The world of online sports betting has exploded in popularity, and DraftKings (NASDAQ: DKNG) is at the forefront of this rapidly growing industry. In 2024, 29 states permit online sports betting, and despite this relatively limited market size, DraftKings has already demonstrated remarkable growth.
Stellar Financial Performance
In its most recent earnings report, DraftKings posted a fourth-quarter revenue of $1.231 billion, a 44% increase from the previous year. This growth was driven by a significant increase in customer engagement, expansion in the selection of sports available for betting, and continuous product improvements.
DraftKings anticipates a revenue midpoint of approximately $4.775 billion this year, fueled by its expanding business. Given that this success is based on the current limited number of states where sports betting is legalized, there is considerable room for the company to expand and maintain its impressive growth trajectory in the coming years.
Strategic Expansion through Acquisitions
DraftKings has been actively growing its customer base and enhancing its potential through strategic acquisitions. Its recent acquisition of Jackpocket, a lottery app, has broadened DraftKings’ market reach and added to its growing potential. This move signals the company’s intent to diversify and fortify its position in the online gambling industry.
Underrated Growth Potential
While DraftKings’ stock may not be the cheapest, its growth potential in the online sports betting industry is substantial and often underestimated. As more states move towards legalization and the industry continues to gain momentum, DraftKings is well-positioned to capitalize on this growth. For investors looking for an opportunity in a high-growth industry, now might be the ideal time to buy into DraftKings and watch it soar.