Specialist
Former executive at DraftKings
Agenda
- US OSB (online sports betting) and iGaming industry trends, focusing on DraftKings (NASDAQ: DKNG)
- Competitive positioning, including tech stack strength vs peers’
- Customer acquisition dynamics and 2022 outlook, including New York launch implications
Questions
1.
What’s your 2022 outlook for the OSB [online sports betting] and iGaming industry?
2.
What are your TAM estimates for OSB vs iGaming? You mentioned expecting an enlarging TAM with some new states coming on board.
3.
How do you expect the New Jersey market to be impacted by New York going live tomorrow with four major sports books? How meaningful has border-crossing play been for that market?
4.
How would you frame the roadmap to profitability for the largest industry participants? Who might be first and last to get there?
5.
What are your thoughts around DraftKings’ competitive moat? Can you discuss the company’s competitive positioning vs peers?
6.
Do you think DraftKings is ahead or behind of where it would want to be, based on your observations of its strategy execution?
7.
How compelling is DraftKings’ pricing vs peers’? Does compelling pricing also mean any given player is offering the lowest pricing in the industry?
8.
How would you grade the breadth and depth of DraftKings’ offering vs that of its peers?
9.
Who do you think has the broadest offering?
10.
What are your thoughts on DraftKings’ tech stack? How does it compare to that of competitors such as BetMGM?
11.
What are the merits and drawbacks of tech stack insourcing vs outsourcing? There seems to be a lot up for debate here.
12.
Everyone stresses the difficulty of developing and deploying more standard product offerings, such as single-game plays and player/game props. How true or untrue is this and what particular pain points might make it true, or is it more about the risk plus trading or other aspects?
13.
Is there reason to believe DraftKings has been losing share to players such as BetMGM or Flutter? In what ways might it be losing or gaining share to its competitors?
14.
What are your thoughts on hold rates? Why are DraftKings’ hold rates so much lower than FanDuel’s and how could that gap play out?
15.
How do you think industry players consider FanDuel operationally vs DraftKings, given the difference in their market share and hold rate?
16.
What are your thoughts on brand loyalty? How would you grade brand loyalty to DraftKings vs its competitors?
17.
To what degree are bettors promiscuous and will flock to the best promotions? Do you think brand loyalty is starting to truly shine and show up?
18.
To what extent does product functionality drive brand loyalty or vice versa? Where might product functionality get in the way of developing brand loyalty?
19.
What did you consider the most important motivating factors in DraftKings’ bid for Entain? What are your thoughts on the company’s recent decision to end this bid?
20.
What are the greatest hurdles to US-based market leaders? If Caesars or Bet365 were to commit significant marketing investments, what would be the upside or downside on their ability to make a return?
21.
Do you think live betting in the US can be as prevalent as in the UK? What would you make of the pace of adoption?
22.
Could we make any assumptions around tax rates? Will tax rates likely be significantly raised?
23.
How do you expect operators to adapt their strategies, potentially around marketing or pricing, particularly in response to a hypothetically growing tax rate in New York, for instance?
Gain access to Premium Content
Submit your details to access up to 5 Forum Transcripts or to request a complimentary one week trial.
The information, material and content contained in this transcript (“Content”) is for information purposes only and does not constitute advice of any type or a trade recommendation and should not form the basis of any investment decision.This transcript has been edited by Third Bridge for ease of reading. Third Bridge Group Limited and its affiliates (together “Third Bridge”) make no representation and accept no liability for the Contentor for any errors, omissions or inaccuracies in respect of it. The views of the specialist expressed in the Content are those of the specialist and they are not endorsed by, nor do they represent the opinion of, Third Bridge. Third Bridge reserves all copyright, intellectual and other property rights in the Content. Any modification, reformatting, copying, displaying, distributing, transmitting, publishing, licensing, creating derivative works from, transferring or selling any Content is strictly prohibited
