Next week, a new competitor is set to enter the sports-betting arena, with ESPN and Penn Entertainment launching their new gambling app, ESPN BET, in 17 states, including Massachusetts. This move has forced DraftKings to reassess its strategy and rely on the strength of its app to maintain its position in the market. Despite the promotional blitz expected from ESPN BET, DraftKings CEO Jason Robins stated that the company plans to stay disciplined and not increase its promotional rate, a tactic that has been successful in the face of previous waves of competition.
DraftKings has made significant improvements to its app, allowing for more live event betting and the ability to combine multiple bets into a parlay, which has resulted in a surge in its user base. The company’s stock has been on an upward trajectory, with revenue jumping 57 percent in the third quarter and reaching almost $5 billion for the next year.
Robins also credited a pop culture phenomenon for contributing to the company’s success, noting that bets on Kansas City Chiefs player Travis Kelce doubled since he started dating Taylor Swift. This positive momentum has solidified DraftKings’ leading position in the market, according to analysts.
On the other hand, Wayfair, another Boston consumer-tech company, anticipates aggressive discounting for the holiday season due to the slowing economy and higher interest rates. Despite a slight revenue increase in the third quarter, Wayfair’s stock has seen gains following two consecutive profitable quarters after significant job cuts earlier in the year.
Both companies have demonstrated resilience in the face of competition and economic challenges, with DraftKings’ disciplined approach and Wayfair’s strategic focus on promotional activities helping them navigate the shifting landscapes of their respective industries.