play_arrow
Super Bowl Picks – Kansas City Chiefs Vs Philadelphia Eagles admin
play_arrow
NFL Conference Championship Picks – San Francisco at Philadelphia, Cincinnati at Kansas City admin
play_arrow
NFL Divisional Matchups – JAC@KC, NYG@PHI, CIN@BUF, DAL@SF admin
play_arrow
NFL Wildcard Weekend – Sea at SF, LAC at Jac, Mia at Buf, NYG at Min, Bal at Cin, Dal at TB admin
DraftKings is pushing towards hitting EBITDA profitability in 2024. However, analysts at Roth MKM suggest that while the company has accelerated its cost-cutting measures, it may still struggle to reach EBITDA margins of even 20% due to high fixed costs and “sticky” gross costs such as taxes.
Even if DraftKings’ market share expands, Roth does not believe EBITDA margins can reach 20% unless industry gross gaming revenue (GGR) reaches $30bn or higher. Roth also notes that for DraftKings to reach its long-term gross margin target of 56%, it would need an uptick in newly regulated states to balance out the 51% in New York, which may be challenging given the recent legislative committee hearing. Finally, Roth suggests that DraftKings’ more optimistic gross margin expectation compared to FanDuel’s seems aggressive, given that FanDuel’s parent company Flutter has a longer operating history and greater scale as the largest iGaming operator globally.
The gaming REIT market is ThrivingThe gaming REIT market is thriving, according to VICI and GLP. VICI CEO Ed Pitoniak remarked that around 40% of the gaming industry has been […]
