We have come a long way from the days when legal gambling, in a state such as New York, was restricted to race tracks and the state’s own depressing Off Track Betting locations. Now, with so many casinos dotting the landscape and online gambling platforms becoming important sponsors for major sports leagues, you might think the market is saturated.
Online sports betting was legalized in New York in 2022, but it is still technically illegal in California, Texas and Florida, to name a few states. “We expect the forthcoming quarterly report should be notably important as the company progresses toward profitability in 4Q23,” Katz wrote in a note to clients on Tuesday. That is based on his expectation for a positive number for earnings before interest, taxes, depreciation and amortization . He expects the company to achieve profitability on a GAAP basis, with positive earnings per share, during the second half of 2024.
FanDuel is a well-known competitor to DraftKings and is owned by Flutter Entertainment PLC FLTR , which is based in Ireland. In February, Flutter said its board of directors had “reached a preliminary view” that it would be in the company’s interest to place a secondary listing of stock in the U.S. A decision on the offering is expected later in April and Katz believes the move “will provide potential upside for several companies within the sports betting industry, most notably DraftKings.