DAVY VIEW

DraftKings reported a relatively good Q1, ahead of our forecasts, driven by Sportsbook. Focus quickly shifts to the guidance where the midpoint of the revenue and EBITDA ranges have been held constant. The CEO again highlights that Prediction Markets are not having a discernible impact on its (regulated) Sportsbook business. Its own Prediction Markets app is now live in its flagship app and it is making progress on product rollout, noting that it increasingly sees its Sportsbook capability as a key advantage in the Prediction Markets space. At first glance, we will not make meaningful changes to our forecasts, which is encouraging in the context of the bearish sentiment towards the sector.