Connect with us

Canada

DraftKings Reports First Quarter 2021 Results and Raises 2021 Revenue Guidance

Published

on

 

DraftKings Inc. reported first quarter 2021 financial results.

First Quarter 2021 Highlights

For the three months ended March 31, 2021, DraftKings reported revenue of $312 million, an increase of 253% compared to $89 million during the same period in 2020. After giving pro forma effect to the business combination with SBTech (Global) Limited (“SBTech”) and Diamond Eagle Acquisition Corp. which was completed on April 23, 2020, as if it had occurred on January 1, 2019, revenue grew 175% compared to the three months ended March 31, 2020.

“DraftKings is off to an outstanding start in 2021,” said Jason Robins, DraftKings’ co-founder, CEO and Chairman of the Board. “We continued to make progress and remain on track with the migration to our own in-house proprietary sports betting engine, strengthened our content and technology capabilities with the acquisitions of VSiN and BlueRibbon Software, and invested in further differentiating our product offering with the upcoming rollout of social functionality in our DFS and mobile Sportsbook apps.”

Jason Park, DraftKings’ Chief Financial Officer, added, “Our $312 million in first quarter revenue, 114% increase in MUPs and 48% growth in ARPMUP reflect solid customer acquisition and retention as well as successful launches of mobile sports betting and iGaming in new states. We are raising our revenue outlook for 2021 due to the outperformance of our core business in the first quarter and our expectation for continued healthy growth.”

Strong Customer Retention and Acquisition Drove Q1 Results

Monthly Unique Payers (“MUPs”) for our B2C segment increased 114% compared to the first quarter of 2020. On average, 1.5 million monthly unique paying customers engaged with DraftKings each month during the first quarter. The increase reflects strong unique payer retention and acquisition across Daily Fantasy Sports, Online Sports Betting and iGaming.
Average Revenue per MUP (“ARPMUP”) was $61 in the first quarter representing a 48% increase versus the same period in 2020. Our ARPMUP was positively impacted by increased engagement with our iGaming and mobile sports betting product offerings as well as successful cross-selling.
Increasing 2021 Revenue Guidance

DraftKings is raising its fiscal year 2021 revenue guidance from a range of $900 million to $1 billion to a range of $1.05 billion to $1.15 billion, which equates to year-over-year growth of 63% to 79% and a 16% increase compared to the midpoint of our previous guidance.

The increase reflects solid performance in the first quarter of 2021, continued strong user activation due to the effectiveness of our marketing spend, well-executed launches of mobile sports betting and iGaming in Michigan and mobile sports betting in Virginia, and a modest contribution from our recently completed acquisitions. This guidance also assumes that all professional and college sports calendars that have been announced come to fruition and that we continue to operate in states in which we are live today.
Detailed financial data and other information is available in DraftKings’ Quarterly Report on Form 10-Q, being filed today with the Securities and Exchange Commission (the “SEC”), as well as in a slide presentation that can be accessed through the “Investors” section of the Company’s website at investors.draftkings.com.

DraftKings Grows Its Mobile Sports Betting and iGaming Footprint

In the first quarter of 2021, DraftKings launched mobile sports betting and iGaming in Michigan and mobile sports betting in Virginia.
DraftKings is live with online sports betting in 12 states that collectively represent 25% of the U.S. population. DraftKings is live with iGaming in 4 states, representing approximately 10% of the U.S. population.
In 2021, 25 state legislatures have introduced legislation to legalize mobile sports betting, 5 state legislatures have introduced legislation to expand their existing sports wagering frameworks and 1 state legislature has introduced legislation to legalize sports betting limited to retail locations. In addition, 4 states have introduced iGaming legislation and 3 states have introduced online poker legislation.

