DraftKings Plants Seeds in the Garden State, as NJ Sport Calendar Remains Sparse
Posted on: June 23, 2020, 11:45h.
Last updated on: June 23, 2020, 01:38h.
Fantasy sports leader DraftKings (NASDAQ:DKNG) is entering the online fray in New Jersey, as the US sports slate still isn’t close to being back from pre-coronavirus shutdown heights.
Currently, New Jersey and Pennsylvania are the only states permitting internet casinos. But that number is projected to grow as states are scrambling to plug budget gaps created by COVID-19. Data confirm business is booming.
Last month, the return of NASCAR and UFC gave gamblers some US sports to focus on, while resumption of the PGA Tour earlier this month was a boon for DraftKings. But sportsbook operators and their customers are still waiting for the NHL and NBA to resume play, and for Major League Baseball (MLB) to start its 2020 season.
Seizing Growth Opportunities
DraftKings debuted as a public company on April 24. Since then, its stock more than doubled, with analysts’ swelling forecasts for iGaming and sports betting being among the primary catalysts.
As Casino.org recently reported, online slots in the Keystone State raked in $1.06 billion last month, a more than $300 million jump from April. Internet table games posted a May handle of $778.5 million, up more than $150 million from the fourth month of the year. All that activity generated $24 million for state coffers, according to the Pennsylvania Gaming Control Board (PGCB).
DraftKings offers online sports wagering in both New Jersey and Pennsylvania, which are two of the biggest sports betting markets in the US.
A recent study by the International Journal of Mental Health and Addiction confirms that during the coronavirus sports shutdown, many sports bettors didn’t turn to iGaming as a replacement. That suggests the bulk of the revenue increases notched by online casino operators in April and May was likely derived from gamblers that would have otherwise gone to a land-based gaming venue. Still, there are opportunities for companies like DraftKings to convert customers from one form of wagering to another.
A recent DraftKings-led study found that 70 percent of new DraftKings Casino customers place their first bet on DraftKings-branded games, further exemplifying the existing appetite and demand for a modernized customer experience,” according to the company.
As more states approve internet slots and table games, operators with sports betting exposure will be looking to lure to those gamblers to sports, and vice versa.