Super Bowl LVII kicks off in Phoenix on Sunday and it is expected to be the most heavily wagered on edition of the big game ever. Consequently, some analysts are evaluating the potential effect on DraftKings (NASDAQ: DKNG) stock before the premier match-up.
DraftKings signage at a baseball stadium. The Super Bowl could impact the company’s share price. (Image: Forbes)
That is reasonable because DraftKings is one of a few pure play iGaming and sports wagering equities on the market today. In a Friday report to customers, Macquarie analyst Chad Beynon notes that depending on the outcome of the game, DraftKings stock and related stocks may get a lift.
Based on recent commercial volumes, we anticipate that $1.0-1.5bn will be staked on this year’s Super Bowl legally (~50%+ growth YoY) powered by a combination of legalization (~20% growth) and continuing mainstream adoption (~30% growth) due to better product offerings (e.g., SGP, props) and better user experiences (e.g., tech advancements),” wrote the analyst.
Beynon notes that while the Super Bowl may
