DraftKings Has Formed a Brand Advantage Driven by Its Leading Technology and Product Offering

Despite ongoing competition and the threat of heightened regulation, we think DraftKings' stout technology and product offering produce a brand advantage, the source of its narrow moat. DraftKings' in-house technology platform (acquired in 2020) allows more control into leveraging customer data and launching new products. The company’s strong financial profile should afford it latitude to invest more resources behind its brand. One instance of DraftKings' product prowess is it extending its leading daily fantasy sports position, first established in 2012, into one of the top positions in the North American sports betting and iGaming market, with the company, along with FanDuel, holding a combined 70% revenue share. This top revenue share position has also been buoyed by launching parlay and in-game play ahead of its peers.