DraftKings seen as top World Cup betting beneficiary in U.S. market

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DraftKings tops World Cup betting

Highlights

Bernstein identifies DraftKings as the top U.S. World Cup betting beneficiary due to its NBCUniversal partnership and Telemundo Spanish-language integration.
DraftKings’ prediction markets business reached $1.3 billion in May annualized volume, up 24% from April, as World Cup support boosts segment momentum.
Bank of America reports three in five legal-state bettors plan to wager on the World Cup, potentially spurring a significant influx of first-time online gambling customers.

Analysts point to marketing and product advantages

As reported by CNBC, Bernstein said in a report issued Thursday that DraftKings appears to be the clearest gambling beneficiary from the World Cup, which is expected to become the biggest betting event ever. Analyst Ian Moore said the company’s advantage comes from its marketing distribution, citing a multi-year NBCUniversal partnership and Telemundo’s exclusive Spanish-language rights as a strong channel into highly engaged soccer bettors in the U.S.

Moore also said the tournament is set to support DraftKings’ prediction markets business. Earlier this week, the Boston-based company said that business reached $1.3 billion in annualized consumer volume in May, up 24% from April, a sign that it is gaining ground in a segment that has challenged its sportsbook model and weighed on the stock.

DraftKings said the World Cup could become a meaningful driver of both customer acquisition and engagement because its unified platform lets users access either sportsbook or sports predictions depending on location, while also offering a Spanish-language feature.

World Cup betting surge could shape broader sector competition

Bank of America said in a report using Paysafe data that three in five bettors in states where sports gambling is legal plan to wager on the tournament. The bank also said nearly one in five is expected to place a first-ever bet during the competition, pointing to a potentially significant influx of new customers for online gambling operators.

Oppenheimer analyst Jed Kelly, who rates DraftKings a buy, said on Thursday that the company’s World Cup push into prediction markets could act as a trial run before a heavier wave of activity arrives with the NFL season in the fall. He said DraftKings can use its product capabilities, customer acquisition economics, vertical integration and in-house market-making to build a leading prediction markets offering for sports-focused users.

Our earlier coverage of World Cup travel demand highlighted that the expected tourism windfall for U.S. host cities had not materialized ahead of kickoff. We noted hotels were cutting room rates and airlines were seeing softer inbound demand from Europe, as high ticket costs, visa barriers and complex multi-city logistics discouraged fans, even as short-term rentals showed pockets of strength.

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