DraftKings is an American daily fantasy sports contest and sports betting operator. The company allows users to enter daily and weekly fantasy sports–related contests and win money based on individual player performances in five major American sports (MLB, the NHL, the NFL, the NBA and the PGA), Premier League and UEFA Champions League soccer, NASCAR auto racing, Canadian Football League. Is DraftKings Sportsbook Safe to Use? Yes, DraftKings Sportsbook passes our 3-point check system at Lineups.com, as it is legal, licensed, and safe to use throughout the United States in every state that it operates in. Server and Information Security. DraftKings is secured by a Secure Socket Layer or SSL. Start betting with DraftKings Sportsbook. Icon representing an X shape. Arrow pointing right icon. New Users: UFC 259 Bet 1, Get 100. New Users: Bet $1 on any UFC 259 title fight, get $100 in Free Bets if either fighter lands a punch!

1. Is Draftkings Trustworthy
2. Is Draftkings Safe
3. How Safe Is Draftkings
4. Is Draftkings Sportsbook Safe
5. Is Draftkings Sportsbook Safe

Your information is safe. All of DraftKings confidential information is safeguarded by SSL (Secure Socket Layer), as represented by the padlock visible on your browser’s address tab. This ensures the security of private information provided by the website.

Categories Leisure & Entertainment

As the COVID-19 pandemic spread worldwide in recent months, major sporting events were either canceled or deferred indefinitely. Both players and audience of football, baseball, basketball, cricket, and many other games are missing their favorite events and are eagerly waiting to return to the grounds. In this scenario, let’s see what the future holds for the sports betting company DraftKings (NASDAQ: DKNG).

Overview

DraftKings, which started its operations in 2012, completed its business combination with Diamond Eagle Acquisition Company (DEAC) and SBTech through a reverse merger in April 2020 and started trading on NASDAQ with ticker symbol DKNG. The Boston, Massachusetts-based firm provides users with Daily Fantasy Sports (DFS), Sportsbook and iGaming product offerings. DraftKings is also involved in the design and development of sports betting and casino gaming platform software for online and retail sportsbook and casino gaming products.

Across all the product offerings, the digital sports entertainment company provides users with a single integrated platform that provides one account, one wallet, a centralized payment system and responsible gaming controls, compliant with regulations across all jurisdictions in which the company operates. These product offerings, which generate revenue for the company, are available through both web and mobile applications.

Growing user base

Monthly unique payers, (MUPs – the number of unique paid users on a monthly basis), has been growing year-over-year for DraftKings. For the first quarter ended March 31, 2020, MUPs grew to 720,000 from 600,000 in the prior year quarter. Average revenue per MUP increased to $41 from $37 in the first quarter of 2019.

In DFS platform, users pay an entry fee and select a team of players for a specific sporting event and they will compete against other users. The users are then ranked based on the number of fantasy points accrued by each user’s fantasy sports team. If a user finishes in a position that is within the prize payout table, the user wins the corresponding prize. DraftKings generates revenue from contest entry fees, net of amounts paid out as prizes and customer incentives.

Continuing loss

Since its inception, DraftKings has generated neither profit nor positive cash flow from operations. Net loss of $76 million in 2018 expanded to $143 million in 2019. However, revenue grew 43% annually to $323 million in 2019.

Opportunities

During the Q1 2020 call, CEO Jason Rabins stated that the rapidly growing digital sports entertainment and gaming industry opportunity represents an addressable market of over $30 billion in the US alone when considering a combination of online sports betting, fantasy sports, and iGames.

As of May 6, 2020, 21 states and the District of Columbia, have legalized sports betting in some form. As more states legalize the sports betting, more players will be attracted, which in turn will increase revenue for DraftKings. The company has been working with regulators to get its products live in states where it does not currently operate.

Is Draftkings Trustworthy

Despite missing several revenue opportunities from Q1 sporting events, DraftKings grew its revenue by 30% in the first quarter of 2020. However, there was an acceleration in iGaming activity after major sporting events stopped, and people began looking for alternative forms of entertainment.

Growing user base, unaddressed online gaming market in the US, and the increased momentum in the legalization of sports betting in more states are the bright spots for DraftKings.

Roadblocks

COVID-19 has created headwinds canceling several sporting events in the US and around the world. The company missed several weeks of the NBA and NHL seasons in Q1. Even yesterday, when a new coronavirus outbreak led to postponing the two games of Major League Baseball (MLB), DKNG stock tumbled more than 6%.

