DraftKings shares are surging after the online sports gambling company reported sharply higher quarterly revenue as it signed on new bettors at a faster pace.
The company also said customer-acquisition costs such as marketing fell sharply. Shares were up 16% in afternoon trading.
DraftKings is the second-largest online sports-betting operator in the U.S. behind FanDuel. The rivals hold an estimated 75% of the online sports-betting market.