In Florida online sports betting legislation has been passed, but it is currently is the courts after the Seminole Tribe claimed that the Indian Gaming Regulatory Act had been violated. While many states have legalized online sports betting, there are several very large ones that have not yet taken bets, including California, Texas, and Florida. Eight states, meanwhile, have current ballot initiatives or active legislation looking at the topic. While DKNG is known for its daily fantasy sports offering, its biggest opportunity is in the continued legalization by states of online sports and casino betting.Īccording to the American Gaming Association, 33 states and Washington DC currently have live, legal online sports betting, while 3 have passed legislation making it legal.

The company operates under the DraftKings name as well as Golden Nugget, following its acquisition last year of Golden Nugget Online Gaming (GNOG). Users play against each other, and DKNG simply takes a cut. Many games have random number generators associated with them that have a set return to player (RTP) payout, while games like live dealer blackjack have traditional odds built into them favoring the casino.įor daily fantasy sports, the company simply takes in more entry fees than it pays out to the winners. Revenue for these game are also generated through the hold.

With its online casino, DKNG offers a number of traditional casino games such as blackjack, roulette, baccarat and slot machines, as a well more video game type offerings such a Rocket, where users must cash out of their bets before a rising rocket crashes. The sportsbooks create odds and will move the odds in order to try to even out the betting action. While not always readily apparent, sportsbooks take a cut on the bets they bring in known as the vig and generally aim to have an even amount of action on both sides of the bet, as not to take a side. This is achieved in slightly different ways based on its offerings. The company generates revenue by taking in more money in bets than it pays out, which in the gambling industry is commonly referred to as the hold. The company also designs the software to enable these activities. It offers sports betting, online casino games, and daily fantasy sports.

Company ProfileĭKNG is an online fantasy sports and gambling platform operating in the U.S. Until then, DKNG stock is a speculative bet. However, it needs to prove that it can get to EBITDA and free cash flow positive and still grow. The opportunity in front of DraftKings ( NASDAQ: DKNG) is clear.

Golden nugget online casino stock