The company believes the adoption of eSports betting is increasing as a result of the pandemic, noting that engagement remains strong even as traditional sports are coming back online, according to Graham.
DraftKings is working with regulators in multiple states to transition from offering DFS games to eSports wagering. Michigan, Tennessee, and Virginia approved eSports wagering, but it s not yet live in those states, and those opportunities aren t included in DraftKings 2020 revenue guidance of $500 million to $540 million, according to the Canaccord analyst.
The aforementioned forecast assumes no revenue from college sports in the second half. The and several Group of Five conferences are delaying 2020 football, and the PAC-12 said no basketball games will be played until at least January.
That makes the NFL season pivotal for DraftKings. But it appears the most popular league in the US will move ahead with its 2020 season as planned.
“With still well-below highs, strong engagement on events that have taken place, and the NFL season looking likely to happen, we see a positive setup for the stock in 2H20,” said Graham.
