Sports Betting Boom: Opportunity for DraftKings?

both in college and professional settings - draws fans in droves to the screens. But it's not just athletic achievements vying for attention; sports betting providers are also ubiquitous with their marketing campaigns. A prominent player in this arena is DraftKings, whose aggressive advertising strategies permeate public consciousness. Despite positive business developments, DraftKings' stock has lost about 45% of its value since peaking in March 2021. However, long-term investors might see opportunities, as the steadily growing number of sports bettors in the U.S. - a trend that only began gaining momentum in 2018 when the U.S. Supreme Court legalized sports betting - offers considerable growth potential. In the second quarter of the current year, DraftKings counted 3.1 million monthly users, with an expected increase in sports bettors of 45% by 2029. Although DraftKings will not capture every new user, the company is well-positioned as a market leader to grow at least proportionally. DraftKings' core operations recorded losses of $32.4 billion in the second quarter, a notable improvement from the $69 billion in the same period the previous year. A final unprofitable year is expected in 2024, before a turnaround could occur in 2025 with a projected EBITDA between $900 million and $1 billion. Sports betting seems to be here to stay. In their current phase, they offer significant development potential. DraftKings could continue to play a leading role in this expanding field in the coming years. A current stock price that may seem like a bargain today could shine as a smart investment in a few years.