Daily fantasy sports operator DraftKings has officially launched operations in Australia, even if it might not really want to anymore.
On Monday, DraftKings announced that its Australian site had officially opened for business. The launch marks the seventh jurisdiction outside DraftKings’ United States base that can now access the company’s DFS player pool.
DraftKings chief international officer Jeffrey Haas said the company had targeted Australia due to the country being “home to some of the most passionate sports fans in the world.” DraftKings is offering its Aussie customers a range of 10 different sports on which to build their fantasy models.
DraftKings announced the imminent launch of its Aussie site back in April, before the US Supreme Court struck down the federal prohibition on single-game sports wagering outside Nevada. The question is now whether DraftKings is as committed to expanding its international presence, at least, in terms of a DFS product.
To date, there’s been scant evidence that a DFS product can achieve significant popularity in any jurisdiction in which actual real-money sports betting is available. And Australia is lousy with sports betting options, both land-based and online.
Even in DraftKings’ home market, DFS hasn’t proven especially profitable. Last month’s merger of the US-facing business of UK-listed bookmaker Paddy Power Betfair with DraftKings’ archrival FanDuel revealed that Fanduel was only operating at “broadly EBITDA breakeven,” despite sharing a virtual duopoly of the US DFS market with DraftKings.
However, a potentially more lucrative option is now on the table. Last week, DraftKings announced that it had teamed with Atlantic City’s Resorts Casino Hotel on a partnership intended to take advantage of New Jersey’s imminent launch of single-game sports betting.
DraftKings has yet to announce who will provide its single-game sports wagering product, although Legal Sports Report‘s Dustin Gouker reported last week on a rumor that the company is discussing a possible acquisition by European online gambling operator Kindred Group, the parent company of Unibet.
