FanDuel claims the crown and leaves DraftKings behind
With its month-on-month results in Ohio, FanDuel surpassed DraftKings and other competitors.FanDuel and DraftKings are the most popular sports betting sites in the US.
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DraftKings’ $1B tax goal for 2025 falls short
On Thursday (1 August), DraftKings announced that from 1 January 2025, customers will be charged a winning tax of more than 20%.
The next day, the company announced that it expects between $900m-$1bn (£781m/€917m) in EBITDA in fiscal year 2025, which began on 1 July.
DraftKings founder Jason Robins has strong confidence in the company and does not think this new decision can have a negative impact.
He commented on the decision:
“It makes a huge difference to our ability to make a reasonable margin,” he told investors on Friday. “And more importantly [it will help us] to compete with the illegal market that pays no taxes and can invest 100% of revenue into their products.”
Although this new decision received negative reactions from bettors and analysts, Robins remains undoubted:
During the Q&A portion of the earnings call, Robins said:
“It is an important step that consumers will ultimately understand. If they feel the product and experience is better, then they would rather pay for that than go somewhere else that doesn’t have as strong a product.”
The company also managed to gain access to the market in Washington DC, introduced several new player props, and expanded progressive parlays.
In addition, its iGaming customer base received a significant boost from the recent Jackpocket purchase.
Nonetheless, revenue for the second quarter came in at 1.10 billion dollars which was slightly lower than the projected figure of 1.12 billion dollars while adjusted EBITDA stood at 128 million dollars falling short of expectations by 129.3 million dollars only.
The board approved a $1 billion stock repurchase plan but stock prices dropped after post-call trades between $34 and $30.94 were observed.
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DraftKings to acquire Simplebet to boost AI game
DraftKings announced its plans to acquire Simplebet to boost its wagering options together with AI game.Founded in 2012, DraftKings is an American gambling company,...
