What DraftKings (DKNG)'s Record New York Revenue and ESPN Deal Means For Shareholders

• DraftKings recently reported record online sports betting revenue of US$89.1 million in New York for November and confirmed a multi-year deal making it ESPN’s official sportsbook and odds provider.
• These developments underline how access to a high-value market like New York, combined with ESPN’s media reach, could reshape DraftKings’ competitive position and operating scale.
• Against this backdrop, we’ll examine how the ESPN partnership might influence DraftKings’ investment narrative built around expansion and profitability.

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DraftKings Investment Narrative Recap

To own DraftKings, you need to believe that legal online betting can keep scaling while the company moves meaningfully toward profitability. The New York revenue record and ESPN deal reinforce the expansion story, but they do not directly resolve the near term risk around profitability pressures and the possibility of further tax or regulatory headwinds.

Among recent updates, DraftKings’ reaffirmed 2025 revenue guidance of US$5.9 billion to US$6.1 billion stands out alongside the ESPN partnership. Together, they highlight how management is leaning on both market growth and distribution agreements as key supports for its expansion and margin improvement narrative in the face of rising taxes and intense competition.

Yet behind the ESPN headlines, investors should also be aware of the mounting impact of higher state level taxation on DraftKings’ path to sustainable profits and...

Read the full narrative on DraftKings (it's free!)

DraftKings' narrative projects $9.5 billion revenue and $1.3 billion earnings by 2028. This requires 20.5% yearly revenue growth and about a $1.6 billion earnings increase from -$304.5 million today.

Uncover how DraftKings' forecasts yield a $44.81 fair value, a 29% upside to its current price.

Exploring Other Perspectives

Seven members of the Simply Wall St Community currently estimate DraftKings’ fair value between US$40.89 and US$96.10, reflecting a very wide spread of expectations. Against that backdrop, concentrated regulatory and tax risk could leave the business more exposed than some of these optimistic scenarios assume, so it is worth comparing several viewpoints before forming your own.

Explore 7 other fair value estimates on DraftKings - why the stock might be worth just $40.89!

Build Your Own DraftKings Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your DraftKings research is our analysis highlighting 3 key rewards that could impact your investment decision.
• Our free DraftKings research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate DraftKings' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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