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DraftKings has become a reputable and a public company. This is after emerging with one of the best shell companies sometime back in April. Even though the unconventional IPO process has been in existence. Investors have not seized to bid up DraftKings stock price.
The market is placing its bets on the immense growth opportunity. And this might take place in a few years to come as sports betting is now legal in most parts of the USA.
One might think that the DraftKings is being overhyped and some might argue that are they truly living up to expectations in the market.
Online Sports Betting in the USA
Since it was found in 2012 DraftKings has been facilitating fantasy daily sports. Fantasy sport is amongst online games. This is where gamblers structure imaginary team rosters and earn points in the process. These points will only come through if an athlete performs well during their game.
However, DraftKings will collect revenues from gamblers who participate in the contest. They attract players by offering them cash prizes if they manage to construct winning teams during the process.
Even though daily fantasy is a good business for real money, but a larger growth chance exists for its rivals. This is to make them work as bookmakers in the legal sports betting in the USA.
Sports betting in the USA has been long illegal but not until 2018 when a new law was amended. But since the gambling bill was amended, 14 states have legalized online sports betting. At the same time, the gambling industry has managed to operate in 9 states.
As if that’s not enough, there are other states that are expected to be part of the gambling space in the coming years.
In addition, DraftKings generated $88.5 million in revenue. This amount to 12.5% growth rate. The growth rate is expected to propel sports betting inclines in different states.
Final Thoughts
To this very day, online sports gambling will likely increase the DraftKings stock price exchange at the market. And there are significant signs that the industry will tremendously grow to over $20 billion. This will be a massive revelation for the investor to place their bets on DraftKings stock price
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