Why is DraftKings Experiencing Such Sustained Success?
- Mar 31, 2023
- 3 min read
DraftKings, the American daily fantasy sports and betting company, posted better than expected results in February, as the company raised its outlook for 2023. The business is now valued at over $8 billion, a meteoric rise considering it was only founded in 2012, a mere 11 years ago.
Origins
DraftKings was established in 2012 by co-workers and friends, Jason Robins, Matthew Kalish, and Paul Liberman. They shared a love of fantasy sports but decided that daily fantasy sports might be a more entertaining idea.
Initially operating out of a spare bedroom in Paul Liberman's Massachusetts apartment, their first idea was a one-on-one baseball competition, which was launched in March 2012, to coincide with Major League Baseball's opening day.
The founders cleverly used their marketing skills to attract customers and raise the profile of the fledgling business. In 2013, those efforts were rewarded when MLB invested in the business, while 2014 saw DraftKings become the official Daily Fantasy Sports provider for the NHL.
In 2018, the Supreme Court invalidated a federal ban on online sports betting, allowing US states to legalise sports betting and DraftKings to expand its business into new areas. In 2020, the business combined with SBTech, an international provider of cutting-edge sports betting and gaming technologies, and subsequently began trading on the Nasdaq Stock Exchange.
Reasons for DraftKings continued success
DraftKings is now a vertically integrated sports betting and online gaming company with an emphasis on American sports and fans. The company attributed its recent results to improved customer retention, acquisition and engagement in existing states, as well as successful launches of its Sportsbook and iGaming products in new areas. But there are other factors at play here.
Diversification
DrafKings has four key customer offerings:
o Daily Fantasy Sports (DFS)
o DraftKings Sportsbook providing a premier betting experience.
o DraftKings Casino with a wide variety of safe and secure online casino games.
o DraftKings Marketplace, a digital collectibles ecosystem offering curated NFT drops and secondary-market transactions.
The company has expanded to offer players an immersive sports experience covering 15 professional sports in 8 different countries. These include Baseball, American Football, Basketball, PGA Golf, Ice Hockey, Premier League Football, UEFA Champions League, NASCAR, MMA, WWE, Tennis and more. There are even markets for eGaming and reality TV shows, plus a casino that offers all the very latest and most popular casino games and a marketplace for digital collectibles.
Technology
The DraftKings app is easy-to-use, intuitive and simple to navigate, providing fans with a wide variety of betting options, instantly updated lines, online casino games and more. Using the latest technology, DraftKings maintains its market-leading performance by ensuring its customers have the very best choice and experience when interacting with the company. The DraftKings app was the most downloaded sportsbook app in the U.S. on Super Bowl Sunday, as fans turned to their service to bet online on the big game.
Instantly Updated Lines
Their sportsbook is hugely popular with customers as it provides instantly updated lines. This means they are always up to date with all the latest odds and point spreads on the big games and matches, allowing players to make better decisions on their bets.
Online Casino Games
DraftKings provides customers with access to a huge variety of online casino games. This includes all the classics you’d expect, such as Blackjack, Roulette, Poker, Craps and Slots, plus an exclusive list of casino games available only through DraftKings.
Bonuses
New customers benefit from a variety of exciting bonuses if they sign up with the company, including matched deposits and bonus bets. While existing customers are not forgotten about either, with multiple bonuses available to loyal customers.
Innovation
A key driver in DraftKings success is their constant innovation. From their original idea of Daily Fantasy Sports, to using cutting-edge marketing techniques and technology, they are a market leader in more ways than one.
DraftKings recent deal with the MLB highlights this constant innovation. Their expanded partnership with MLB makes them an official sports betting partner of the league, and allows fans with DraftKings and MLB.com accounts livestream MLB games for free using the DraftKings app.
Advertising
DraftKings has been at the forefront of pioneering advertising strategies that have helped make it a household name in the US, and one of the most popular fantasy sports betting platforms in the world. Now, its vast user database is able to provide insights on millions of users, enabling them to continuously improve their marketing strategies and product offerings.
The Future
DraftKings may have come from humble beginnings, but their aspirations are anything but. On the company’s website, their ambition is clear for all to see.
“We’re committed to responsibly creating the world’s favourite games and betting experiences. It's our ultimate vision to build the best, most trusted, and most customer-centric destination for skin-in-the game fans; to develop the most innovative and entertaining real money products and offers; to forever transform the manner in which people experience sports.”
While their competition will undoubtedly be worried, sports fans have every reason to celebrate.
