- DraftKings and Flutter are experiencing their lowest stock price in roughly three years despite showing growth in the US gambling sector.
NEW YORK – DraftKings and FanDuel’s parent company have seen their stock prices drop heavily over the last month and the last six months.
| Company | Symbol | Last Month | Last 6 Months |
|---|---|---|---|
| DraftKings | $DKNG | -33% | -53% |
| Flutter | $FLUT | -32% | -58% |
Stemming from regulatory changes and analyst revisions, there are many other reasons as to why these legal sports betting giants are noting a decline.
Aside from the emergence of prediction markets, the tax on gambling has increased over the last legislative cycle as well. In the UK, for example, they increased their online casino tax from 21% to 40%.
With this, multiple firms have adjusted their outlooks downward. In FanDuel’s case, Wells Fargo downgraded them from Overweight to Equal-Weight, Bernstein lowered its target from $245 to $225 and then again to $170, while UBS reduced its target from $320 to $300.
Still, earnings are projected to more than double in 2026.
$DKNG Outlook
As for DraftKings, their 2025 revenue exceeded $6 billion (up 27% YoY), with adjusted EBITDA over $600 million (more than triple 2024).
Despite the recent dip, DraftKings’ outlook emphasizes continued growth. The company projects 2026 adjusted EBITDA of $700-900 million, with Needham and Oppenheimer both maintaining “Buy” ratings.
At their lowest price point in about 3 years, it’s leaving many investors wondering if they should be increasing their share count in either or both of these gambling giants. At time of writing, DraftKings was trading at $21.34 and Flutter at $123.30
