Shares of DraftKings (DKNG) tumbled Friday after the online sports gambling platform cut its profit forecast and announced it would put a surcharge on winnings for bettors in high-tax states as a way to boost earnings. In a letter to shareholders, the company said that several states, notably Illinois, have put a high tax rate on gambling winnings. To address that, DraftKings said it plans to implement "a gaming tax surcharge on a customer's Net Winnings in any state with a tax rate above 20% that has multi ...

The sports gaming industry is at a crossroads, with technological innovation, regulatory changes, and consumer habits all combining to drive rapid evolution. And all three of those themes were central to executive commentary during DraftKings' second-quarter 2024 earnings call Friday (Aug. 2). "We very efficiently acquired many more new customers than we expected and saw continued healthy existing customer engagement in the second quarter," DraftKings Chief Executive Officer and Co-founder Jason Robins said ...

DraftKings (NASDAQ:DKNG) caught DKNG stock investors off guard on Friday when the sports betting company announced a new gaming tax surcharge in its latest earnings report. During that report, DraftKings cofounder and CEO Jason Robins revealed plans to implement a gaming tax surcharge. He said this would be for states with high taxes that already have several mobile sports betting operators. According to Robins, this gaming tax surcharge won't go into effect until the start of 2025. He claims it could bring ...

Shares of DraftKings Inc DKNG tanked in early trading on Friday, after the company reported its secondquarter results. The results came amid an exciting earnings season. Here are some key analyst takeaways. Benchmark analyst Mike Hickey reaffirmed a Buy rating, while cutting the price target to $41. Truist Securities analyst Barry Jonas maintained a Buy rating and price target of $53. JMP Securities analyst Jordan Bender reiterated a Market Outperform rating and price target of $52. Goldman Sachs analyst Be ...

Financial Data and Key Metrics Changes - DraftKings generated $1.104 billion in revenue for Q2 2024, representing a 26% year-over-year growth [9] - Adjusted EBITDA for the quarter was $128 million, with customer acquisition exceeding expectations as new OSB and iGaming customers increased nearly 80% year-over-year [9][10] - The company revised its fiscal year 2024 revenue guidance to a range of $5.050 billion to $5.250 billion, reflecting a year-over-year growth of 38% to 43% [11] - Adjusted EBITDA guidance for fiscal year 2024 was revised down to $340 million to $420 million, influenced by increased tax rates in Illinois and the inclusion of Jackpocket [11][12] Business Line Data and Key Metrics Changes - The structural Sportsbook hold percentage improved year-over-year to approximately 10% [10] - Adjusted gross margin for Q2 was 43%, primarily due to better-than-expected customer acquisition and promotional reinvestment [10] - The integration of Jackpocket is on track to generate positive adjusted EBITDA in fiscal year 2025 [6] Market Data and Key Metrics Changes - The company anticipates a healthy customer acquisition environment to continue through the latter half of the year, indicating a potentially larger US online gaming opportunity [5] - The launch of Sportsbook in Washington, DC, contributed to the updated revenue guidance [11] Company Strategy and Development Direction - DraftKings plans to implement a gaming tax surcharge in high tax states starting January 1, 2025, which is expected to enhance adjusted EBITDA [5][6] - The company is focused on enhancing its product offerings, including new features for Sportsbook and iGaming, and aims to double the number of new games released this year compared to last year [7] - The Board authorized a share repurchase of up to $1 billion, reflecting confidence in the business trajectory and expected free cash flow generation [6] Management's Comments on Operating Environment and Future Outlook - Management expressed no signs of consumer weakness and noted strong customer acquisition and engagement [31] - The company expects adjusted EBITDA in the range of $900 million to $1 billion for fiscal year 2025, driven by underlying business momentum and customer acquisition trends [13] - Management emphasized the importance of transparency with customers regarding the gaming tax surcharge and its impact on pricing [35] Other Important Information - The company divested VSiN and shuttered Reignmakers to focus on core operations [40] - DraftKings is not currently pursuing organic growth in Latin America but would consider M&A if opportunities arise [40] Q&A Session Summary Question: Discussion on the surcharge strategy and competitor reactions - Management believes each company will act in its best interest regarding the surcharge, and they will monitor the situation closely [14] Question: Impact of Illinois tax increase on future models - Management indicated that strong customer acquisition and engagement trends should offset the Illinois tax increase, maintaining adjusted EBITDA expectations [15] Question: Changes in customer acquisition costs and engagement - Management noted no increase in existing player costs, with new customer acquisition driving the current growth [21] Question: Plans for higher new user acquisition costs - Management stated that the majority of marketing spend is flexible and can be adjusted based on market conditions [24] Question: Signs of consumer weakness in older states - Management reported no signs of consumer weakness and noted strong cohort behavior [31] Question: Strategy for Latin America - Management indicated a focus on the US market and would consider M&A for Latin America if pursued [40] Question: Contribution profit margin differences in high tax states - Management acknowledged that contribution margins are significantly affected by high tax rates, particularly in states like New York [58]

DraftKings' Q2 report arrived with some notable positives, but investors aren't liking the big picture. DraftKings (DKNG -9.75%) stock is getting hit hard in Friday's trading. The online gambling specialist's share price was down 11.6% at 11:30 a.m. ET, according to data from S&P Global Market Intelligence. DraftKings published its second-quarter results after the market closed yesterday, delivering mixed results. While the company's earnings beat expectations, sales for the period fell short of Wall Street ...

Mobile betting powerhouse DraftKings is planning a tax on consumers in states with the highest sports betting tax rates, as the company looks to boost profit. The company announced Thursday that starting next year it will implement a gaming surcharge on winning bets in states with multiple betting operators and where the tax rate is above 20%. That includes Illinois, New York, Pennsylvania and Vermont. "We decided that the best course of action is to do what really every other industry [does] — whether it's ...

| 1 Q2 2024 EARNINGS PRESENTATION August 2, 2024 Legal Disclaimer Forward-Looking Statements This presentation contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, including statements about DraftKings Inc. ("DraftKings", the "Company", "we", "us" and "our") and its industry that involve substantial risks and uncertainties. All statements, other than statements of historical fact, c ...

DraftKings NASDAQ: DKNG is in the consumer discretionary sector and is the 17th largest U.S. company in the Hotel, Restaurants, and Leisure industry, with a market capitalization of $17 billion. It is underperforming its sector so far in 2024, with a total return of 0.7%. The Consumer Discretionary Select Sector SPDR Fund NYSEARCA: XLY has returned 2.7%. The company reported Q2 2024 financial results on Aug 1, 2024. I'll start by going over the operations of the business and then review the earnings report. ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from__________ to ___________. Commission file number 001-41379 DRAFTKINGS INC. (Exact name of registrant as specified in its charter) Nevada 87-2764212 (State or other jurisd ...