00:00Okay, so DraftKings, DraftKings certainly doing just fine hearing this news is a very small percentage of the market share. I get that, but they can eat some of that as well. And we also know prediction markets are coming to DraftKings as well. What does the latest earnings call say to them? I'm guessing they're feeling pretty good about where they stand.
00:17Yeah, it was a really big news day yesterday. For DraftKings specifically, they get the ESPN partnership. And then they also announced that they're going to be doing sports prediction markets on top of their quarterly revenue release that they put out yesterday. It's the most bullish CEO Jason DraftKings has ever felt about the company, which is interesting because it comes despite a quarter that really wasn't great.
00:42You know, revenue was only up 4% and it was lower than is about 8% lower than Wall Street's estimates. That, of course, was something on the back of something we've talked about, which is the awful NFL results to start the season for the sports books that caused about a $300 million impact to their revenue.
01:01But DraftKings is focused on sports prediction markets now in states where it doesn't have sports betting. States like California, states like Texas and Georgia, presumably, where we've seen a lot of news around prediction markets, basically because they're able to take bets in states where DraftKings so far has not been able to.
01:18DraftKings says it's going to launch the sports prediction markets by the end of the year or early next year, which we reported earlier last week was going to happen.
01:25For DraftKings, it's about just expanding its market. It's not a huge business compared to sports betting right now. The margins are much smaller. The product is not the same exactly. So you make money a different way. But for DraftKings, it's about getting people to sign up for DraftKings in those states.
01:41And then once those states supposedly or eventually legalized sports betting, which, again, DraftKings hopes that the prediction markets will encourage to happen or kind of expedite, that DraftKings has those users already, kind of like it did with Daily Fantasy Sports.
01:55So, yeah, not the best quarter for DraftKings, but the long-term outlook, at least according to the executives, remains pretty positive, especially with the ESPN bet deal.
02:03Now they're going to have the exclusive odds provider for about two-thirds of all nationally televised NBA games this season.
02:11And NBA betting has also been a huge emphasis for it. It's up about 17% over a year. I think they really want to own that sport compared to anything else right now.
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