A Record NFL Season for DraftKings (DKNG)
The NFL season works like a holiday season for DraftKings (DKNG). Fall is when the company gets the most new customers and makes the most money, especially when all four major sports run at the same time. Bettors are expected to wager around $35 billion this season, another record. This year DraftKings (DKNG) can offer its new predictions product to many customers and in many places that did not have access to it before.
Prediction Markets Added to a Super App
DraftKings (DKNG) invested in AI for five years before it became a daily topic. At its investor day, the company laid out a "super app" that puts predictions and the sports book in one app.
Will the prediction market be busier or more profitable than the sports book? It is too early to tell. This is an early stage for a new industry. Public estimates put the total market size a bit smaller for predictions, but that view could change with more data. Growth in that area has been strong in recent months, especially now with the NFL season underway.
Customer Growth
Last year DraftKings (DKNG) had around 12 million total active customers. With new states now open for predictions, the company expects to beat that number, but has not given a public target for active customers this year. Betting is allowed state by state - some states permit it, some do not - and the prediction market widens that reach.
Being the Hub of Gambling
DraftKings (DKNG) sees itself as the top US company in this space. It offers sports book, predictions, online casino, lottery, fantasy sports, and more, giving customers many ways to bet on what they follow. Some products carry a regulatory component. The goal is for customers to view every DraftKings (DKNG) product as the best available, so they never feel a need to use multiple apps and can get everything from one place.
Sports Viewing and the Leagues
Watching sports has become fragmented. The NFL, with Roger Goodell still in charge, may repackage how Sunday and Sunday night games are shown. More viewers help DraftKings (DKNG), and the company argues it also drives that viewership. The relationship between DraftKings (DKNG) and the NFL, plus other sports leagues, has been beneficial as leagues expand into streaming. Many fans follow the leagues because they enjoy sports betting and now prediction markets, and they want to watch the game while doing it. This is not for everyone - not all viewers bet - but a large share of the audience, especially the most avid fans, do. The leagues have embraced engaging that part of their fan base, which is key.
Integrity and Responsibility
DraftKings (DKNG) expanded its deal with IC360 (integrity compliance 360) to strengthen responsible play and protect athletes from harassment. Effort has gone into responsible engagement inside the apps, but the product also shapes how people behave outside them. People who are really into betting need to treat it as entertainment, do it responsibly, and respect the athletes and others in the sport. Fans yelled at players and referees long before betting existed. DraftKings (DKNG) has data that can help identify some of the people who cross the line, and there should be consequences when the company can help flag that behavior.
Super Bowl Pick
On who wins the Super Bowl: no firm call. Seattle looked strong, though it depends on how Sam Darnold performs. The number one bet to win the Super Bowl on DraftKings (DKNG) this year was the Los Angeles Rams, so the public's view will be tested.
