DraftKings, Flutter Top Betting Stocks for Football Season, Says Macquarie
Posted on: August 27, 2025, 11:53h.
Last updated on: August 27, 2025, 12:15h.
- DraftKings and Flutter are best positioned for near-term NFL upside, says analyst
- Operators face easier Q4 hold comparisons following customer-friendly outcomes last year
- Online is Macquarie’s preferred gaming sub-segment
Investors looking to capitalize on the 2025 football season may not need to look beyond a pair of familiar names. Those being DraftKings (NASDAQ: DKNG) and Flutter Entertainment (NYSE: FLUT) — the operators of the two largest US internet sportsbooks.
In a new report to clients, Macquarie analyst Chad Beynon proclaimed DraftKings and FanDuel owner Flutter as the top online wagering equities to own into football season. He acknowledged that while shares of both stocks are higher this year, they’re lagging rival Rush Street Interactive (NYSE: RSI) and sports betting data names.
Beynon points out that following the customer-friendly NFL outcomes that plagued DraftKings and FanDuel in late 2024 and in the first quarter, the operators face easier fourth-quarter comparisons this year. That, coupled with sturdy third-quarter hold and growth rates, could set the stage for upside in the two betting stocks.
Beynon has “outperform” ratings on DraftKings and Flutter with price targets implying mid- to high-teens upside from current levels for both names.
DraftKings, Flutter Less Dependent on Pregame Bets
Among the reasons DraftKings and Flutter could deliver for investors this football season are the operators’ reduced dependence on pregame wagers, such as sides and totals, and their increased offerings of player propositions, in-game wagering, and same-game parlays.
(DraftKings and Flutter) are increasingly becoming less dependent on game outcomes for higher hold due to strong growth in same-game parlays/prop bets and now in-play betting, we think the risk/reward is skewed to the upside, particularly for DKNG which trades at a significant free cash flow yield discount,” observes Beynon.
Leadership in the live betting and same-game parlay arenas is crucial for DraftKings and FanDuel at a time when prediction markets are further encroaching on their traditional sports wagering territory. DraftKings, FanDuel, and their industry rivals have in-game and same-game parlay capabilities, while Kalshi and other derivatives firms do not.
Beynon also noted that even with expected losses on the December launch of sports betting in Missouri, earnings before interest, taxes, depreciation, and amortization (EBITDA) margins should grow impressively this year.
“We note that if DKNG/FLUT achieve actual hold of 10%+, we expect to see US EBITDA margins into the 20%+ range, despite losses from Missouri’s December 1 launch,” adds Beynon. “This would not only highlight strong operating leverage embedded in the business, but reassure investors in the long-term margin target of 30%.”
More Sports Betting Tidbits
In other sports betting news, Caesars Sportsbook is the latest gaming company to introduce a per-bet fee in Illinois in response to that state’s recent sports wagering tax hike. The gaming company said Tuesday that starting September 1, it will charge customers a per-wager levy of 25 cents.
This will be shown during bet placement and indicated in the bet slip and can also be found in your bet and transaction history,” according to a message from the gaming company to its Illinois customers. “The change will apply to all cash bet types and include profit boost wagers.”
Caesars Sportsbook joins DraftKings, Fanatics, and FanDuel in assessing per-bet fees in Illinois, while other operators there have moved to minimum bet sizes.
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