DraftKings' Brand Advantage Intact, Despite Predictive Sports Betting Competition

Despite ongoing competition from peers, the emergence of predictive sports betting, and the threat of heightened regulation, we think DraftKings' 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 in leveraging customer data and launching new products. The company’s strong financial profile should afford it latitude to invest more resources in its brand. One instance of DraftKings' product prowess is extending its leading daily fantasy sports position, first established in 2012, into one of the top positions in the North American sports betting and i-gaming market. This top share position has also been buoyed by launching parlay and in-game play ahead of its competitors.