Digital sports entertainment and gaming company DraftKings Inc. (NASDAQ:DKNG) recently announced that it has signed an exclusive agreement with Oregon Lottery to become the company’s official online sports betting partner. The transaction is set to commence on January 18.
Following the news, shares of the company declined by more than 3.1% to close at $26.06 in Wednesday’s extended trading session.
Under the terms of the agreement, DraftKings Sportsbook will replace the current Scoreboard app. Further, existing Scoreboard customers will be able to create a DraftKings account and shift their funds to the DraftKings Sportsbook app.
Post the migration, Scoreboard customers will be able to access their transaction history, account information and the withdrawal facility for six months.
DraftKings is slated to report its upcoming earnings on February 25, 2022.
Management Weighs in
The President of Global Technology and Product, Paul Liberman, said, “DraftKings is thrilled to embark on this journey with the Oregon Lottery as we build out a coast-to-coast presence with our top-rated online sportsbook for these fans to experience ahead of the NFL playoffs and Super Bowl. The Oregon Lottery shares our innovative spirit as one of the most progressive organizations in the real-money gaming sector, and together we look forward to delivering the exceptional online sportsbook products that Oregonians have been anticipating.”
Recently, Deutsche Bank analyst Carlo Santarelli reiterated a Hold rating on the stock with a price target of $27, which implies upside potential of 3.45% from current levels.
The Wall Street community is cautiously optimistic about the stock and has a Moderate Buy consensus rating based on 9 Buys, 9 Holds and 1 Sell. The average DraftKings stock prediction of $48.24 implies that the stock has upside potential of 84.8% from current levels. Shares have declined about 52.2% over the past year.
TipRanks’ Website Traffic Tool, which uses data from SEMrush Holdings (SEMR), the world’s biggest website usage monitoring service, offers insight into DraftKings’ performance this quarter.
According to the tool, the DraftKings website recorded an 11.47% monthly fall in global visits in December, compared to the same period last year. However, year-to-date, website traffic has grown 49.54%, compared to the previous year.
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