Macquarie highlighted DraftKings (NASDAQ:DKNG) and Flutter Entertainment (NYSE:FLUT) as the top online stocks to own ahead of the college and pro football seasons.
Analyst Chad Beynon thinks the higher tax rates on sports betting in New Jersey, Illinois, and Louisiana are mostly priced into the share prices of DraftKings (NASDAQ:DKNG) and Flutter (NYSE:FLUT). Looking ahead, the sports betting giants are seen as best positioned for near-term upside from favorable NFL game outcomes, higher structural hold, and general OSB/iGaming growth momentum in Q4.
Crucially, sports betting operators have seen stronger hold rates recently after some disappointing quarters of having the House’s cut come in below expectations. Bettors fascination with higher-margin bets such as parlays and props has helped to boost results.
In July, FanDuel (FLUT) claimed 39.0% of the U.S. online sports betting market, and DraftKings (DKNG) had 34.4%. Fanatics/PointsBet was third with 7.9% market share, and Bet MGM (MGM) (OTCPK:GMVHF) was fourth with 7.0% market share. Caesars Sportsbook (CZR), Bet365, and ESPN Bet (PENN) were the only other sportsbook operators with more than 2% market share.
Total legal sports betting handle in the U.S. is on pace for approximately $164 billion across all sports in 2025, up 9.5% from 2024, with football (NFL and college) remaining the most dominant driver of wagering activity. Most of that growth is organic, with very few new sports betting markets being added over the last year.