Published: February 12, 2024, 03:45h.
Last edited on: February 12, 2024, 03:45h.
Following the Kansas City Chiefs winning the Super Bowl as underdogs, the losses experienced by regulated sportsbooks during the big game may be outweighed by the long-term prospects for online betting stocks.
Among the top players in the space are DraftKings (NASDAQ: DKNG) and FanDuel parent Flutter Entertainment (NYSE: FLUT), with Flutter gaining attention for its recent NYSE listing.
It could also open up new markets or financing opportunities and also allow the company to retain and obtain new talent. All these things can help its competitive positioning,” noted Morningstar analyst Dan Wasiolek.
Flutter is now the second-largest gaming company trading on a US exchange, following Las Vegas Sands (NYSE: LVS).
DraftKings, Flutter Primary Rivals Among Online Betting Stocks
DraftKings and Flutter are primed to be a compelling rivalry among online betting stocks due to their strong market presence, accounting for approximately 70% market shares in the US.
Other large mobile sportsbook operators, including BetMGM, Caesars Sportsbook, and ESPN Bet, are tied to traditional casino operators, while Fanatics is a privately held company.
Following the debut of ESPN Bet in November, data indicates changes in market share for top players in the US sports betting industry.
More Legalization Could Boost Online Betting Stocks
Some analysts believe that more states could follow in the steps of New York, generating substantial tax revenue through sports betting.
“Now, the incentive for these states to legalize sports betting is, one major driver would be generating tax revenue, which can be quite substantial,” concluded Morningstar analyst Dan Wasiolek. “So it can be quite substantial for state budgets.”