One of America’s largest legal sports betting operators is entering the streaming business.
DraftKings is preparing to launch a free video streaming service in the coming weeks, according to Bloomberg. DK Network, which will air broadcasts of company-sponsored podcasts, will be backed by advertising sales. The service will feature DraftKings’ top talent and personalities.
The launch of DK Network allows DraftKings to compete with Flutter Entertainment’s FanDuel, which launched linear cable television network FanDuel TV and streaming service FanDuel+ in September 2022. FanDuel is the largest sportsbook in the U.S. in terms of market share at 50%.
The company also bolstered its podcast offerings on April 11 with a partnership with The Ringer.
Building portfolio
DraftKings — the second-largest sportsbook in America — has also been diversifying its business outside of DK Network. In 2021, it acquired sports betting broadcast and content company Vegas Sports Information Network, Inc. for an undisclosed amount. VSiN offers content across a multitude of platforms, including Marquee Sports Network and YouTube TV.
DraftKings has also landed partnerships with iHeartMedia Inc. and Meadowlark Media — launched by former ESPN personality Dan Le Batard and former ESPN president John Skipper
In March, DraftKings launched DK Horse — the company’s first foray into horse racing. The app launched in 12 states with plans to expand. DK Horse comes after DraftKings secured a multiyear deal in November 2022 with Churchill Downs to gain access to TwinSpires’ offerings.
DK Horse is separate from DraftKings’ casino, daily fantasy, and sportsbook apps. As a result, new customers must register for a DK Horse account and deposit funds before placing wagers.
Making progress
DraftKings’ willingness to expand its reach comes as the company heads toward profitability. In Q4 2022, the company generated $855 million in revenue — an 81% increase year-over-year. The growth allowed DraftKings to raise its full-year revenue guidance to range between $2.85 billion and $3.05 billion. It previously projected revenue to be between $2.8 billion and $3 billion. DraftKings also narrowed losses during the quarter. The gaming giant reported a net loss of $242.6 million in Q4 2022, compared to $326 million for the same period the year prior.
DraftKings attributed the strong end to FY2022 to customer retention and a decline in promotional intensity. The company also cited its product innovation for the favorable quarter.
