Ontario Sportsbook: DraftKings expects Q2 launch in iGaming market

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Since the launch of the new online casino gaming and sports betting marketplace in Ontario last month, a lingering question has been: Where is DraftKings Inc.?

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While more than a dozen gambling brands have gone live in Ontario’s competitive internet gambling landscape, DraftKings has been a notable exception.

However, reporting its latest earnings on Friday, the operator of Boston-based online sports betting, daily fantasy contests and iGaming said it plans to launch into the regulated Ontario market in second quarter of 2022, which would mean any time through the end of June.

The disclosure was included in DraftKings’ latest earnings press release, which noted that the company was increasing its 2022 revenue guidance from a range of $1.85 billion and $2 billion to $1.925 billion. dollars and 2.025 billion dollars. DraftKings also raised its adjusted earnings before interest, tax, depreciation and amortization (EBITDA) forecast for 2022 from a loss of between $825 million and $925 million to $760 million and $840 million.

“DraftKings’ updated guidance for fiscal 2022 revenue and adjusted EBITDA includes all states in which it was effective as of May 6, 2022, including New York and Louisiana,” the statement read. “This guidance does not include contributions from the acquisition of Golden Nugget Online Gaming, Inc. (“GNOG”) – which was completed on May 5, 2022 – or the company’s planned launch in Ontario in the second quarter of 2022. .”

The company said it expects its all-stock acquisition of GNOG and upcoming launch in Ontario to add US$130-150 million in incremental revenue and negative adjusted EBITDA of US$50-70 million this year.

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Jason Robins on Super Bowl and March Madness performance metrics: The Super Bowl set a single-day record for first-time online sports bettors (77% YoY). For the 1st weekend of March Madness, 1st time online bettors ??42% YOY. $DKNG pic.twitter.com/lebCstfD3J — DraftKings News (@DraftKingsNews) May 6, 2022

Friday’s disclosure sets out a more concrete timeline for the launch of DraftKings in Canada’s most populous province. A spokesperson for the company told Covers last month that it was “working closely with provincial regulators to bring our best mobile sports betting and casino products to Ontario as soon as possible.”

But the launch of DraftKings online sports betting in Ontario likely means the end is near for the company’s daily fantasy sports competitions in the province. Its main rival, FanDuel, shut down DFS operations in the province when it joined the iGaming market, citing regulations that require all players to be in Ontario to participate.

Yet the news means that Ontario’s competitive online gaming market, the first of its kind in Canada, is about to get even more competitive. With more than a dozen legal online sportsbooks already available in the province, the addition of DraftKings and its sizable war chest could once again ramp up the intensity after the opening flurry of publicity and hype. customer acquisition that began on April 4.

IGaming Ontario, the government agency legally responsible for Ontario’s new iGaming marketplace, told Covers late last month that it would not speculate on an operator’s potential launch date.

“That said, iGO expects more operators to join the Ontario market soon,” the agency added.

DraftKings CEO Jason Robins said Friday they plan to move to Ontario “in the near future,” pending regulatory approval. Operators must receive registration from the Alcohol and Gaming Commission of Ontario and sign a contract with iGO before they can legally begin taking bets in the province.

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Although Robins noted that Ontario’s population would make it the fifth largest US state by population, he also acknowledged the presence of “grey market” sports betting, which may be regulated overseas but not by the province.

“Due to the presence of gray market operators, many of whom have been in Ontario for several years, we do not believe the timing of our launch will impact the share we are able to achieve in this province. Robins said on a conference call for analysts and investors.

“A solid pipeline of new jurisdictions to enter”

DraftKings said Friday it is now live with mobile sports betting in 17 states and with iGaming in five states. There is potential for launches this year in other jurisdictions, such as Maryland and Ohio, and then possibly even California in 2023 if a DraftKings-backed ballot measure is successful this year.

In the first quarter, however, DraftKings reported a net loss of $467.7 million, well above the $346.3 million shortfall recorded a year earlier. This is despite DraftKings reporting revenue of $417.2 million for the three months ended March 31, a 34% increase from the first quarter of 2021.

The number of monthly unique paying customers for DraftKings also grew 29% year-over-year to two million in the first quarter.

“DraftKings delivered significant growth in our key revenue and performance metrics,” Robins said in the earnings release. “We see no impact from inflationary pressures on customer demand, and we continue to improve the user experience by adding breadth and depth to our DFS, mobile sportsbook and iGaming products. We are also improving our efficiency in customer acquisition and retention and have a strong pipeline of new jurisdictions to enter.

This article originally appeared on Covers.com, read the full article here

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