The decision by the United States Supreme Court to strike down the federal ban on single game sports betting was a game changer for the gaming industry. This meant that states were given the green light to establish their own rules regarding sports gambling. At the time of this writing, more than half of U.S. states have established legislation that allows for single-game sports betting.
DraftKings (NASDAQ:DKNG) is a Boston-based company that operates a digital sports entertainment and gaming company. This includes a multi-channel sports betting and gaming technologies, operating in 17 countries around the world. Shares of DraftKings have soared 61% in 2023 as of close on March 17. The stock is still down 4.9% year over year.
This company unveiled its fourth quarter and full year fiscal 2022 earnings on February 16, 2023. Monthly unique players (MUPs) rose to 2.6 million average monthly unique paying customers in the fourth quarter of fiscal 2022. Meanwhile, average revenue per MUP increased 42% year-over-year to $109. For the full year, it posted revenue of $2.24 billion – up from $1.29 billion in the previous year.
Looking ahead, DraftKings forecasts that it will be able to deliver positive adjusted EBITDA in fiscal 2024. In the next year, the company projects revenue between $2.85 billion and $3.05 billion. Shares of DraftKings are trading in favourable value territory compared to its industry peers. This stock is still worth snatching up as it rides an impressive wave to start 2023.
