| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
DraftKings Inc. (LSE: 0ABA.L) is a leading digital sports entertainment and gaming company headquartered in Boston, Massachusetts. Operating in the high-growth online gambling and sports betting sector, DraftKings offers multi-channel sports betting, iGaming, and daily fantasy sports (DFS) across multiple U.S. states and international markets. The company’s flagship products include DraftKings Sportsbook, live in 18 states, and its iGaming platform available in five states, including through its Golden Nugget Online Gaming brand. Additionally, DraftKings has expanded into digital collectibles via DraftKings Marketplace, offering NFTs, and owns VSiN, a sports betting-focused media network. With a strong presence in the U.S. market and a growing international DFS footprint, DraftKings is positioned at the forefront of the rapidly evolving sports betting and online gaming industry. The company’s diversified revenue streams and technological innovation make it a key player in the consumer cyclical sector.
DraftKings presents a high-risk, high-reward investment opportunity in the fast-growing online sports betting and iGaming industry. The company benefits from strong revenue growth ($4.77B in FY 2024) and expanding market penetration, but remains unprofitable with a net loss of $507M. Its high beta (1.888) reflects significant volatility, making it sensitive to regulatory changes and macroeconomic conditions. Positive operating cash flow ($417M) suggests improving unit economics, but high debt ($1.34B) and no dividend policy may deter conservative investors. Long-term prospects depend on continued U.S. market expansion, regulatory tailwinds, and effective cost management.
DraftKings holds a strong competitive position in the U.S. online sports betting and iGaming market, leveraging its first-mover advantage in DFS and aggressive state-by-state expansion. Its key strengths include a well-recognized brand, a vertically integrated platform (sportsbook, iGaming, DFS, NFTs), and strategic acquisitions like Golden Nugget Online Gaming. However, competition is intensifying, with well-capitalized rivals such as FanDuel (Flutter Entertainment) and BetMGM (MGM Resorts) dominating market share in key states. DraftKings’ technology stack and user experience are competitive, but its reliance on heavy marketing spend to acquire customers remains a concern. The company’s ability to achieve profitability while fending off deep-pocketed competitors will be critical. Its ownership of VSiN provides a unique content differentiation, but monetization remains unproven. DraftKings’ international DFS presence offers diversification, but its primary growth driver remains U.S. state-level legalization, which is progressing but uneven.