DraftKings (NASDAQ:DKNG), BetMGM to Achieve from Surge in Tremendous Bowl Betting

DraftKings (NASDAQ:DKNG), BetMGM (co-owned by MGM Resorts (NYSE:MGM) and Entain Plc (GB:ENT)), Flutter Leisure’s FanDuel, and Caesars Leisure (NASDAQ:CZR) are anticipated to profit from the report bets on this weekend’s Tremendous Bowl recreation between the Philadelphia Eagles and the Kansas Metropolis Chiefs, as a number of states throughout the U.S. have legalized sports activities betting.

The Tremendous Bowl LVII, to be held in Glendale, Arizona, would be the first Nationwide Soccer League (NFL) championship to be performed in a state that has legalized sports activities betting. Commerce group American Gaming Affiliation (AGA) tasks that the variety of American adults anticipated to guess on Tremendous Bowl LVII might improve 61% to 50.4 million. Moreover, bets value $16 billion are anticipated to be positioned on Sunday’s Tremendous Bowl, which is greater than double final 12 months’s estimate of $7.6 billion.

Enlargement of Authorized Sports activities Betting

AGA’s estimates are based mostly on a survey of about 2,200 American adults. The survey additional reveals that about 30 million (up 66% from final 12 months) Individuals plan to position sports activities wagers on-line, in particular person at a retail sportsbook, or with unlawful bookies. In the meantime, 28 million Individuals (up 50% from final 12 months) intend to guess casually with pals or by means of swimming pools and contests.

Moreover, the AGA survey revealed that about 34% of NFL followers really feel that the enlargement of authorized sports activities betting has made “watching an NFL recreation extra thrilling.” At present, sports activities betting is authorized in 33 states and Washington, D.C., with three further authorized markets awaiting launch.

AGA President and CEO Invoice Miller acknowledged, “Yearly, the Tremendous Bowl serves to spotlight the advantages of authorized sports activities betting: bettors are transitioning to the protections of the regulated market, leagues and sports activities media are seeing elevated engagement, and authorized operators are driving wanted tax income to states throughout the nation.”

Whereas AGA’s $16 billion estimate appears encouraging, it features a substantial quantity of unlawful bets. PlayUSA, an internet site that covers legalized playing, estimates that authorized sportsbooks throughout the U.S. might see bets value greater than $1.1 billion, up from $947 million final 12 months.

Let’s take a look at two shares that might profit from a good backdrop for authorized sports activities betting.

Is DraftKings a Purchase?

Wall Road is cautiously optimistic about DraftKings as a consequence of a slowdown in its top-line progress and profitability issues. The corporate’s efforts to enhance its backside line and the potential legalization of sports activities betting in further states might improve the corporate’s place.

The Average Purchase consensus ranking for DraftKings is predicated on seven Buys, 5 Holds, and one Promote. The common DKNG inventory value goal of $17.75 implies that shares could possibly be vary sure within the months forward. Shares have rallied over 55% to this point in 2023.

Is MGM Resorts Worldwide a Good Inventory to Purchase?

On Wednesday, MGM Resorts reported upbeat This autumn 2022 income however a higher-than-anticipated adjusted loss per share. It expects higher enterprise in 2023 as a consequence of MGM China’s return to profitability and the continued enchancment at BetMGM.

MGM is gaining from the fast progress of its BetMGM three way partnership. BetMGM is anticipated to ship income within the vary of $1.8 billion to $2 billion in 2023, up from practically $1.4 billion in 2022.

It’s anticipated to show EBITDA constructive within the second half of 2023. BetMGM claims to be a pacesetter within the iGaming house with a 30% market share. It has a market share of 13% within the on-line sports activities betting market.  

Wall Road’s Sturdy Purchase consensus ranking for MGM Resorts is predicated on seven Buys and two Holds. At $50.17, the typical MGM inventory value goal suggests 21.1% upside potential. Shares have risen 24% year-to-date.  


Tremendous Bowl betting is estimated to achieve $16 billion this 12 months, together with authorized bets and people positioned with unlawful bookies or casually amongst pals or family. Nonetheless, corporations like DraftKings are anticipated to realize from an increase within the variety of U.S. states which have legalized sports activities betting.


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