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DraftKings raises guidance, acquires Golden Nugget Online Gaming in $1.56 billion deal

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By Weston Blasi

Sports betting operator DraftKings /zigman2/quotes/213120645/composite DKNG -4.62% reported $298 million in revenue for the second-quarter last Friday, up from $71 million a year ago.

DraftKings also claimed its monthly players increased 281% year over year , something that surprised the the company’s CEO Jason Robins.

“We were worried in the last 6 months that if the economy reopened we would see some softening but we actually haven’t seen that at all,” Robins told MarketWatch on Friday. “Everything is still rapidly increasing every subsequent month.”

To Robins, the stories that more people were betting during the COVID-19 pandemic because they were at home more often were “anecdotal.”

See also: United, Google ask employees to get vaccinated before returning to work

Those stories seem to carry less weight as DraftKings continues to see growth despite parts of the United States economy opening over the last few months.

“We couldn’t tell how much of that was general momentum with DraftKings and how much of that was people being bored at home. We think it shows we have strong momentum.”

DraftKings still logged a loss — the company’s loss was 76 cents a share for the three months ended June 30 , compared with a year-earlier loss of $1.80, and its adjusted loss was 26 cents a share. DraftKings also disclosed it is complying with an SEC subpoena concerning allegations by short seller Hindenburg .

DraftKings also raised its revenue guidance for the fiscal year to between $1.21 billion to $1.29 billion, from between $1.05 billion to $1.15 billion previously for last fiscal year.

See also: Big Tech is suffering from a ‘Great Resignation’ of workers, who say ‘It’s a good time to leave’

The company’s increased revenue guidance is irrespective of states on the verge of allowing legal mobile wagering like New York Connecticut Arizona, Louisiana, Maryland, and Wyoming, which make up 13% of the U.S. population.

“The guidance we posted doesn’t even include those states,” Robins confirmed to MarketWatch.

On Monday, DraftKings announced plans to acquire Golden Nugget Online Gaming in all-stock deal valued at $1.56 billion. Robins spoke to MarketWatch prior to the announcement that DraftKings would be acquiring Golden Nugget Online Gaming /zigman2/quotes/212688524/composite GNOG -5.42% .

As of last Friday’s trading, DraftKings stock was up 3.83%, but down 5.89% over the past three months while the S&P 500 /zigman2/quotes/210599714/realtime SPX -0.54% has gained 6.4% over that same period.

US : U.S.: Nasdaq
$ 19.39
-0.94 -4.62%
Volume: 43.11M
Jan. 27, 2022 4:00p
P/E Ratio
Dividend Yield
Market Cap
$16.25 billion
Rev. per Employee
US : U.S.: Nasdaq
$ 6.98
-0.40 -5.42%
Volume: 797,198
Jan. 27, 2022 4:00p
P/E Ratio
Dividend Yield
Market Cap
$577.32 million
Rev. per Employee
-23.42 -0.54%
Volume: 3.04B
Jan. 27, 2022 5:00p

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