Yesterday the Charles Schwab Challenge got underway and the golf tournament proved to be a smashing success all the way around. Sports enthusiasts are not only pleased to see the practise resuming, but sports gaming fans are also delighted.
Although major sports leagues like the NBA and the NHL, among others, are still at least a month away from getting back into practise, the PGA’s pro golfers return to the greens saw sports bettors return to their sportsbooks. There was no shortage of action, as DraftKings took control. The big sportsbook revealed it had seen more wagers on every other four-round game on the first day of the tournament than it has ever seen.
Casino.org received an email from DraftKings’ marketing director, Stephen Miraglia, stating that the organisation was genuinely pleased by the behaviour it experienced yesterday, the first day of the Charles Schwab Challenge.
He said: “The Charles Schwab Challenge became our most bet golf tournament ever today before round one had been completed. Live money since first tee time this morning is already at 30% of pre-match wagering totals.
“To put that number in perspective, the last true golf tournament was the Arnold Palmer Invitation – this tournament has already done more in live wagering after one day than the Arnold Palmer did over four days.”
Only two years ago, Golf was added to the DraftKings sports roster and has steadily gathered more support as it develops. Last month’s Florida “The Match: Champions for Charity” event, which saw Tiger Woods and Peyton Manning triumph over Phil Mickelson and Tom Brady, was the most wagers-active golf event. The current event, though, that runs through Sunday, might set a new record for wagers.
Recently DraftKings went public and since then the sportsbook has seen nothing but substantial growth and reactions. A handful of financial analysts have already singled it out, and investment bank Oppenheimer will not miss out on the excitement. It started yesterday covering the company giving it a “outperform” rating with a price target of $48 – the current price is $36.28, down from the $40.64 it saw a week ago.
With action now taking place in nine states in the US, and more on the way, DraftKings is raising the bar for sportsbooks nationwide. Oppenheimer expects far more results on the way and explains: “As more states legalise sports gambling, we believe competencies in product development and customer acquisition that DKNG utilised to become the DFS market leader (over 60% share) will allow the company to be a critical player in accelerating the shift in US sports betting from ~$150B wagered illegally/offshore to licensed domestic operators.”
Since the company went public DraftKings has seen its price doubled. For a lot of companies, this is not abnormal once they introduce an initial public offering, but the confidence levels granted to the sports gambling market across the U.S. has most analysts expecting DraftKings to be able to sustain their growth well into the future.
Oppenheimer agrees, then adds: “While a premium valuation and high cash flow burn likely create above-average volatility near term, we emphasise the long-term nature of our rating.”