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Yahoo
16-07-2025
- Business
- Yahoo
Is DraftKings Winning the Customer Acquisition War in Sports Betting?
DraftKings Inc. DKNG appears to be outpacing rivals in the customer acquisition battle across the competitive sports betting landscape. In first-quarter 2025, the company posted robust metrics that point to strong user growth and retention strategies, underpinned by efficient promotional spending and expanding product customer acquisition was consistent with expectations, but what stands out is the efficiency with which DraftKings is scaling. Marketing costs are being optimized as the company continues to benefit from brand equity, improved promotional targeting and favorable advertising conditions in digital media. These dynamics contributed to better gross margins and EBITDA performance despite challenging sports is helping DraftKings stand apart is its investment in product innovation. More than 50% of the total handle in first-quarter 2025 came from live betting for the first time. This growing engagement reflects the successful integration of acquisitions like SimpleBet and Sports IQ, which enhance real-time wagering and keep users actively engaged. Additionally, DraftKings is seeing a healthy uptick in parlay and same-game parlay adoption, popular bet types with higher structural hold with customer-friendly outcomes dampening actual sportsbook hold (down to 9.5%), structural hold rose to 10.4%, indicating DraftKings' underlying profitability engine is strengthening. Moreover, as newly acquired users mature, promotional intensity declines while contribution profit rises, a pattern DraftKings is managing effectively across data-driven, product-led approach is yielding results. With improved live betting features, a loyal user base and scalable promotional spend, the company is well-positioned to maintain its lead in the ongoing customer acquisition war in U.S. sports betting. How DraftKings Stacks Up Against FanDuel and BetMGM In the race for sports betting dominance, FanDuel and BetMGM remain DraftKings' closest competitors, but recent trends show it pulling ahead on multiple owned by Flutter Entertainment plc FLUT, continues to lead in market share but is starting to face pressure. DraftKings' surging live betting handle and product enhancements are narrowing the gap, especially in states where FanDuel once held a clear lead. Unlike FanDuel's heavier reliance on aggressive promotions, DraftKings is proving more efficient in customer acquisition and BetMGM, backed by MGM Resorts International MGM and Entain, has struggled to match DraftKings' pace in product innovation. Though BetMGM boasts strong iGaming performance, it lags in sportsbook engagement. DraftKings' seamless integration of acquired tech and rapid adoption of features like same-game parlays and live micro-bets gives it a distinct edge. DKNG's Price Performance, Valuation & Estimates Shares of DKNG have gained 30.3% in the past three months compared with the industry's growth of 31.2%. Price Performance Image Source: Zacks Investment Research DraftKings is currently trading at a premium compared with the industry peers, with a forward 12-month price-to-sales ratio of 5.69X. P/S (F12M) Image Source: Zacks Investment Research The Zacks Consensus Estimate for DKNG's 2025 and 2026 earnings implies a year-over-year uptick of 226.7% and 61.3%, respectively. Image Source: Zacks Investment Research DKNG currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report MGM Resorts International (MGM) : Free Stock Analysis Report DraftKings Inc. (DKNG) : Free Stock Analysis Report Flutter Entertainment PLC (FLUT) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Globe and Mail
16-07-2025
- Business
- Globe and Mail
Is DraftKings Winning the Customer Acquisition War in Sports Betting?
DraftKings Inc. DKNG appears to be outpacing rivals in the customer acquisition battle across the competitive sports betting landscape. In first-quarter 2025, the company posted robust metrics that point to strong user growth and retention strategies, underpinned by efficient promotional spending and expanding product engagement. New customer acquisition was consistent with expectations, but what stands out is the efficiency with which DraftKings is scaling. Marketing costs are being optimized as the company continues to benefit from brand equity, improved promotional targeting and favorable advertising conditions in digital media. These dynamics contributed to better gross margins and EBITDA performance despite challenging sports outcomes. What is helping DraftKings stand apart is its investment in product innovation. More than 50% of the total handle in first-quarter 2025 came from live betting for the first time. This growing engagement reflects the successful integration of acquisitions like SimpleBet and Sports IQ, which enhance real-time wagering and keep users actively engaged. Additionally, DraftKings is seeing a healthy uptick in parlay and same-game parlay adoption, popular bet types with higher structural hold rates. Even with customer-friendly outcomes dampening actual sportsbook hold (down to 9.5%), structural hold rose to 10.4%, indicating DraftKings' underlying profitability engine is strengthening. Moreover, as newly acquired users mature, promotional intensity declines while contribution profit rises, a pattern DraftKings is managing effectively across jurisdictions. DraftKings' data-driven, product-led approach is yielding results. With improved live betting features, a loyal user base and scalable promotional spend, the