DraftKings (DKNG) Competitors: 2 Rivals In The Sports Betting Sector

What Is DraftKings?

DraftKings was founded in 2012. However, it has nonetheless become one of the biggest names in its chosen field, which has been facilitated by changes in the law as well as changes in social attitudes. For those who are unfamiliar, DraftKings focuses on two things, with one being sports betting and the other being daily fantasy sports. The former is exactly what it sounds like. Meanwhile, the second are similar to traditional fantasy sports but happen to have much shorter durations. Moreover, daily fantasy sports are often held in the format of paid competitions, meaning that they have some serious similarities with sports betting even if they are considered a game of skill rather than a game of chance in most U.S. states.

How Is Caesars Entertainment a Rival to DraftKings?

Naturally, DraftKings faces a wide range of rivals, which includes some that aren't direct competitors but still offer something similar enough to serve as substitutes for at least some of the consumers out there. To name an example, there is Caesars Entertainment. Interested individuals should know that this isn't the same company that used to bear the name. Instead, the current Caesars Entertainment was once called Eldorado Resorts but underwent a name change when it bought out the old Caesars Entertainment. Regardless, this company is very much the image that comes to mind for a lot of people when they think about gambling, as shown by its focuses on gaming and hospitality. Having said that, interested individuals should also know that Caesars Entertainment and its competitors are well-aware of the need to diversify their offerings to reflect the changing times, which is why it bought out the sports betting company William Hill for $3.7 billion in April of 2021. As such, Caesars Entertainment might not be as focused as DraftKings but it is clear that it possesses deep roots.

How Is FanDuel a Rival to DraftKings?

In contrast, FanDuel is more of a direct competitor to DraftKings. This can be seen in how it is involved in sports betting, daily fantasy sports, and online casinos. In fact, it is worth mentioning that the two companies formed an agreement to merge in November of 2016, which failed because the Federal Trade Commission blocked it on the basis that it would have controlled 90 percent of the market for daily fantasy sports. Something that should make it clear that FanDuel and DraftKings are the dominant players in this particular field. In any case, while that fell through, both companies have been very active about repositioning themselves. FanDuel merged with Flutter Entertainment, an Irish holding company was itself created through the merger of Paddy Power and Betfair. Thanks to this, the company now has powerful backing. Meanwhile, DraftKings became a publicly-traded company by performing a reverse merger with a blank check company.