DraftKings (NASDAQ:DKNG) is set to introduce its highly-rated mobile sportsbook in Kentucky on September 28, 2023. The company secured an agreement in the previous month with ECL Corbin, LLC, a subsidiary of ECL Entertainment, LLC, which operates as The Mint Gaming Hall at Cumberland (Williamsburg) and Cumberland Run (Corbin). This agreement grants DraftKings permission to offer online sports betting services within the state.
Starting from September 28, 2023, eligible individuals in Kentucky can utilize DraftKings’ online sportsbook to place bets on both college and professional sports, encompassing NCAA, NFL, MLB, NBA, and more.
To mark this significant launch, DraftKings has partnered with Matt Jones, a well-known host from Kentucky Sports Radio. Matt Jones will broadcast his show live from The Mint Gaming Hall Cumberland in Williamsburg and place the inaugural bet using the DraftKings Sportsbook app.
In addition to the online sportsbook, sports enthusiasts in Kentucky have the option to place in-person bets at the newly inaugurated DraftKings Sportsbook located within The Mint Gaming Hall Cumberland in Williamsburg and Cumberland Run in Corbin. These initiatives are expected to contribute to the company’s revenue growth in the coming quarters.
The Zacks Consensus Estimate for DraftKings’ 2023 revenues stands at $3.53 billion, reflecting a year-over-year growth of 57.43%. The Zacks Consensus Estimate for a loss of $1.62 per share indicates a year-over-year increase of 48.73%.
DraftKings Faces Competition in Kentucky
According to a report by LSR, Kentucky’s sportsbooks are expected to generate approximately $1 billion in betting volume and around $100 million in gross revenues by the end of the year. This will bring Kentucky in line with the rest of the country, contributing to a record-breaking year for the broader industry, which is projected to exceed $100 billion in nationwide betting activity for the first time.
Several major players have entered this growing market, including Flutter Entertainment (PDYPY), Caesars Entertainment (NASDAQ:CZR), MGM Resorts International (NYSE:MGM), and DraftKings.
DraftKings holds a significant competitive advantage due to its strong brand recognition and extensive experience in sports betting and DFS. It is often the first choice that comes to mind when people think about sports betting.
FanDuel Kentucky, a primary rival, shares a similar DFS background and competes closely in terms of revenues and betting activity. Both sportsbooks offer a high-quality user experience through their mobile apps and desktop platforms, outperforming many competitors.
BetMGM Kentucky is another player entering the state’s market, offering a strong deposit match for new users. Both BetMGM and Caesars Kentucky aim to secure significant positions in the market, leveraging their broader entertainment conglomerates with hotels, resorts, and casinos worldwide. Users can redeem rewards at these locations through their mobile apps, although they lag behind FanDuel and DraftKings in terms of user interface design and could benefit from improvements.
DraftKings shares have gained 154.8% year-to-date, outperforming the Zacks Consumer Discretionary sector’s 3.5% rise. This success is attributed to their rewards program, which offers credits back to users through their wagers, as well as a wide range of game specials, bonus bets, parlay boosts, and more.
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