DraftKings will launch a new “super app” combining its predictions, gaming and lottery products, it announced today (2 March).
DraftKings will launch a new “super app” combining its predictions, gaming and lottery products, it announced today (2 March).
The leading US gaming operator is looking to reassure skittish shareholders in an investor day presentation today, where it will outline its long-term strategy and value proposition.
It comes amid a major slump in the business’ share price as major prediction market operators look to seize the sports trading opportunity, spooking investors with cannibalisation fears.
The company will launch a new “super app”, branded DraftKings Sports & Casino, which will bring its sportsbook, prediction markets, casino and lottery products together under a single platform.
The app – with access to be tailored for each jurisdiction – will work with a single account and wallet, with phase one integration expected by March Madness and additional upgrades planned throughout the year.
March Madness has been highlighted as a particular hinge point in the sportsbook/prediction markets battle, as the college sports nature of the competition is expected to be favourable for prediction market operators.
DraftKings said: “The planned rollout of DraftKings Sports & Casino is expected to enhance DraftKings’ powerful lifetime value flywheel, which is increasingly efficient and supported by its four sustainable advantages in Product, Technology, Trust, and Marketing, and accelerated by AI.
“As a leading brand in sports, gaming and entertainment, the company expects DraftKings Sports & Casino to strengthen cross-sell, deepen customer engagement, and optimise unit economics across verticals.”
DraftKings highlights $80bn opportunity
The announcement came as part of an expanded growth strategy and long-term financial framework, including participation in what management expects to be a $55bn to $80bn industry gross revenue opportunity by 2030.
The operator also said it is increasing deployment of AI across the platform to drive efficiency and operating leverage, following on from reports it has been laying off employees.
DraftKings added it expects to achieve at least a 30% adjusted EBITDA margin in the long term, with potential upside as the company increases its scale.