DraftKings Vs. Flutter: Analyst Lays Out Bull Vs. Bear Debate With Sports Betting Market 'Increasingly Functioning As A Duopoly'
Portfolio Pulse from Chris Katje
DraftKings and Flutter Entertainment are seen as a duopoly in the U.S. sports betting market. Analyst Bernie McTernan maintains a Buy rating on DraftKings with a $60 price target, highlighting debates on EBITDA targets, tax surcharges, and competition. DraftKings faces challenges with lower hold rates compared to Flutter's FanDuel and higher state taxes. However, its technology stack and national marketing could help scale margins.
August 19, 2024 | 6:06 pm
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DraftKings is seen as part of a duopoly in the U.S. sports betting market. Analyst Bernie McTernan reiterates a Buy rating with a $60 price target. Challenges include lower hold rates compared to Flutter's FanDuel and higher state taxes, but technology and marketing could help scale margins.
The analyst's reiteration of a Buy rating and a $60 price target suggests a positive outlook for DraftKings. Despite challenges like lower hold rates and tax issues, the company's technology and marketing strategies are seen as potential growth drivers.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
Flutter Entertainment, through its FanDuel brand, is part of a duopoly in the U.S. sports betting market. It is seen as having a structural advantage over DraftKings, with lower promotions in Illinois and no plans for a surcharge on winning bets.
Flutter's FanDuel is perceived as having a competitive edge over DraftKings, with strategic decisions like not imposing a surcharge on winning bets. This positions Flutter favorably in the market.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80