For in-depth and deep dive research on the casino and gaming sector, subscribe to The House Edge . New: Free excerpts from our book in progress "The Smartest ever Guide to Gaming Stocks" - free to existing members and new subscribers.Howard Jay Klein has 30 years of experience as an executive and consultant in major casino operations. His background includes: Ballys, Trump Taj Mahal, Mohegan Sun, and Caesars Palace in Las Vegas. He is a value investor first, using management quality to inform his investment ...

Subscription Service and Market Strategy - DraftKings is testing a $20-per-month subscription service in New York, offering customers up to a 100% profit boost on winning parlays [1] - The service aims to enhance customer experience by creating more excitement and value in parlay offerings [2] - New York is a key test market due to its strong performance in online gambling and high sports betting tax rate of 51% [2] - The company has refined promotional strategies in high-tax states to target lower-value customers more efficiently [3] Growth Challenges and Customer Retention - DraftKings faces challenges from increasing competition and unpredictable customer acquisition costs [4] - The company focuses on managing promotional spending efficiently while attracting and retaining high-value customers [4] - Reactivation strategies include CRM and retargeting treatments, as well as event-driven activations during big moments [5] Industry Trends and User Experience - The online gaming industry is booming, driven by companies like DraftKings and the rise of digital poker and online casinos [5] - Enhancing user experience, particularly in the payout process, is critical for retaining players [6] - 79% of gamblers prefer instant payouts, but less than half of players currently have access to them, highlighting a gap between expectations and reality [6]

Subscription Service Launch - DraftKings is testing a new subscription service called DraftKings Sportsbook+ which offers paying customers enhanced odds on winning parlays [1] - The service costs $20 per month and launched on Dec 28 for select customers in New York [2] - The subscription provides up to a 100% profit boost on winning parlays with boosts ranging from 10% for a two-leg parlay to 100% for an 11-leg parlay [2] - The maximum eligible bet is $25 [2] Market and Tax Considerations - New York is a strong testing ground for DraftKings as it is one of the top performing markets for online gaming [2] - Sports wagering taxes in New York are 51% tied with New Hampshire for the highest rate [3] - DraftKings previously announced it would add a small tax to customers in states with multiple operators and a tax rate over 20% but reversed course in August [3] Industry Impact and Strategy - DraftKings appears to be the first US operator to launch a subscription service in the sports betting industry [4] - Parlays are a profitable and growing area for sportsbooks [4] - The subscription service aims to enhance the fan experience by creating more excitement and value for parlay offerings [4] User Engagement and Expansion - DraftKings is offering the first month free with the subscription kicking in afterward [5] - The service is currently only available in New York but the company will consider expanding to other states [5]

Investors in DraftKings Inc. (DKNG) need to pay close attention to the stock based on moves in the options market lately. That is because the Jan 17, 2025 $7.50 Call had some of the highest implied volatility of all equity options today.What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also m ...

Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?Let's take a look at what these Wall Street heavyweights have to say about DraftKings (DKNG) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.DraftKings currently has an average brok ...

DraftKings TodayDKNGDraftKings$38.34 -2.01 (-4.98%) 52-Week Range$28.69▼$49.57Price Target$51.00Add to WatchlistDigital sports betting and iGaming app provider DraftKings Inc. NASDAQ: DKNG has been in hypergrowth mode through 2024 but continues to lose money and even issued downside guidance for 2024. The company, along with competitor FanDuel, owned by Flutter Entertainment plc NYSE: FLUT, faces further scrutiny over anticompetitive practices. United States Senators Peter Welch and Mike Lee want the U.S. ...

When I last wrote about DraftKings ( DKNG ) on January 30, 2024, I gave it a hold recommendation, primarily based on valuation and some doubts about it continuing to grow revenue and profitability simultaneously. That call has proved correct soI have been a Merchant Seaman that has traveled the world for over 30 years. Within the last 15 years, I developed a very intense interest in investing. I learned a lot of what I know about investing from The MF. Also because I have a engineering background, I often t ...

Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool. ...

DraftKings Inc (NASDAQ:DKNG) is 1.8% lower to trade at $39.18 at last check, pulling back toward its +10% year-to-date level and heading for a seventh-straight loss. This rut present an intriguing buying opportunity, if past is precedent, as the sports betting stock just pulled back to a historically bullish trendline.According to data from Schaeffer's Senior Quantitative Analyst Rocky White, DraftKings stock is now within striking distance of its 80-day moving average. For the purpose of this study, White ...

Based on my analysis, there is upside potential for DraftKings (NASDAQ: DKNG ) for investors to capitalize on. From an industry perspective, DKNG is poised to further benefit from the continued expansion of the total addressable market. From a company perspective, weWith over 7 years of experience in the buy-side, my investment philosophy is rooted in both fundamental bottom-up analysis and quantitative modelling. My forte lies in identifying perception gaps to capitalize on over-pessimism and excessive exu ...