12 Best Gambling Stocks to Buy According to Analysts

Page 6 of 10

5. DraftKings Inc. (NASDAQ:DKNG)

Analysts’ Upside Potential as of April 11: 62.01%

DraftKings Inc. (NASDAQ:DKNG) is a major force in the online sports betting industry and one of the Best Casino Stocks. The firm has established a competitive advantage over traditional casino-operated sportsbooks by providing a world-class user interface and a strong brand presence. The company is already legal in 25 states and is growing its reach as new markets emerge. Its solid market positioning, continuous state-by-state legalization, and focus on profitability make it an excellent investment prospect.

During the COVID-19 pandemic, social alienation and directives to stay at home fueled a rise in online sports betting and gambling. Even after the COVID-19 pandemic ended, its sales continued to climb. The company’s business shows strong operating leverage. Its fiscal Q4 2024 earnings climbed 30% to $4.8 billion over the prior year. For the first time, free cash flow was positive, and adjusted EBITDA rose $332 million year on year to $181 million. DraftKings Inc. (NASDAQ:DKNG) also gained 3.5 million new customers at record-low acquisition costs, bringing its total client base to $10.1 million, representing a 42% increase YoY.

On Super Bowl Sunday, the DraftKings Sportsbook app reached its highest ranking in the App Store, ranking third overall and first in the sports category. The online gambling company recorded the highest gross gaming revenue day in its history, with a sportsbook handle of $436 million. DraftKings Inc. (NASDAQ:DKNG) boosted its fiscal year 2025 revenue prediction from $6.3 billion to $6.6 billion, marking a 32% to 38% rise over the previous year due to planned expenditures in live betting.

Page 6 of 10