followed after New Jersey implemented its legalized market. It took Pennsylvania roughly four months after Nevada to launch its market, with total revenue from all three states exceeding $1.1 billion annually. The downfall towards legalized sports betting is the considerable tax, which with Pennsylvania, is 34%. It should be noted that Rhode Island, Indiana, New Hampshire, and West Virginia have legalized legislation in their respective senates. We will keep our consumers updated on the latest information regarding sports betting legalization in the United States.