Financial

Macquarie Trims Price Targets for DraftKings, Flutter Ahead of Q3 Earnings

Posted on: October 8, 2026, 11:04h.

Last updated on: October 9, 2026, 06:09h.

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Todd Shriber Todd Shriber is a senior news reporter covering gaming financials, casino business, stocks, and mergers and acquisitions for Casino.org. Todd got his start in financial markets as a reporter with Bloomberg News...
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Key Points

Macquarie analyst Chad Beynon slightly lowered price targets across sports betting operators ahead of third-quarter earnings, including trimming DraftKings to $34 (from $38) and Flutter Entertainment to $128 (from $150)
The firm maintains an overall bullish "Outperform" stance on the sector, projecting 6% growth in online sports betting revenue and an 18% rise in iGaming revenue despite seasonal softness in August
Analysts highlight surging activity in prediction markets—driven by the start of the football season and summer soccer momentum—as a key focal point for institutional investors during upcoming earnings calls

Ahead of third-quarter earnings, Macquarie analyst Chad Beynon slightly lowered price targets across the sports betting sector—including top picks DraftKings (NASDAQ: DKNG) and Flutter Entertainment (NYSE: FLUT)—while maintaining an overall bullish outlook on the group.

DraftKings fraud, Connecticut fraud case, online betting scheme, identity theft charges, chargeback fraud — Macquarie lowered price targets on sports betting stocks, including DraftKings. (Image: Getty)

Third-quarter results from online sports betting operators and smaller regional rivals could deliver steady growth, as tailwinds from the July conclusion of the 2026 FIFA World Cup and early momentum in the NFL season help offset seasonal weakness in August.

“We expect 3Q OSB GGR +6% with strong July (strong World Cup) and improved September volume (DKNG noted double digits), offset by Aug (handle -1%),” observes Beynon. “Hold should be a wash, despite New York signaling a year-over-year decline. iGaming is expected to grow +18% (+12% SS; slightly below mid-teens communicated from FLUT).”

The analyst’s new price target on DraftKings is $34, down from $38, while his call on FanDuel owner Flutter is $128, down from $150. While those are obviously reductions, the new price objectives still imply significant potential upside for the slumping sports betting stocks.

Prediction Markets Loom Large

Prediction markets are expected to play a central role in third-quarter commentary, with institutional investors looking for details on how event-contract platforms are impacting traditional sportsbook market share.

“Prediction market to reach new highs in September at ~$19 billion taker volume (+1035% YoY), driven by the start of football (NFL + College) and building off the FIFA World Cup tailwind,” adds Beynon. “Specifically, prediction markets generated $4.3 billion of taker volume in the first week of September without any NFL games, and set a daily record on the opening Sunday of the NFL (Sept. 13) with $802 million.”

Both DraftKings and Flutter are making sizable investments in their prediction markets with it recently highlighting soaring volume on its DKeX exchange and waxing bullish on the long-term prediction market opportunity set.

However, some industry insiders note that yes/no exchanges are upping their customer acquisition enticements, potentially putting sportsbook operators in an uncomfortable economic position as they seek to defend their turf.

Regional & Las Vegas Outperformers

Broader gaming equities have faced headwinds this year driven by persistent economic pressures, softer Macau VIP volumes, and lower visitation on the Las Vegas Strip. Nevertheless, select regional and strip operators present favorable setups entering earnings season.

Beynon highlights Penn Entertainment (NASDAQ: PENN) and Red Rock Resorts (NASDAQ: RRR) as offering two of the best set ups among regional casino stocks ahead of third-quarter earnings season. Among Las Vegas Strip operators, the analyst singled out Wynn Resorts (NASDAQ: WYNN) as his preferred name, maintaining an “Outperform” rating with a $132 price target.

Todd Shriber is a senior news reporter covering gaming financials, casino business, stocks, and mergers and acquisitions for Casino.org.

Todd got his start in financial markets as a reporter with Bloomberg News. Later, he became a trader at a Southern California-based long/short hedge fund, where he specialized in the trading sector and international ETFs leading up to and during the financial crisis. He joined Casino.org in 2019.

Currently, Todd analyzes, researches, and writes on ETFs for various web-based publications and financial services firms. Shriber has been featured and quoted in Barron's, CNBC.com, and The Wall Street Journal. His work can also be found on Benzinga, ETF Daily News, ETF Trends, MarketWatch, Fox Business, and Nasdaq.com.

He currently resides in Las Vegas, where he enjoys golf and taking his black lab to the dog park. He's also an avid sports fan and likes to wager on college football and the NBA. You can also find him at the three-card poker and roulette table, even though he knows better.

Contact Todd at todd.shriber@casino.org.