Gold bars to be exempt from tariffs, White House clarifies
On Wednesday, Barclays (LON:BARC) provided insights into the online sports betting (OSB) and internet gaming (iGaming) sectors, observing market share changes among prominent players. DraftKings (NASDAQ:DKNG), a key industry player with $14 billion in revenue and impressive 19% year-over-year growth, exemplifies the sector’s dynamics. According to the firm, February saw a continuation of the softer OSB handle growth trend from January, while gross gaming revenue (GGR) accelerated due to favorable win margin comparisons from the previous year. iGaming GGR growth remained strong, albeit with a slowdown month-over-month, attributed to challenging comparisons with the prior year’s figures.
FanDuel, a key player in the industry, experienced a mixed performance. While it lost approximately two percentage points in handle share month-over-month, it gained in both GGR and net gaming revenue (NGR) shares, with increases of one percentage point and eleven percentage points, respectively. Conversely, DraftKings saw its handle share grow by roughly one percentage point but faced declines in both GGR and NGR shares, dropping two percentage points and four percentage points month-over-month. According to InvestingPro, DraftKings shows promising fundamentals with analysts expecting continued sales growth this year. Subscribers can access 10+ additional exclusive ProTips and comprehensive valuation metrics.
In the iGaming segment, FanDuel’s GGR share improved by one percentage point on a month-over-month basis. DraftKings, on the other hand, saw a decrease in its share by one percentage point over the same period.
BetMGM’s performance exhibited stability in the iGaming GGR share, maintaining a constant 22% month-over-month. However, the company lost ground in the OSB market, with a one percentage point decline in GGR share. Its handle share remained steady at 8%, but it experienced a significant five percentage point drop in NGR share month-over-month.
These observations by Barclays highlight the shifting dynamics within the OSB and iGaming markets, as companies like FanDuel and BetMGM navigate the competitive landscape, and DraftKings faces challenges in maintaining its market share. With a market capitalization of $41.8 billion and currently trading above its InvestingPro Fair Value, DraftKings remains a closely watched player in this evolving sector. For detailed analysis and valuation metrics, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
In other recent news, Flutter Entertainment reported a 19% increase in revenue for the full year 2024, alongside a 26% rise in adjusted earnings before interest, taxes, depreciation, and amortization (AEBITDA), driven largely by its U.S. operations. Following this performance, Benchmark analysts raised their price target for Flutter Entertainment to $300 while maintaining a Buy rating. Additionally, UBS analyst Ben Shelley reaffirmed a Buy rating with a $340 price target, highlighting potential growth in iGaming and net win margins. Stifel analysts also reiterated a Buy rating with a $320 price target, noting that Flutter’s fiscal year 2025 guidance aligns with market expectations. The company recently announced a share repurchase program, indicating confidence in its financial stability and future prospects. Furthermore, Flutter Entertainment filed a regulatory announcement concerning the block listing of its ordinary shares, adhering to the UK Financial Conduct Authority’s rules. These developments reflect Flutter’s strategic initiatives and its continued presence in the global market.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.