DraftKings Inc. (Nasdaq: DKNG) today reported financial results for
DraftKings’ and SBTech’s first quarter ended March 31, 2020,
achieved prior to the completion of the companies’ business
combination with Diamond Eagle Acquisition Corp. on April 23, 2020.
Detailed financial data and other information are available in
DraftKings’ 8-K/A, filed today with the Securities and Exchange
Commission.
Through its recent business combination, DraftKings has created
the only vertically integrated sports betting company based in the
United States.
“We are uniquely positioned at the intersection of digital
sports entertainment and gaming in a rapidly growing industry,”
said Jason Robins, DraftKings co-founder, CEO and Chairman of the
Board. “DraftKings recorded standalone Q1 year-over-year revenue
growth of 30% despite the effects of COVID-19. Additionally,
the engagement we continue to see from our customers validates the
connection they have with our content, their passion for our
products and most importantly their loyalty to our brand.”
New Products to Offset COVID-19 Impact
DraftKings continues to make progress on its key priorities
despite the effects of the COVID-19 pandemic. These include
entering new states, investing in product and technology to create
more unique offerings and live betting for American-based sports,
and acquiring and retaining our customers.
The Company has responded to the lack of major sports by
creating new product offerings that are keeping customers engaged,
such as fantasy sports and betting on eNASCAR, Counter Strike, and
Rocket League. DraftKings has also launched a series of
pop culture free-to-play pools contests that cover topics from
democratic debates to TV shows like Survivor, The Last Dance and
Top Chef. DraftKings also recently partnered with MLB on their new
MLB Dream Bracket game.
The Company does not anticipate an impact to FY2021 or long-term
plans due to COVID-19.
U.S. Sports Betting & iGaming Legislative
Landscape
At this time, approximately 14 U.S. states are actively
considering sports betting legislation and DraftKings expects this
momentum to continue as governments begin to focus on reopening the
economy. States that have passed legislation to permit online
sports betting over the past year include Illinois, Michigan,
Tennessee and Virginia.
In Q1 2020, DraftKings launched retail and online sports betting
in Iowa, and recently went live with iGaming in Pennsylvania and
online sports betting in Colorado.
DraftKings is Well Positioned to Build on Its Already
Strong Presence in a Rapidly Growing Market
After the successful business combination and public listing on
April 24th, DraftKings is well capitalized with nearly half a
billion dollars of cash on the balance sheet.
Webcast and Conference Call Details
DraftKings will host a conference call and audio webcast today
at 8:30 a.m. Eastern Time, during which management will discuss
first quarter results and provide commentary on business
performance. A question and answer session will follow the prepared
remarks.
The conference call may be accessed by dialing +1 833-644-0686
for domestic callers or +1 918-922-6762 for international callers.
Once connected with the operator, please provide the conference ID
of “5970145.”
A live audio webcast of the earnings conference call can be
accessed through the investors section of the Company’s website
at investors.draftkings.com, along with a copy of this press
release, the Company’s 8-K/A (which includes financial results),
and a slide presentation. A replay of the webcast will be archived
on the Company’s website.
About DraftKings
DraftKings Inc. (Nasdaq: DKNG) is a digital sports entertainment
and gaming company created to fuel the competitive spirits of
sports fans with products that range across daily fantasy,
regulated gaming and digital media. Headquartered in Boston, and
launched in 2012 by Jason Robins, Matt Kalish and Paul Liberman,
DraftKings is the only U.S.-based vertically integrated sports
betting operator. DraftKings is a multi-channel provider of sports
betting and gaming technologies, powering sports and gaming
entertainment for 50+ operators across more than 15 regulated U.S.
and global markets, including Arkansas and Oregon in the U.S.
DraftKings’ Sportsbook offers mobile and retail betting for major
U.S. and international sports and operates in the United States
pursuant to regulations in Colorado, Indiana, Iowa, Mississippi,
New Hampshire, New Jersey, New York, Pennsylvania and West
Virginia. DraftKings’ daily fantasy sports product is available in
8 countries internationally with 15 distinct sports categories.
DraftKings is the official daily fantasy partner of the NFL as well
as an authorized gaming operator of the MLB and NBA.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, or the Securities Act, and Section 21E of the Securities
Exchange Act of 1934, as amended, or the Exchange Act, about us and
our industry that involve substantial risks and uncertainties. All
statements other than statements of historical facts contained in
this press release, including statements regarding guidance, our
future results of operations or financial condition, business
strategy and plans, user growth and engagement, product
initiatives, and objectives of management for future operations,
and the impact of COVID-19 on our business and the economy as a
whole, are forward-looking statements. In some cases, you can
identify forward-looking statements because they contain words such
as “anticipate,” “believe,” “contemplate,” “continue,” “could,”
“estimate,” “expect,” “forecast,” “going to,” “intend,” “may,”
“plan,” “potential,” “predict,” “project,” “propose,” “should,”
“target,” “will,” or “would” or the negative of these words or
other similar terms or expressions. We caution you that the
foregoing may not include all of the forward-looking statements
made in this press release.
You should not rely on forward-looking statements as predictions
of future events. We have based the forward-looking statements
contained in this press release primarily on our current
expectations and projections about future events and trends,
including the ongoing COVID-19 pandemic that we believe may affect
our business, financial condition, results of operations, and
prospects. These forward-looking statements are not guarantees of
future performance, conditions or results, and involve a number of
known and unknown risks, uncertainties, assumptions and other
important factors, many of which are outside DraftKings’ control,
that could cause actual results or outcomes to differ materially
from those discussed in the forward-looking statements. Important
factors, among others, that may affect actual results or outcomes
include the inability to recognize the anticipated benefits of the
Business Combination; costs related to the Business Combination;
the inability to maintain the listing of DraftKings’ shares on
Nasdaq; DraftKings’ ability to manage growth; DraftKings’ ability
to execute its business plan and meet its projections; potential
litigation involving DraftKings; changes in applicable laws or
regulations, particularly with respect to gaming; general economic
and market conditions impacting demand for DraftKings’ products and
services, and in particular economic and market conditions in the
media / entertainment / gaming / software industry in the markets
in which DraftKings’ operates; the potential adverse effects of the
ongoing global coronavirus (COVID-19) pandemic on capital markets,
general economic conditions, unemployment and DraftKings’
liquidity, operations and personnel, as well as risks,
uncertainties, and other factors described in “Risk Factors” in our
filings with the SEC, which are available on the SEC’s website at
www.sec.gov. Additional information will be made available in other
filings that we make from time to time with the SEC. In addition,
any forward-looking statements contained in this press release are
based on assumptions that we believe to be reasonable as of this
date. We undertake no obligation to update any forward-looking
statements to reflect events or circumstances after the date of
this press release or to reflect new information or the occurrence
of unanticipated events, including future developments related to
the COVID-19 pandemic, except as required by law.
ContactsMedia:Media@draftkings.com
Investors:Investors@draftkings.com
DraftKings (NASDAQ:DKNGW)
Historical Stock Chart
From Jun 2024 to Jul 2024
DraftKings (NASDAQ:DKNGW)
Historical Stock Chart
From Jul 2023 to Jul 2024