company is well-positioned to maintain its lead in the ongoing customer acquisition war in U.S. sports betting. How DraftKings Stacks Up Against FanDuel and BetMGM In the race for sports betting dominance, FanDuel and BetMGM remain DraftKings' closest competitors, but recent trends show it pulling ahead on multiple fronts. FanDuel, owned by Flutter Entertainment plc FLUT, continues to lead in market share but is starting to face pressure. DraftKings' surging live betting handle and product enhancements are narrowing the gap, especially in states where FanDuel once held a clear lead. Unlike FanDuel's heavier reliance on aggressive promotions, DraftKings is proving more efficient in customer acquisition and retention. Meanwhile, BetMGM, backed by MGM Resorts International MGM and Entain, has struggled to match DraftKings' pace in product innovation. Though BetMGM boasts strong iGaming performance, it lags in sportsbook engagement. DraftKings' seamless integration of acquired tech and rapid adoption of features like same-game parlays and live micro-bets gives it a distinct edge. DKNG's Price Performance, Valuation & Estimates Shares of DKNG have gained 30.3% in the past three months compared with the industry's growth of 31.2%. Price Performance Image Source: Zacks Investment Research DraftKings is currently trading at a premium compared with the industry peers, with a forward 12-month price-to-sales ratio of 5.69X. P/S (F12M) Image Source: Zacks Investment Research The Zacks Consensus Estimate for DKNG's 2025 and 2026 earnings implies a year-over-year uptick of 226.7% and 61.3%, respectively. DKNG currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Only $1 to See All Zacks' Buys and Sells We're not kidding. Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent. Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators, and more, that closed 256 positions with double- and triple-digit gains in 2024 alone. See Stocks Now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report MGM Resorts International (MGM): Free Stock Analysis Report DraftKings Inc. (DKNG): Free Stock Analysis Report Flutter Entertainment PLC (FLUT): Free Stock Analysis Report
Yahoo
03-07-2025
- Business
- Yahoo
Bernstein Reaffirms Buy Rating on DraftKings, Citing Live Betting and Jackpocket Synergies
DraftKings Inc. (NASDAQ:DKNG) ranks among the 30 stocks expected to beat the market by 20 percentage points this year. An Outperform rating on DraftKings Inc. (NASDAQ:DKNG) with a price target of $46 was reaffirmed by Bernstein SocGen Group on June 16. The firm noted what it calls the company's 'compelling and differentiated investment case' in the context of online sports betting and iGaming. One of DraftKings' primary advantages, according to the firm, is its improved live pricing capabilities, which were 'significantly boosted by the SimpleBet acquisition.' These capabilities, according to Bernstein, enable the company to capture significant growth in the US live betting market while delivering strong handle and profitability growth. Additionally, the company found unrealized potential in cross-selling Jackpocket to live betting clients. One major looming driver for DraftKings Inc. (NASDAQ:DKNG) was the incorporation of Jackpocket into the company's core platform. Bernstein's optimistic assessment of DraftKings remains focused on user profitability, as the firm projects average revenue per user growth in the mid-single digits. DraftKings Inc. (NASDAQ:DKNG) is a digital sports entertainment and gaming company that offers sports betting, digital lottery courier, daily fantasy sports, and other products. Additionally, it offers online casino games, including roulette, slot machines, blackjack, and baccarat. While we acknowledge the potential of DKNG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. Read More: and Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
02-07-2025
- Business
- Yahoo
Bernstein Reaffirms Buy Rating on DraftKings, Citing Live Betting and Jackpocket Synergies
DraftKings Inc. (NASDAQ:DKNG) ranks among the 30 stocks expected to beat the market by 20 percentage points this year. An Outperform rating on DraftKings Inc. (NASDAQ:DKNG) with a price target of $46 was reaffirmed by Bernstein SocGen Group on June 16. The firm noted what it calls the company's 'compelling and differentiated investment case' in the context of online sports betting and iGaming. One of DraftKings' primary advantages, according to the firm, is its improved live pricing capabilities, which were 'significantly boosted by the SimpleBet acquisition.' These capabilities, according to Bernstein, enable the company to capture significant growth in the US live betting market while delivering strong handle and profitability growth. Additionally, the company found unrealized potential in cross-selling Jackpocket to live betting clients. One major looming driver for DraftKings Inc. (NASDAQ:DKNG) was the incorporation of Jackpocket into the company's core platform. Bernstein's optimistic assessment of DraftKings remains focused on user profitability, as the firm projects average revenue per user growth in the mid-single digits. DraftKings Inc. (NASDAQ:DKNG) is a digital sports entertainment and gaming company that offers sports betting, digital lottery courier, daily fantasy sports, and other products. Additionally, it offers online casino games, including roulette, slot machines, blackjack, and baccarat. While we acknowledge the potential of DKNG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. Read More: and Disclosure: None. Inicia sesión para acceder a tu portafolio
