DraftKings (DKNG) released its fourth-quarter earnings results, revealing a rise in its quarterly revenue by 44% year-over-year. In addition, the company announced a $750 million deal to buy lottery app Jackpot while continuing to expand sports betting operations into new states. Macquarie Group Senior Analyst Chad Beynon joins Yahoo Finance to discuss DraftKings' performance and expected operations costs for 2024. "Sales and marketing for 2023 was roughly flat. It was up 3% for the year, right And they actually got into some of the new markets that you talked about. For 2024, despite getting into new markets like North Carolina and Puerto Rico, sales and marketing spend will actually come down," Beynon explains. "And the reason is the older cohort states will just see less advertising, so if you're in a state like New Jersey, who's been legal for some time, sorry to say that you'll probably see fewer ads on some of the sports channels. That's a big driver of profits for Draftkings, and that's kind of where this scale is finally... taking over where sales and marketing, SG&A, are roughly going to be flat for the next couple years." For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live. Editor's note: This article was written by Nicholas Jacobino

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