During a conference call on Friday, Jason Park, DraftKings' Chief Financial Officer, mentioned that the company is gearing up for a launch in Ontario.Ontario sports betting market in May.
During the call,DraftKings Sportsbook Additionally, the company has pinpointed several other regions — such as Ohio, Maryland, and Puerto Rico — where it plans to expand this year.
Nevertheless, DraftKings provided the clearest timeline regarding its operations in Ontario, where both sports betting and online gaming are permitted.launched on April 4 Since that announcement, a key question has revolved around when DraftKings and BetRegal would officially start their operations in the province.
In that same call, CEO Jason Robins stated, 'We anticipate launching in Ontario shortly, contingent upon securing the necessary licenses and regulatory clearance. Ontario accounts for around 40% of Canada’s overall population, and it would rank as the fifth most populous state in the U.S. if it were part of it.'
'That said, we don't believe that the presence of grey market competitors — many of whom have established themselves in Ontario for several years — will significantly affect our market share, regardless of our launch timing.'
On Friday, the company reported an impressive 34% surge in total revenue, reaching $417 million, which was $7 million above their projections. Furthermore, the adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) was also stronger than predicted, with an increase exceeding 12%. However, losses for the first quarter were around $467 million.
This week, DraftKings finalized the acquisition of Golden Nugget Online Gaming.
"Assuming Ontario Launches in May\"
'For the upcoming year, we anticipate that our acquisition of GNOG, together with our Ontario launch in the second quarter, will yield between $130-150 million in revenue but also reflect a negative adjusted EBITDA of $50-70 million,' Park detailed during the call. 'In the second quarter, we project that the GNOG operations alongside our Ontario launch will generate approximately $20-25 million in revenue, but a negative $35-45 million in adjusted EBITDA, assuming we go live in May.'
There has been considerable buzz surrounding DraftKings' entry into Ontario and its potential influence on the existing operators such as BetMGM, bet365, PointsBet, and Caesars. The province currently hosts 21 licensed sites operated by 13 different companies.FanDuel Sportsbook Ontario DraftKings, which offers online sports betting across 17 states in the U.S., has recently celebrated two years since becoming a publicly traded company. Their 'coming soon' advertisements have been visible across the Ontario market.
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