DraftKings has secured an initial stamp from the Massachusetts Gaming Commission for Category 3 online sports betting after meeting the requirements. The venture employs more residents from the region as compared to other operators, and the development comes as a good success considering it lacked the star power in Betr hearing.
The MCG Chair, Cathy Judd-Stein, has praised DraftKings for submitting a comprehensive, content-rich proposal. Cathy added that it was nice to see them in Boston, since the legislature is often concerned with gaming’s economics.
However, DraftKings needs to continue to investigate a few issues. The employment rate of female members of society is one of them. The percentage is currently 26.6%, and the Commission has sought measures for improvement. The commissioner, Eileen O’Brien, cited the figures to emphasize that the number was quite low.
Graham Walters, Chief People Officer of DraftKings, said that the company has improved its demographics, but not as much as it should have. Graham added that the female employment rate is a major priority and that the company continues to spend heavily in this area.
Another concern that has surrounded DraftKings, one of the
best sports betting sites, is related to the usage of the term free bet in its promotions. Such terms, or taglines, often mislead people into signing up on the platform and performing an action to avail of such promotions. The same is not the case with DraftKings.Stephanie Sherman, the Marketing Director at DraftKings, has clarified that the usage of the term “free bet” means that it truly applies to the customers without them having to perform any other action. This was in response to the challenge put forth by Eileen O’Brien. Sherman has said that DraftKings would be happy to oblige if Massachusetts regulations want the operator to take away the term altogether from its promotions.
Despite receiving praise from commissioners, DraftKings currently has no marketing presence in educational institutions like colleges and schools.
One concern that could stick with the operator for a while is its gaming violations in other states, namely Ohio, Illinois, and New Jersey. DraftKings is reportedly facing a potential fine of $500,000 by the Ohio Casino Control Commission, $15,000 in violations by the Illinois Gaming Board, and many more violations reported in New Jersey. Most of them deal with the online operator’s promotions and advertisement campaigns.
DraftKings has been asked to justify these violations and update the Commission with the safeguards that it has implemented to ensure that such incidents do not happen again in the future.
The venture is looking at 2023 to register profitability after surviving the loss-making year in 2022. Jason Park, the Chief Financial Officer of DraftKings, believes that there will be a strong inflection in profitability in 2023 and continued profitability thereafter.