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Investing.com - Benchmark maintained its Buy rating and $53.00 price target on DraftKings Inc. (NASDAQ:DKNG) on Friday as the sports betting company, currently valued at $22.85 billion and showing impressive year-to-date returns of 23.9%, navigates the emerging prediction markets landscape.
The research firm identified prediction markets as the next competitive battleground between industry leaders DraftKings and FanDuel in the U.S. sports betting sector.
Benchmark noted that Flutter, FanDuel’s parent company, has already established a federally regulated joint venture with CME Group (NASDAQ:CME) to enter this space, positioning itself for compliance, credibility, and faster market entry.
DraftKings has not yet announced its strategy, though Benchmark outlined several potential approaches including acquisition (with rumors pointing to Railbird), regulatory filings, or hybrid models that could create competitive differentiation.
The research firm specifically highlighted Railbird’s strategic importance, suggesting it represents the only path that would give DraftKings immediate entry into prediction markets before the 2025 NFL season, bypassing the typical 12-18 month timeline for license approval.
In other recent news, DraftKings Inc. announced it has secured a direct mobile sports betting license from the Missouri Gaming Commission. This license allows DraftKings to operate independently across Missouri, with its online sportsbook expected to launch on December 1, 2025, pending final regulatory approvals. In financial updates, DraftKings reported second-quarter revenue of $1,513 million, marking a 37% increase year-over-year. This figure surpassed both Guggenheim’s estimate of $1,388 million and the consensus forecast of $1,424 million. Following these results, Guggenheim maintained a Buy rating on DraftKings with a $60 price target. Additionally, Susquehanna raised its price target for DraftKings to $64 from $60, maintaining a Positive rating. Meanwhile, Robinhood Markets (NASDAQ:HOOD) has launched new pro and college football prediction markets on its platform. This integration allows users to trade on outcomes of professional and college football games through its Prediction Markets Hub.
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