Published on: August 27, 2025, 11:53h.
Updated on: August 27, 2025, 12:15h.
- Analyst favors DraftKings and Flutter for NFL opportunities in the near future
- Operators can expect simpler Q4 hold comparisons following last year’s player-friendly results
- Macquarie prefers the online sports betting segment
For investors keen to benefit from the 2025 football season, two prominent names should be at the forefront: DraftKings (NASDAQ: DKNG) and Flutter Entertainment (NYSE: FLUT), which operate the largest online sportsbooks in the United States.
In a recent analysis, Macquarie analyst Chad Beynon has identified DraftKings and FanDuel parent Flutter as the most promising online sports betting stocks this football season. He noted that although both stocks have appreciated this year, they still trail behind rivals like Rush Street Interactive (NYSE: RSI) and data-focused sports betting companies.
Beynon emphasizes that, following favorable NFL outcomes for players that impacted DraftKings and FanDuel in late 2024 and early 2025, the operators now face easier fourth-quarter comparisons this year. This, along with robust third-quarter growth and hold rates, sets the stage for potential gains in these stocks.
Beynon holds “outperform” ratings on DraftKings and Flutter, forecasting price targets that suggest mid- to high-teens upside from current values for both companies.
DraftKings and Flutter Favor In-Game Betting
One reason DraftKings and Flutter may excel this football season is their reduced reliance on pregame bets, such as point spreads and totals. Instead, they are expanding player prop bets, in-game wagers, and same-game parlays.
(DraftKings and Flutter) are relying less on game results for higher hold due to soaring interest in same-game parlays and in-play betting. We believe the risk/reward is favorable, particularly for DKNG, which trades at a significant discount on its free cash flow yield,” Beynon observes.
Dominance in live betting and same-game parlays is essential for DraftKings and FanDuel, especially as prediction markets increasingly enter the space typically occupied by traditional sports betting. While DraftKings, FanDuel, and their competitors offer same-game parlay and in-game betting features, firms like Kalshi do not.
Beynon also highlighted that despite anticipated losses from Missouri’s upcoming sports betting launch in December, EBITDA margins should show remarkable growth this year.
“We expect that if DKNG/FLUT maintain an actual hold of 10% or higher, US EBITDA margins could exceed 20%, even considering losses from Missouri’s December 1 launch,” Beynon adds. “This illustrates the strong operating leverage within the business and reassures investors about a long-term margin target of 30%.”
Additional Insights on Sports Betting
In related sports betting developments, Caesars Sportsbook has announced a new per-bet fee in Illinois as a response to a recent increase in the state’s sports betting tax. Beginning September 1, customers will incur a per-wager charge of 25 cents.
This fee will be displayed during the bet placement process and included in the bet slip, as well as in users’ transaction history,” as communicated by the gaming company to its customers in Illinois. “The adjustment will apply to all types of cash bets, including profit boost bets.”
Caesars Sportsbook joins DraftKings, Fanatics, and FanDuel in implementing per-bet fees in Illinois, while other operators have shifted to advising minimum bet amounts.