DraftKings, a sports betting platform, has officially opened its online casino and sports betting businesses in the province of Ontario. This comes around six weeks after online gambling was regulated in the province.
The United States-based online gambling company is the seventeenth company to be granted permission to conduct business in the recently opened sector. DraftKings is licensed to offer gamblers access to a variety of online gambling options, including casino games and betting on sports.
DraftKings’ current CEO, Chairman, and Co-founder, Jason Robins, claimed that the firm has hit a major milestone with its entry into the gambling market in Ontario: “We look forward to providing the passionate fanbase in Ontario with the most entertaining and responsible gaming experience possible.” [Transcription] “We look forward to providing the passionate fanbase in Ontario with the most entertaining and responsible gaming experience possible.”
DraftKings has a physical presence in 18 of the 50 states that make up the United States, in addition to its presence in Canada. Golden Nugget Online Gaming (GNOG) is now accessible to gamers in eight different states through our casino, which also welcomes players from other states.
There is no problem with arriving late.
DraftKings had a late start in Ontario, which, for the most part, has required the business to take a strategy that is distinct from the one it uses in the United States. In the majority of instances, the operator started taking bets on the very first day that it was legal to do so in states like Arizona, Louisiana, Michigan, and New York, which are all states in which a large number of operators simultaneously founded their operations. In addition to this, it was the first product of its kind to be made available online in the states of Indiana and New Jersey.
During the conference call for the firm’s second quarter that took place earlier this month with stock analysts, company management claimed that the delay of six weeks should not impair the company’s capacity to capture market share in Ontario. The conference call was held earlier this month.
According to remarks that were made by DraftKings CFO Jason Park on the call that took place on May 6, launching in the province, in addition to the recent completion of GNOG, should earn up to $150 million in revenue this year.
On the other side, it is estimated that starting operations in Ontario and completing the GNOG acquisition will both result in losses of up to seventy million dollars before interest, taxes, depreciation, and amortization are taken into account.
Despite the fact that DraftKings did not begin operations at the same time as its primary competitors in the United States, such as FanDuel,
Caesars Sportsbook, and BetMGM, the firm did have a presence in Ontario as a grey-market daily fantasy sports operator. This should make it easier for it to make up for lost time as it works toward increasing its market share in the province.
In the days leading up to the launch of its mobile sports betting and casino applications, the firm sent a notification to its fantasy sports users earlier this week that neither paid nor free fantasy contests will be accessible in the province for the time being. This news came in the days coming up to the debut of the company’s mobile sports betting and casino apps.
Gray market operators were strongly pushed to make the switch to Ontario’s newly established legal market by provincial officials as part of Ontario’s initiative to regulate online gaming businesses.