The prominent U.S. sports betting firm DraftKings is considering a share buyback of up to $18 billion over the next decade, as indicated by Morningstar analyst Dan Wasiolek, who believes the company’s financial standing enables a robust capital return strategy.

“We assess DraftKings’ financial position as exceptionally strong,” Wasiolek remarked in an analysis note. “The firm is in a net cash situation, expected to finish 2024 with $1.33 billion in cash, countered by $1.26 billion in long-term liabilities due in 2028. Additionally, DraftKings has $500 million accessible in a revolving credit facility.”

Based in Boston, DraftKings is currently implementing a $1 billion share buyback initiative initiated last year, having retired 6.5 million shares during the first part of 2025. Although there have been no additional share repurchase authorizations announced, Morningstar suggested future buybacks could total $18 billion—substantial compared to DraftKings’ market valuation of $22.69 billion.

Morningstar emphasized DraftKings’ competitive edge vis-a-vis rival FanDuel, assigning it a narrow moat rating. “Despite fierce competition and potential regulatory tightening, we believe DraftKings’ advanced technology and product range confer a brand advantage,” Wasiolek added.

The firm anticipates a 21% compound annual growth rate in revenue through 2029, driven by investments in product development, in-game betting options, and a proprietary tech platform acquired in 2020.

On August 19, DraftKings shares dropped by 1.49%, leading to a market capitalization of $22.69 billion, with a trading volume of $480 million, positioning it as the 196th most active stock in the U.S.