DraftKings also faces competition from existing black-market gambling outlets and its main rival FanDuel, which was acquired by Irish company Flutter Entertainment (formerly known as Paddy Power Betfair) in 2018.

It’s worth noting FanDuel and DraftKings called off their planned merger in 2017 as the Federal Trade Commission blocked it saying the merged company would become a monopoly and control more than 90% of the US market for paid daily fantasy sports contests.

Safe bet?

Till things get back to normal, it would be tough for DraftKings to bring in more users to their platforms. Let’s hope that later this year or in early 2021, the world will return to normalcy and all the sporting events will be played with great enthusiasm, like a few months ago. Till then DraftKings stock might experience a sideways movement as it has already had a bullish run. Investors can wait until the end of 2020 and then take a decision on DraftKings stock.

DISCLAIMER: The article does not necessarily imply the views of AlphaStreet, and contains opinions of the author alone.

Most Popular

Infographic: Stitch Fix (SFIX) slips to loss in Q2; revenues up 12%

Stitch Fix, Inc. (NASDAQ: SFIX) on Monday reported a net loss for the second quarter of 2021, compared to profit last year. Meanwhile, revenues grew 12%. The San Francisco, California-based

With growing client base, Lemonade is taking insurance sector into digital era

Lemonade Inc. (NYSE: LMND) has been steadily expanding its customer base, supported by a business model that set a new paradigm in the insurance industry. What needs to be seen

After strong 2020, can Big Lots continue leveraging ‘essential retailer’ tag?

For Big Lots Inc. (NYSE: BIG), 2020 was a very successful year as the discount store operator benefited from the virus-induced shift in customers' shopping behavior. The company managed to

Is Draftkings Safe

It’s an honest question that a lot of newer players may have –
Is DraftKings legit?
and then it’s usually followed closely by some others.

Do they pay you when you win? Do they offer fair games? Are you playing against real players? Do they follow the laws and regulations governing online gambling (avoiding it) while maintaining legal real money fantasy sports leagues?

I will answer these questions below.

DraftKings, Yes, DraftKings Offers Real Money Daily Fantasy Leagues

In terms of size, DraftKings is #2 behind FanDuel. They are the second largest daily style, or in the case of football, one week style fantasy site around. Like their nearest competitor, who is also a legit fantasy sports site, DraftKings offers real money fantasy sports contests that last the course of one day, or the weekend.

First place is going to walk with 1 Million bucks for an entry fee of $20!

DraftKings Is Legit – I personally, as well as hundreds of thousands of others, have played fantasy contests at DraftKings. I have deposited and cashed out successfully.

Is DraftKings Legal?

Yes, DraftKings is legal!

The reason for this is that fantasy sports are specifically carved out of the UIGEA. This means that unless a state has a specific law against playing real money fantasy football, baseball, or any other sport then it is legal. Today there are a small few states where players are not allowed at DraftKings or FanDuel.

We are not lawyers so this is not legal advice, however for USA based fantasy players you can deposit with PayPal and normal credit cards for simple deposits. To get more into the legality of daily fantasy sports check our our ‘is it legal’ page where we link out to guys with more legal expertise.

Is Draft Kings Honest?

Yes, the team behind DraftKings offers an honest, fair fantasy sports experience. If you win, you win and if you lose, well, you lose. You can lose money playing fantasy sports at DraftKings. It is similar to poker in a way where the unskilled players deposit and deposit and the skilled players make consistent money.

How Safe Is Draftkings

DraftKings does not care who wins the contests directly. They make their money by selling out all of the contests that they list in the lobby. The more players who play, the more rake is paid. Winning or losing does not affect DraftKings bottom line in terms of revenue generated. They don’t care, so they have no incentive to rig the games against you.

Winning Money On DraftKings

Can you really win $1,000,000 or $100,000 or $11,350 playing fantasy football on DraftKings? Yes, absolutely. If you can win one of the large GPP (guaranteed prize pool) contests that happen every week then you can absolutely really win some absolute monster sized prizes. And then there are of course, those smaller prizes for the smaller entry contests.

I personally have been in first place in the weekly fantasy golf and had $100k sitting in my ‘currently winning’ list. Sadly I didn’t finish in that position.

How To Get Started

It is simple to get started.

Is Draftkings Sportsbook Safe

• Visit DraftKings Here –
• Make an initial deposit – You can deposit as little as $5+
• Find a contest
• Draft your team and enter the contest
• Cheer on your players and watch your results on the leaderboard
• Cash out your winnings when the games are over

Is Draftkings Sportsbook Safe