No question about, we’re in the midst of an online gambling gold rush. There’s a number of entrants — the likes of Ceasars, DraftKings, FanDuel, MGM, Penn Gaming, PoinsBet, William Hill, and plenty more — all trying to “strike gold” in this emerging industry.
Undoubtedly, five years from now, there will be industry winners and there will be losers. My money is on DraftKings to come out on top — literally and figuratively.
And no, I’m not just saying that to earn brownie points, I really believe it down to my core. So much that I’ve slowly accumulated DraftKings stock since its reverse merger was completed back in April. Evidence below from my Robinhood account:
DraftKings has already rewarded my investment handsomely with a 2X return (and counting). While it’s certainly tempting to cash out my position in this highly volatile marketplace, I’m long on DKNG. And I mean LONG. Seriously, the company’s runway is only just getting started.
You see, I hold a few convictions about doing business — no matter the industry — in 2020 and onward, but this one might be atop the list: if you’re not all-in on digital, you’ll be crushed by those that are. Period.
That’s why I’m bullish on DraftKing’s future and desperately want to be apart of it. Its online-first mindset will upend an industry that’s mostly stuck on doing business the old way — through land-based casinos. Bettors will trend more and more toward placing wagers whenever and wherever from their desktop or phone, rather than drive to a physical casino and player there, which is already evident in New Jersey, the state with the loosest betting laws in the entire country.
It’s also this aforementioned belief that’s pushed me away from my current employer, Eastbay.com, which is owned by Foot Locker. Despite mounds of evidence showing brick-and-mortar retail is on a rapid descent, the parent company is still clinging to its physical stores, with little investment toward digital. Likewise, Eastbay’s most-distinguishable piece of marketing today remains a printed catalog delivered in the mail. A CATALOG! Personally, I don’t think either strategy is how you win in a post-COVID era that’s only accelerated the shift toward a digital world.
But circling back to DraftKings, beyond its total commitment to digital, it’s brand name and recognition also puts it in peak position to eat up market share as state regulations start being lifted. C’mon, who can forget the 2015 NFL season when every other commercial on sports networks was either DraftKings or FanDuel’s daily fantasy games? That’s certainly when DraftKings first became cemented in my brain.
Five years later, that brand presence has only ballooned. Seriously, is there a partnership deal DraftKings doesn’t have these days? ESPN, Turner Sports, the NFL, this and that pro team — it seems I’m reading about new ink being signed daily. Heck, I’ve seen the balance sheet, there’s more than a billion dollars at DraftKings disposal for more splashy deals and marketing.
As a proud investor and follower of business, I completely get what DraftKings is doing here. It wants its brand to become synonymous with online betting. That’s smart given in the coming years, many will be betting for the first time ever — well, legally I should say and not with a neighborhood bookie. Acquiring customers off the bat, then earning lifetime value from them, will pay for itself in the long run.
So that’s my bull case on DraftKings. With a deep commitment to digital and second-to-none marketing, it’s their race to lose in this gambling gold rush.
But here’s the thing, I don’t want to just watch this online betting competition from afar. No, I want to be in the thick of it alongside the DraftKings team and help them win at all costs. With my insights about the industry, plus my background, there’s no doubt I can help lead DraftKings to victory. No doubt.