Despite all of the attention with the fresh US online gambling industry bursting through America’s doors, the stock price of the market has fallen a whopping 70% over the past year.
Being one of the premier US sports betting platforms, does DraftKings have causes for concern of the market cap drop?
The Legal Sports Report podcast host Matt Brown is joined by regulars Adam Candee and Dustin Gouker to discuss the drop in value of the market and the dangers that could pose for sportsbooks across the US.
“The stock has fallen on hard times, it has been under 20 for a little while,” said Gouker.
“What people are looking at here asking ‘whether there’s a path to profitability’, but DraftKings as well now, is spending a lot of money. The way you create profitability is one; you either spend less money or two; you go and get more to try and continue to grow market share. The big question here is what is DraftKings going to do?”
Panellist Candee reiterates Gouker’s sentiment and questions whether second/third tier sportsbooks such as PointsBet make it through the stock market drop.
“What is the future for not just PointsBet, but for all these second to third tier operators in the US, is there a second life?,” remarks Candee.
The podcast also delves into a tribe of people looking to block online gambling in California, daily fantasy sports finally being recognised as constitutional and the uncertain world of offshore sportsbooks.