The unstoppable march of the gambling giants
There’s an old adage in the gambling business: “You never hear anyone say ‘I used to be a bookie but then I went broke.’” So if you’re betting on the DraftKings sportsbook app going under soon, even though the company lost $242 million in the fourth fiscal quarter of last year, you’re as big a sucker as the people who think they’re going to get rich by hitting a ten-team parlay. The company brought in $855 million in revenue in the same time period, up 81 percent from the previous quarter, and increased its user base to 2.6 million, up 31 percent. It only lost money because it spent a fortune on advertising and promotions, which, given the other numbers, have clearly been successful.