DraftKings: Riding The Sports Betting Wave

Summary:

• DraftKings shows strong Q3 earnings with 39% YoY revenue growth, despite regulatory and tax headwinds impacting the sports betting industry.
• The investment thesis hinges on DKNG’s aggressive marketing, duopoly with FanDuel, and potential growth in new states and international markets.
• Risks include potential tax increases and regulatory changes that could impact profitability and market position.
• DKNG is a margin expansion story with a favorable valuation, suggesting potential for growth over the next 3–5 years.

Introduction

DraftKings Inc. (NASDAQ:DKNG) is a stock I’ve followed for a long term and has a small position in, mainly as a long-term bet on the continued huge growth of sports betting as regulations ease up across

Analyst’s Disclosure: I/we have a beneficial long position in the shares of DKNG either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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