DraftKings has announced that it will be launching a stand-alone casino app in New Jersey. The app will feature games only DraftKings provides, plus classics such as blackjack and roulette.
The DraftKings Casino app will also offer games from third-party providers such as International Gaming Technology, Slingo, Scientific Games, among others. New Jersey customers will have access to the DraftKings “Live Studio,” which will operate 24/7.
“We are thrilled to break new ground for DraftKings in the gaming space today with the launch of our DraftKings Casino app, the Company’s first perennial product that operates year-round irrespective of the annual sports schedules,” said Jason March, DraftKings’ Vice President of Gaming.
“Following our debut in the Garden State, we look forward to continued innovation, nationwide expansion where regulations allow, and to further positioning DraftKings as an all-inclusive gaming and entertainment experience.”
Currently, only New Jersey and Pennsylvania permit online casinos, but the list may soon grow. With the shortage of revenue caused by COVID-19, many other states may look to this business that many predict is growing rapidly.
Online slots in New Jersey generated $1.06 billion last month, a $300 million jump from April. Internet table games raked in $778.5 million, up more than $150 million from the previous month.
International Journal of Mental Health and Addiction conducted a study on the growth of internet gaming. They concluded that revenue grew because of people that were usually going to land-based casinos, rather than sports bettors coming over to iGaming.
“A recent DraftKings-led study found that 70 percent of new DraftKings Casino customers place their first bet on DraftKings-branded games, further exemplifying the existing appetite and demand for a modernized customer experience,” according to the company.
DraftKings has been operational in the state since 2018, but they are attempting to broaden their customer base. After gaining so many different customers during the coronavirus shutdown, they definitely see the potential for the future.
It hasn’t been long since the company went public, and they are off to a fast start. DraftKings’ shares have nearly doubled since their debut in April. They are currently at an evaluation of around $13 billion.
“I am confident that the new DraftKings will progress our goal of offering the best, most innovative sports and gaming products to our customers,” Robins, the company’s CEO, said.
For the US market, DraftKings’ main competitor is FanDuel. In the last quarter of 2019, DraftKings controlled about 27% of the market, while FanDuel had 39%.
However, the concern lies in the company’s losses. DraftKings recorded net losses of $68.7 million in the first quarter this year compares to $29.6 million in losses during the same span in 2019.
The net revenue in 2019 was $323 million, but there are still concerns over the periods of losses. There is still optimism from many experts who believe their share and worth will continue to climb over the next few years.
Now, DraftKings is close to operating in several more states. Tennessee, Virginia, and Michigan are next up, followed by the many others debating sports betting legislation.