A day ahead of the company’s second-quarter earnings call, DraftKings confirmed it will launch an online sportsbook in Kentucky.
In a press release Thursday, the Boston-based sports betting giant revealed its Kentucky sports betting launch plans. As a result, the four major US online sports betting operators have all announced plans to be in the Bluegrass State.
DraftKings, FanDuel, Caesars Sportsbook and BetMGM are the first and only four operators with confirmed plans for a Kentucky sportsbook so far.
Kentucky launch will add to DraftKings’ fourth-quarter profits
The press release was focused on the company’s second-quarter earnings and projections for the rest of 2023.
Executives expect the company to generate between $150 million and $175 million of adjusted EBITDA in the fourth quarter. New revenue from its DraftKings Kentucky platform will help reach those numbers.
“We are well on our way to achieving positive Adjusted EBITDA again in the fourth quarter of 2023 and for the fiscal year 2024 and beyond,” said DraftKings CEO Jason Robins. “We are excited by the additional product features and functionality that we are introducing leading into football season and also look forward to another successful online sportsbook launch in Kentucky this fall pending licensure and regulatory approvals.”
No word on a sports betting partner
Robins announced the entry into the Kentucky market but didn’t say which racetrack the company will partner with.
Per the state’s sports betting legislation, every online operator in Kentucky must partner with one of the state’s 14 racetracks and simulcast facilities eligible for a retail sportsbook. However, Robins did not disclose which track will partner with DraftKings.
The company already has an existing partnership with Churchill Downs Inc. for its horse betting platform, DK Horse. Thus, it seems likely for DraftKings to partner with CDI for sports betting as well.
DraftKings’ Kentucky platform will be available on Sept. 28, the first day online sportsbooks are allowed to accept wagers.
Current online sports betting landscape
|Online Sportsbook||Land-Based Market Access Partner|
|Caesars Sportsbook||Keeneland and Red Mile|
|FanDuel||Churchill Downs Inc.|
|DraftKings||Yet to announce|
|BetMGM||Yet to announce|
Each horse racing association can partner with up to three companies for online sports betting access. There 27 licenses available for online operators and less than two months before launch.