GNOG - DraftKings: Take A Winning Bet On This Company

• DraftKings is a speculative play on the growth of Online Sports Betting and iGaming both in North America and Europe.
• Growth in the business is very dependent on gaining OSB and iGaming licensing approvals in every area in which DraftKings intends to operate.
• Each new state that the company enters is expected to become profitable in a two-to-three-year time range. Improving margins and profitability should result in multiple expansion.
• The two biggest risks to the story are very high customer acquisition costs and the difficulty DraftKings has in getting approved in the largest betting states of New York, Florida, Texas and California.
• DraftKings is a buy for aggressive long-term investors. However, investors with short time horizons should probably avoid the stock in 2022, because of high downside risks.

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