A major legal sports betting operator is continuing to deal with the consequences of a controversial promotion.
DraftKings is shrouded in controversy after the Boston-based sports betting and fantasy company invited users of its platform to wager on a "Never Forget," 9/11-themed parlay. The promo was the focus of New York’s pro sports teams, including the Jets, Mets, and Yankees.
The tone-deaf marketing ploy was immediately met with backlash from users, leading to the removal of the +651 parlay and an apology from DraftKings, which cited it as a commemoration.
We sincerely apologize for the featured parlay that was shared briefly in commemoration of 9/11. We respect the significance of this day for our country and especially for the families of those who were directly affected.
— DraftKings News (@DraftKingsNews) September 11, 2023
DraftKings’ rollout of the 9/11-themed parlay has also sparked concern among gaming regulators. On October 6, DraftKings met with members of the New York State Gaming Commission. The meeting included NYSGC executive director Rob Williams and chair Brian O’Dwyer.
Before the meeting, O’Dwyer requested assurances from DraftKings that “this type of behavior, which was reprehensible, would not be repeated.” The chairman voiced a concern that varying state regulations across the country cause a lack of filtering throughout DraftKings’ operations.
Increasing revenue
DraftKings is facing backlash following a strong fiscal Q2.
The online betting site was able to generate $875 million in revenue during the quarter, compared to $466 million for the same period last year. DraftKings attributed the results to the efficient acquisition of new customers, product innovation, engagement, and promotions. The company expects revenue to reach roughly $3.5 billion in FY2023, up from a previous projection of $3.1 billion.
DraftKings is live with online wagering in over 20 states, providing access to more than 40% of America. The company, which is also authorized in Ontario, went live in Kentucky on September 28.
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