Three of the states that introduced legislation to legalize mobile sports betting this year – Wyoming, Arizona and New York – have already enacted mobile sports wagering laws. Maryland has made significant progress with a mobile and retail sports wagering bill passing the legislature and now pending action from the Governor. The three states that have enacted mobile sports wagering laws this year represent 8% of the U.S. population and bring the percentage of the population with legalized mobile sports betting to 35%.
Leadership and Board Updates

DraftKings announced the appointment of Gisele Bündchen, environmental activist and philanthropist, as a special advisor to the Company’s Chief Executive Officer and board of directors for environmental, social, and governance (“ESG”) initiatives.
We expanded our executive team with the addition of Brian Angiolet to oversee and optimize content creation and media strategy as the Company’s first Chief Media Officer.
Environmental, Social and Governance Initiatives Continue to Grow

We undertook a variety of internal and external efforts in honor of International Women’s Day to support women entrepreneurs and small business owners throughout March, while also recognizing the day as an official company holiday for our global employees. Customer participation in the Women’s History Month Sports Popularity Pool, which highlighted the greatest athletes and moments in women’s sports, helped generate $300,000 in total donations to several U.S. and global organizations focused on empowering and aiding women entrepreneurs and women-founded small businesses.
We raised $184,000 through charity DFS contests in support of Feeding Texas’ efforts to provide help to those impacted by the winter storms in Texas.

Product Developments, Content Initiatives and Commercial Agreements

The migration to our proprietary in-house back end and trading technology continues to be on-track for completion by the end of the third quarter of 2021.
We are announcing the upcoming rollout of social functionality to our DFS and mobile Sportsbook apps, marking an industry-first innovation to create an integrated social community across sports betting and daily fantasy sports, as fans can interact with each other within a shared, peer-to-peer environment. The product is particularly unique because it amplifies our ability to create an interconnected ecosystem across our consumer products. Features like universal profiles, friends lists, commenting and loyalty/rewards will allow DraftKings to connect users across products.
We acquired Vegas Sports Information Network, Inc. (VSiN), a multi-platform broadcast and content company delivering trusted sports betting news, analysis and data to U.S. sports bettors since 2017.
We acquired BlueRibbon Software Ltd., a leading global jackpot and gamification company that provides platform-agnostic, real-time gamification tools that allow for fully customizable jackpot promotions.
We announced an agreement with DISH Network to bring DraftKings’ sportsbook and daily fantasy experiences directly to DISH customers nationwide, beginning with a first-of-its-kind and patent-pending DraftKings app integration on the DISH TV Hopper platform. The agreement also provided for the subsequent launch of SLING TV’s new exclusive sports betting information channels in collaboration with DraftKings. SLING TV subscribers and SLING Free users can now view real-time game scores and betting odds on the DraftKings Basketball, Baseball and Hockey channels. SLING TV will continue to bring the DraftKings sports betting experience to customers with more sports and expanded offerings in the future.
DraftKings became UFC’s first-ever “Official Sportsbook and Daily Fantasy Partner” in the United States and Canada and will now be able to offer in-game promotions, activations, in-broadcast odds integrations and UFC branding across its daily fantasy and betting products and will possess rights to use official UFC marks and logos.

Continue Reading
Advertisement

AGCO

AGCO: Casino Days Penalized $54,000 for Deceptive and High-Risk Bonus Offer

Published

on

agco:-casino-days-penalized-$54,000-for-deceptive-and-high-risk-bonus-offer

 

The Alcohol and Gaming Commission of Ontario (AGCO) has issued a $54,000 monetary penalty alleging Well Played Media, Unipessoal LDA promoted a deceptive bonus on its Casino Days website. The bonus offer is alleged to have encouraged high-risk behavior and failed to properly disclose key terms.

The AGCO launched an investigation triggered by a player who complained that more than $8500 in winnings had been confiscated by Casino Days. The investigation reviewed a so-called “welcome bonus” that promised new players up to $2000.

However, to qualify for the full bonus amount, players had to:

Deposit $2000 of their own money;

Wager $70,000 (35 times the deposit);

Keep each wager at or under $5; and

Complete all wagering requirements within 7 days.

Investigators also found that certain terms of the bonus offer were difficult to find, buried behind multiple links on the site.

AGCO’s analysis showed that the average player would first lose $3640 trying to earn the $2000 bonus.

According to Ontario’s igaming rules, registered operators must not offer bonus promotions that encourage harmful gambling behavior and fail to disclose key conditions appropriately. Further, operators are not permitted to entice players with bonuses that cannot reasonably be attained without significant gambling losses.

These rules are in place to protect players and support a safe, regulated market—one that stands in contrast to the risks of unregulated gambling sites.

