DraftKings DKNG has announced plans to enter into Non-fungible Token (NFT) business. The company aims to cash in on the NFT craze with its new digital ecosystem —DraftKings Marketplace. Apart from enabling the users to access curated NFT drops, DraftKings Marketplace will support transactions in the secondary marketplace.
Post launch, DraftKings expects to provide seamless trading experience for digital collectibles related to sports, entertainment and culture to its existing account holders. Moreover, joining forces with NFT platform Autograph is going to give DraftKings Marketplace exclusive distributing rights for NFT content of that platform.
The sports betting company’s venture into the seemingly lucrative NFT market is expected to boost its shares, which have jumped 4.9% in the in the year-to-date period, outperforming the Zacks Gaming Market industry’s rally of 2%.
Growth Prospects and Competition
Apart from providing access to daily fantasy sports, sports betting as well as online casino opportunities to its 5.5 million cumulative unique paid users, the company is engaged in design, development and licensing of sports betting as well as casino gaming software.
The company has recently taken over Vegas Sports Information Network to strengthen its foothold in multi-platform broadcast and content business. It is also investing heavily in product and technology to beat the competition in the crowded market.
DraftKings Inc. Price and Consensus
DraftKings Inc. price-consensus-chart | DraftKings Inc. Quote
From the end of first-quarter 2020 to Mar 31, 2021, product and technology expenses witnessed a substantial increase of 211.3%. Increase in expenses might weigh of this Zacks Rank #4 (Sell) company’s profits in the near term.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The business of sports betting is highly competitive. Also, competition in the NFT industry is gradually intensifying. DraftKings is facing stiff competition from companies such as Penn National Gaming PENN, International Game Technology IGT and Enthusiast Gaming Holdings EGLX among others.
Nonetheless, with cutting-edge, proprietary technology, the company is continuously focusing on innovative products for real-money games and improved betting experiences to acquire more and more users.
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