What Happened?
Shares of fantasy sports and betting company DraftKings (NASDAQ: DKNG) jumped 3.1% in the morning session after the company secured a direct mobile sports betting license to operate in Missouri.
The Missouri Gaming Commission granted the company one of only two "untethered" sports betting licenses in the state. This allows DraftKings to operate its online sportsbook independently, without needing to partner with a land-based casino or professional sports team. The direct license provides broader market access and potential cost savings. This approval, announced on Friday, August 15, paves the way for the company to launch its platform on December 1, 2025, marking the 29th U.S. state where DraftKings will offer regulated sports betting and highlighting the expansion of its North American footprint.
After the initial pop the shares cooled down to $45.68, up 1.6% from previous close.
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What Is The Market Telling Us
DraftKings’s shares are quite volatile and have had 16 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 6 months ago when the stock gained 14.3% on the news that the company reported strong fourth-quarter results, which blew past analysts' EPS and EBITDA expectations. Looking ahead, it slightly lifted its full-year revenue guidance, beating analysts estimates', while EBITDA outlook for the same period was roughly in line. On the other hand, revenue missed expectations by a whisker as average revenue per user dropped 16%, primarily due to lower spending from Jackpocket users and a lower sportsbook hold rate. This dynamic played into earnings, as GAAP operating margin fell. Overall, this was a decent quarter with key positives.
DraftKings is up 25.9% since the beginning of the year, but at $45.68 per share, it is still trading 14.6% below its 52-week high of $53.49 from February 2025. Investors who bought $1,000 worth of DraftKings’s shares 5 years ago would now be looking at an investment worth $1,228.
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