{"id":325509,"date":"2024-07-17T18:21:54","date_gmt":"2024-07-17T23:21:54","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=325509"},"modified":"2024-07-18T10:32:45","modified_gmt":"2024-07-18T15:32:45","slug":"draftkings-genius-sports-top-pick-as-online-betting-booms","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/draftkings-genius-sports-top-pick-as-online-betting-booms\/","title":{"rendered":"DraftKings, Genius Sports Top Picks as Online Betting Booms"},"content":{"rendered":"

DraftKings (NASDAQ: DKNG) and Genius Sports (NYSE: GENI) are top gaming equity ideas at Macquarie, with the research firm forecasting significant second-quarter growth in iGaming and online sports betting (OSB) revenue.<\/p>\n

\"DraftKings\"
DraftKings stock highlighted at the Nasdaq market site in New York City. An analyst said that stock and Genius Sports are two top ideas in North American online gaming. (Image: Nasdaq)<\/figcaption><\/figure>\n

In a note to clients on Wednesday, analyst Chad Beynon forecast 34% year-over-year (YoY) online wagering growth in the June quarter for the North American market. That estimate is the aggregate of Macquarie\u2019s forecast calling for 39% growth in online sports betting in the April through June period, and a 27% year-over-year jump in iGaming GGR.<\/p>\n

With flattish online sports betting (OSB) market hold, we view +39% YoY volume, to lead to slight market beats. Moreover, we expect North America Online GGR growth of +34% YoY, comprising OSB +39% (+23% SS) and iGaming +27% YoY,\u201d wrote Beynon.<\/p><\/blockquote>\n

In the second quarter, DraftKings garnered 38%<\/a> of the domestic OSB handle, besting rival FanDuel at 36.5%, according to JMP Securities. Macquarie rates DraftKings \u201coutperform\u201d with a price target of $52, down from $54. That new price objective implies upside of 35.5% from Wednesday\u2019s close.<\/p>\n

Bullish Outlook on North American Online Betting<\/h2>\n

The gaming industry\u2019s second-quarter reporting season starts in earnest later this month with a slew of reports, including DraftKings and Genius, slated for early August. Some operators and technology providers could deliver insight regarding second-half and longer-ranging trends.<\/p>\n

\n

Regarding the outlook for the current quarter, Beynon said OSB is off to a strong start, helped by Spain\u2019s Carlos Alcaraz winning Wimbledon. The analyst added that in aggregate, Argentina besting Colombia for the Copa America championship was likely a negative for sportsbook operators, but it could be a positive for Rush Street Interactive<\/a> (NYSE: RSI) because that operator gets approximately 13% of its revenue from Colombia.<\/p>\n<\/div>\n

For the current quarter, Beynon estimates North American OSB handle growth of 20% and 30% year-over-year online betting GGR growth for the entirety of 2024. That growth rate is poised to dip to 11% next year before swelling back to 27% in 2026. The analyst said that the 2025 forecast assumes minimal new markets.<\/p>\n

However, there\u2019s room for surprise, particularly on the iGaming front. Next year could be active on the iGaming legislation front, particularly with recent momentum in Ohio<\/a> to potentially authorize online casinos.<\/p>\n

DraftKings, Genius Sports Offer GARP<\/h2>\n

At a time when many growth equities, particularly mega-cap names with artificial intelligence (AI) exposure, are richly valued, Beynon says DraftKings and Genius have the makings of growth at a reasonable price<\/a> (GARP) names.<\/p>\n

\n

Beynon noted both companies should post strong earnings before interest, taxes, depreciation, and amortization (EBITDA) growth through 2026 and the recent selloff in DraftKings is overdone.<\/p>\n<\/div>\n

\u201cWe think the sell-off is overdone as we expect as we expect <5% impact to EBITDA in ’25 (if at all), and see 2Q earnings as a potential catalyst if investors are reassured of this, despite a lower ’24 guide, in our view,\u201d concluded the Macquarie analyst.<\/p>\n","protected":false},"excerpt":{"rendered":"

DraftKings (NASDAQ: DKNG) and Genius Sports (NYSE: GENI) are top gaming equity ideas at Macquarie, with the research firm forecasting significant second-quarter growth in iGaming and online sports betting (OSB) revenue. In a note to clients on Wednesday, analyst Chad Beynon forecast 34% year-over-year (YoY) online wagering growth in the June quarter for the North […]<\/p>\n","protected":false},"author":46,"featured_media":258908,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10,19,1074],"tags":[81903,81871,80968],"acf":[],"yoast_head":"\nDraftKings, Genius Sports Top Pick as Online Betting Booms<\/title>\n<meta name=\"description\" content=\"DraftKings, Genius Sports Top Pick as Online Betting Booms.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.casino.org\/news\/draftkings-genius-sports-top-pick-as-online-betting-booms\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"DraftKings, Genius Sports Top Pick as Online Betting Booms\" \/>\n<meta property=\"og:description\" content=\"DraftKings, Genius Sports Top Pick as Online Betting Booms.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/draftkings-genius-sports-top-pick-as-online-betting-booms\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2024-07-17T23:21:54+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-07-18T15:32:45+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/02\/DKNG-scaled.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"2560\" \/>\n\t<meta property=\"og:image:height\" content=\"1707\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Todd Shriber\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@etfgodfather\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Todd Shriber\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/draftkings-genius-sports-top-pick-as-online-betting-booms\/\",\"url\":\"https:\/\/www.casino.org\/news\/draftkings-genius-sports-top-pick-as-online-betting-booms\/\",\"name\":\"DraftKings, Genius Sports Top Pick as Online Betting Booms\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/draftkings-genius-sports-top-pick-as-online-betting-booms\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/draftkings-genius-sports-top-pick-as-online-betting-booms\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/02\/DKNG-scaled.jpg\",\"datePublished\":\"2024-07-17T23:21:54+00:00\",\"dateModified\":\"2024-07-18T15:32:45+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"DraftKings, Genius Sports Top Pick as Online Betting Booms.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/draftkings-genius-sports-top-pick-as-online-betting-booms\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/draftkings-genius-sports-top-pick-as-online-betting-booms\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/draftkings-genius-sports-top-pick-as-online-betting-booms\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/02\/DKNG-scaled.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/02\/DKNG-scaled.jpg\",\"width\":2560,\"height\":1707,\"caption\":\"DraftKings stock highlighted at the Nasdaq market site in New York City. 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