An igaming operator served with an Order of Monetary Penalty by the AGCO Registrar has the right to appeal the Registrar’s decision to the Licence Appeal Tribunal (LAT), an adjudicative tribunal that is part of Tribunals Ontario and independent of the AGCO.

“Player protection is a non-negotiable priority for the AGCO. We expect operators to be truthful and transparent about their promotions, and we also require them to ensure that those promotions do not encourage reckless or harmful patterns of play. An offer that requires a player to sustain substantial losses for a perceived benefit is not a fair offer. This penalty sends a clear signal that we will not hesitate to take action against operators who fail to meet their obligations to protect Ontario players,” Dr. Karin Schnarr, Chief Executive Officer and Registrar of AGCO.

The post AGCO: Casino Days Penalized $54,000 for Deceptive and High-Risk Bonus Offer appeared first on Gaming and Gambling Industry in the Americas.

Continue Reading

AGCO

What’s next for online gambling in Canada?

Published

on

what’s-next-for-online-gambling-in-canada?

 

Having provided the perfect case study for the benefits of legalised online gambling in Canada, we caught up with Bede’s Chief Executive Officer, Colin Cole-Johnson, to discuss why other provinces may look to follow Ontario’s example in the future and what challenges operators will need to be ready for when they do.

With the regulated online gambling market in Ontario recently being recognised as one of the largest in the world, operators will feel there’s plenty of untapped potential to be realised not just in the province itself, but in Canada as a whole, over the coming months. And for good reason too.

Since legalising online gambling in 2022, the Alcohol and Gaming Commission of Ontario (AGCO) has established a go-to framework for how regulators introduce rules and standards that protect players and enable operators to flourish – and no better is this illustrated than in the performance of the Ontario Lottery and Gaming Corporation (OLG), which has continued to make a hugely positive contribution in the province over the past few years.

Having already paved the way for successful open market regulation through a number of progressive initiatives, with even more yet to come – such as the proposed centralised self-exclusion model –  it certainly wouldn’t be a surprise to see other organisations turn to AGCO as an example of how regulations can be introduced both sustainably and profitably; and this will likely present several opportunities for operators as well.

From Bede’s experience in the country, Canadian regulators are thorough and well organised. Any province looking to follow the success of Ontario will no doubt look to AGCO for inspiration, and this may lead to similar regulatory frameworks in other new territory launches. As the gaming community in Canada is so connected, we’ve already seen cross-operator interest in sharing regulatory knowledge, meaning there’s a wealth of information waiting to be leveraged.

As the most likely province to regulate next, Alberta has already shown a preference for following an open-market model similar to Ontario’s, with the input of various industry stakeholders set to guide the way. The onboarding process for operators seeking to enter this potentially vibrant new market is likely to follow promptly after the new framework is enacted, so existing experience and relationships within the Ontario market should prove advantageous for those looking to hit the ground running.

For Bede, our years working closely with AGCO leave us well positioned to enter additional provinces in the future, and we greatly value the guidance and support we gain from having a direct relationship with the regulator. We aspire to grow even further in Canada by forming more provincial partnerships, and our learnings from Ontario will undoubtedly form a key part of this.

Internally, we have a strong framework for new market entry and regulatory compliance that includes cross-functional representation across the business. We understand the heavy lifting that goes into a launch and the complexity of licensing and delivering a new technical solution. Our approach always involves an analysis of the requirements from a compliance, risk, audit and financial perspective, as well as identifying any gaps where our products can make an impact with the right strategic solutions.

Taking the Ontario market as an example, we’ve seen some noticeable changes in player behaviour in recent years, meaning operators must be prepared to adapt in order to keep up with emerging trends. Although we’ve seen growth for our partners in the digital space, retail remains a predominant revenue stream for Canadian operators. As digital continues to grow, it’s important to provide a seamless end-to-end experience for players across channels, to be effective omni-channel solutions.

As more choice becomes available in the market, offering competitive payment and withdrawal options will be important. A critical part of the player journey that is often overlooked is the preference among players for easy access to preferred payment methods. A great example of innovation in this area is our Lottery Direct Pay method, where players can purchase tickets directly from their card without first having to load their wallet – creating a faster user journey that appeals to a wider audience.

