DraftKings eyes prediction market with new business registration
An American gambling company offering sportsbooks and daily fantasy sports services, DraftKings, announced its debut in the prediction markets space by registering a new...
DraftKings gets a ‘Junk’ rating from Fitch
An American gambling company offering sportsbooks and daily fantasy sports services, DraftKings received its first-ever rating from Fitch.
Fitch acknowledges that DraftKings is a market leader in a growing industry with solid financials and strong cash flow. However, the company is heavily reliant on online sports betting—a competitive and unstable sector. That’s why the rating isn’t higher.
Fitch commented:
“Fitch forecasts DraftKings’ revenue will grow 36% in 2025, followed by high single-digit growth, assuming no new online betting legalizations under the base case. Revenue growth is expected to be driven primarily by normalization in hold, higher revenue per user, and increased parlay utilization. Fitch also believes DKNG’s active user growth will improve as existing jurisdictions continue to expand and DraftKings cross markets to Jackpocket users. These growth levers result in high flow through to EBITDA, driving margin expansion.”
At the same time, DraftKings announced a new $500 million loan. Moreover, the company ended last year with nearly $800 million in cash and manageable debts.
Fitch added:
“We anticipate DraftKings’ leverage to remain modest, benefiting from minimal debt exposure and robust cash generation, which supports its strategic initiatives. This financial strength contrasts with some peers, allowing DraftKings to invest heavily in marketing and innovation to maintain its competitive advantage in a dynamic and evolving industry landscape.”
DraftKings’ revenue and earnings are growing, putting it in a good position to pay off a $1.15 billion convertible note by 2027.
DraftKings extortion lawsuit moves forward
A New York federal court is allowing VIP player Steven Jacobs' lawsuit against DraftKings to move forward.Jacobs sued DraftKings last June, claiming the company worked...
