It’s been 14 months since DraftKings completed its $1.56 billion all stock acquisition of Tilman Fertitta’s Golden Nugget Online Gaming (GNOG). That deal is now paying dividends for the buyer.
The GNOG buy helped establish DraftKings as a leader in the internet casino space, while helping it add market share in the states in which GNOG was operational. Speaking of market share, Santarelli estimates DraftKings’ share is up to 31%, thanks to strong starts in states that recently added online sports betting, including Kansas, Maryland, Massachusetts, and Ohio.
“We view the consistency of DKNG’s OSB share favorably, and believe, in the absence of a radical change within the industry from new competition, something we view as unlikely, DKNG is likely to maintain, or even potentially grow, share from current levels,” observed the analyst.
As for new states contributing to the DraftKings thesis, Florida isn’t likely to be one because of the Seminole Tribe's stranglehold on gaming in that state, according to Santarelli.
The GNOG buy helped establish DraftKings as a leader in the internet casino space, while helping it add market share in the states in which GNOG was operational. Speaking of market share, Santarelli estimates DraftKings’ share is up to 31%, thanks to strong starts in states that recently added online sports betting, including Kansas, Maryland, Massachusetts, and Ohio.
“We view the consistency of DKNG’s OSB share favorably, and believe, in the absence of a radical change within the industry from new competition, something we view as unlikely, DKNG is likely to maintain, or even potentially grow, share from current levels,” observed the analyst.
As for new states contributing to the DraftKings thesis, Florida isn’t likely to be one because of the Seminole Tribe's stranglehold on gaming in that state, according to Santarelli.