Aside from these payment considerations, it’s worth noting that community engagement features and personalisation are both playing a more prominent role in the Canadian gaming landscape. Particularly among younger audiences, having the ability to offer a shared experience is becoming increasingly important to generating sustained engagement. For example, we’ve already seen OLG enjoy a significant uplift in overall ticket sales since launching the innovative Lottery Group Play tool.

Similarly, the power of personalisation cannot be understated when it comes to building player activity and retention. Through partnerships with companies such as XtremePush and Future Anthem, Bede has endeavoured to utilise more machine learning and AI systems that can broaden the customisation options available for customers, while our dynamic segmentation tool enables them to target user groups more effectively and automate the player journey in real time.

Of course, from the moment Ontario launched a legalised online gambling framework, regulators were required to focus their efforts on keeping up with increased accessibility and, therefore, increased risk of harm to the public. Should another province like Alberta also legalise online gambling in future, the same challenges will exist – and this presents an important opportunity for operators to both educate players on responsible gaming protocol and enforce it.

Given Bede has been operating in highly regulated markets for over 13 years, we have both an established suite of RG tools and in-depth knowledge of how to use them effectively. Evidenced in the UK market and beyond – Bede has developed its platform to meet the tightening controls that have been issued over every aspect of online gambling – enabling operators to create their own tailored mix of tools that best support their players.

Notably, the upper limit functionality in our RG toolset gives our customers the option to monitor and respond to potential problem behaviour by setting maximum limits for specific players. The players may opt to further decrease their own limits, but they’ll be unable to exceed the maximum setting until/unless the operator removes them, reducing the harm they could potentially experience. As well as outright prevention, being able to educate a player in such a moment is equally important – and using our platform, operators can send appropriate, personalised messages to users that encourage them to alter their play and even think about setting time out periods where necessary. For example, our partners can use our Player Interaction feature to set alerts from the front end based on pre-defined player behaviours, and then use that information for RG activities; if a player returns to a page a certain number of times, it can automatically trigger personalised messages to encourage the player to set a limit.

As responsible gaming is a constantly evolving topic in Ontario and other new markets in Canada are likely to experience similar growing pains, supporting regulatory efforts through the smart adoption of harm prevention tools will be a key part of gaining a foothold. This, coupled with the other regional considerations we’ve outlined in this article will be crucial to any operator’s future success in the country; and there are definitely big opportunities on offer for those who get it right.

The post What’s next for online gambling in Canada? appeared first on Gaming and Gambling Industry in the Americas.

Continue Reading

Canada

Thunderkick’s portfolio makes Ontario debut through SkillOnNet brands

Published

on

thunderkick’s-portfolio-makes-ontario-debut-through-skillonnet-brands

Global entertainment brand SkillOnNet is deepening its existing partnership with Stockholm-based game studio Thunderkick to launch the developer’s unique, engaging slot titles in Ontario.

The Canadian province is one of the most exciting regulated markets in North America, and the Ontario players will now gain access to Thunderkick’s full portfolio of highly acclaimed games via SkillOnNet-powered online casino brands such as PlayOJO, SlotsMagic, and SpinGenie.

Thunderkick is known for its independent, boundary-pushing slot games like Pink Elephants, Esqueleto Explosivo, and Beat the Beast and has established a strong reputation for creativity and originality in the iGaming space. The deal allows the studio to further expand its global footprint while giving Ontario players the chance to enjoy a fresh wave of premium content.

Ontario’s regulated online gaming market, which officially opened in 2022, has quickly become a key market for the iGaming industry, and SkillOnNet was among the first brands to secure licensing in the province. The expansion reinforces SkillOnNet’s commitment to delivering top-tier entertainment in regulated markets globally.

Jani Kontturi at SkillOnNet said: “Thunderkick has been a key partner of ours in other markets, and we’re delighted to bring their outstanding content to Ontario. This region is fast becoming a vital part of our operations, and we’re confident players here will respond just as positively to Thunderkick’s games as they have elsewhere.”

Mariam Dodosh, Account Manager at Thunderkick said: “We’re thrilled to expand our relationship with SkillOnNet and enter the Ontario market together. Our games have a track record of strong performance, and we’re excited to see them go live in one of the most dynamic new regions in iGaming.”

The post Thunderkick’s portfolio makes Ontario debut through SkillOnNet brands appeared first on Gaming and Gambling Industry in the Americas.

Continue Reading

Trending