We are in the midst of football season, and the tension among sports betting companies is almost more exciting than the games themselves. DraftKings (NASDAQ: DKNG) is on the top of investors’ radars after a game-changing offer was made to buy Entain (OTCMKTS: GMVHY). As a result, the latest DraftKings stock news is that shares are dropping, currently down over 23% since earlier this month.

The company went public via SPAC in April 2020. Since its IPO debut, DraftKings has been aggressively pursuing the crown of becoming a sports betting leader.

With that being said, the Entain news is significant because the company is a 50/50 partner with MGM (NYSE: MGM) on the BetMGM platform. Not only that, but MGM will need to approve the deal before it can be completed.

On top of this, a record number of Americans (45.2 million) are planning on betting on the current NFL season. This is a good sign of what’s to come as more states are legalizing sports betting.

Will DraftKings stock grow along with the sports betting industry? Keep reading to find out.

DraftKings Stock News

A Potentially Massive Deal for Sports Betting

You know how a deal comes along every once in a while that completely disrupts an entire industry? Sort of like when Disney (NYSE: DIS) bought out Pixar and brought the animation studio to life. So just how big is the latest DraftKings stock news?

Maybe not to that extreme, but the DKNG – Entain deal can be a massive deal for DraftKings stock investors. Is the deal going to go through? Nobody knows. But, here’s what we know so far.

  1. MGM and Entain have a 50/50 interest in BetMGM, the sports betting platform.
  2. DraftKings has approached Entain about acquiring its stake.
  3. MGM released a statement clarifying it will need to approve the deal.

If the deal goes through, it can have significant effects on the sports betting industry. For instance, FanDuel, which is under the control of Flutter Entertainment (OTCMKTS: PDYPY), is currently leading in market control.

According to some reports, FanDuel’s market share could be upwards of 50%. However, with DraftKings controlling second, and BetMGM in third, the transaction could shake things up.

On the other hand, MGM could always turn down the offer. In that case, they could either a) remain 50/50 partners or b) offer to buy out the other half themselves.

DraftKings Stock News – DKNG Earnings Growth

Not only is the company growing in terms of acquisitions, but it’s also strengthening its financial position. In recent DraftKings stock news, the Q2 earnings report showed impressive growth across key metrics. Here are a few highlights:

  • Revenue grew 297% to $298 million from last year. The growth was fueled by higher levels of fan engagement on the platform.
  • Average paid monthly users increased to 1.1 million. That’s an increase of over 115%.
  • Not only that, the average revenue per monthly user advanced to $80, an increase of 23%.
  • Despite the revenue growth, the company still posted a net loss of $305 million.

Although it’s good to see the top-line growth, the company still has relatively high operating costs, limiting its ability to become profitable. With that in mind, the sports betting company is still raising its guidance for the rest of 2021.

The company is now expecting sales for 2021 to reach between $1.21 – 1.29 billion. The increase is because of unexpectedly strong sales this past quarter and new acquisitions.

Introducing ‘DraftKings Marketplace’

If you haven’t heard of them yet, NFTs are the latest internet craze. As a matter of fact, in March, an NFT was sold for $69 million by an artist named Beeple.

Having said that, DraftKings is launching its ‘DraftKings Marketplace,’ where users can buy and sell authentic digital assets. The marketplace acts as a “digital ecosystem” where specific NFTs will be dropped and featured. On top of that, the platform will also serve as a secondary market.

The company partnered with Autograph, an NFT company co-founded by Tom Brady. Furthermore, in Ebay’s first State of Trading Cards Report, the company noted sports as one of the top categories, with basketball card sales growing over 300% in 2020. Given this information, DraftKings has a considerable opportunity to expand its position in the online sports marketplace.

The business development is exciting as the company has exclusive deals with sports stars such as:

  • Tom Brady
  • Wayne Gretzky
  • Tony Hawk
  • Derek Jeter
  • Naomi Osaka
  • Tiger Woods

So far, the feedback has been incredible for the sports NFT marketplace. The Tom Brady exclusive edition sold out instantly, indicating high demand for digital assets. On top of that, the company expanded access to the market to users in Canada before launching the Wayne Gretzky NFT, which sold out within minutes.

Additional strategic business developments and DraftKings stock news ahead…

Strategic Business Developments

But wait, there’s more… DraftKings has been busy making strategic moves to position itself as a leader in sports gambling. The company has made several acquisitions and other investments to increase its market share.

Simplebet Agreement – DraftKings entered into an agreement with Simplebet to offer its micro-betting technology to users. The deal will allow DraftKings users to get even further involved in the game.

Golden Nugget Gaming Acquisition – The company is increasing its iGaming position with its latest acquisition of Golden Nugget Gaming. The move gives DraftKings an entry into a market potentially worth $295 billion by 2026.

Genius Sports Agreement – DraftKings has also strengthened its position by signing a new supply agreement with Genius Sports. The deal states Genius will provide sportsbook data, among other content, to the company.

DraftKings Stock News: Where Does DKNG Go From Here

There’s a lot of information to take in and process if you are looking to invest in DraftKings stock. The sports gambling provider is doing everything in its power to ensure it remains competitive. However, with solid competition, can DKNG remain a threat?

DraftKings stock price is up over 420% since the company went public through a SPAC. But, most of the share price gains are from the previous year. In 2021 DKNG stock is down nearly 10% despite the positive growth.

With a potentially massive deal on the line, DraftKings can quickly become the leader in sports better. And yet, the deal’s fate lies in the hands of one of the company’s biggest competitors in MGM.

Another thing to consider is that DraftKings is still losing money. Even with the recent revenue growth, the company will need to do more to become profitable.

One thing is for sure, DraftKings has a big believer in Cathie Wood from ARK Investments. Cathie recently loaded up on DKNG shares on a recent dip. DraftKings stock is currently 18th in the ARKK Innovation ETF, with over 10.5 million shares.

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