A massive U.S. Powerball lottery jackpot worth $1.7 billion is giving a boost to the stock of online betting platform DraftKings (DKNG).
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The current Powerball is the third-largest lottery prize in U.S. history. Enthusiasm for the gargantuan winnings is fueling business on Jackpocket, a lottery courier owned by DraftKings that is currently available in 16 American states.
DraftKings said 15 million Powerball tickets have been ordered using Jackpocket. Powerball ticket sales on the platform jumped 130% between Sept. 3 and 4, with sales rising 200% from the previous week as people clamor to buy tickets for the huge prize.
Powerball Fever
With nobody claiming a winning ticket for the latest draw on Sept. 3, the Powerball jackpot has grown from $1.4 billion to $1.7 billion, or $770 million in a lump sum payment. People can purchase lottery tickets, including for the Powerball, on the DraftKings app, and the Jackpocket courier fulfills the order, charging a fee in the process.
With Powerball fever gripping America, DKNG stock is marching higher. So far in September, DraftKings’ share price has risen 4%, although it is also getting a boost from the start of the NFL football season. However, the odds of winning the growing Powerball are slim. Currently, the odds of a person winning the $1.7 billion jackpot are just 1 in 292 million.
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 18.78% upside from current levels.
