Americans are expected to bet a record $30 billion on this year’s NFL football season, according to the American Gaming Association.
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The heavy betting on football games this fall and winter is likely to provide a windfall for sports betting companies such as DraftKings (DKNG) and FanDuel, which is owned by Flutter Entertainment (FLUT). New entrants in the sports betting space such as BetMGM (MGM) and Caesars Entertainment (CZR) are also expected to get a boost from the heavy wagering on NFL contests.
The NFL’s regular season starts after Labor Day in September, and sportsbooks are gearing up for the biggest opportunity of the year to sign new customers and grow their revenues. The $30 billion that is forecast to be bet this NFL season represents an 8.5% increase from last year, says the American Gaming Association.
Gambling Goes Mainstream
The surge in betting on NFL games comes as gambling goes mainstream in America, with a growing number of states legalizing the practice and regulators cracking down on illegal bets. Consequently, sports betting is seeing an explosion of interest in Corporate America.
Online broker Robinhood Markets (HOOD) and other companies are entering the space this year in an effort to capitalize on the popularity of both NFL football and sports betting. This past February, a record $1.39 billion was bet on the Super Bowl, the NFL’s championship game.
Is DKNG Stock a Buy?
The stock of DraftKings has a consensus Strong Buy rating among 27 Wall Street analysts. That rating is based on 25 Buy and two Hold recommendations issued in the last three months. The average DKNG price target of $55.29 implies 16.06% upside from current levels.
