DraftKings Stock Jumps After Rival Flutter Boosts US Sportsbook Market Growth Outlook: Retail Buzz Grows

Shares of DraftKings Inc. (DKNG) rose more than 3% early Wednesday after Flutter Entertainment (FLUT), the parent company of FanDuel, introduced optimistic medium-term guidance for the U.S. sportsbook market.

Flutter’s stock surged 8% after the company announced it expects annual revenue growth of about 14% through 2027, raising its total addressable market (TAM) projections.

It now sees the U.S. TAM reaching $63 billion by 2027, a 1.5x increase from its previous estimate.

Flutter, which went public in January, also revealed a $5 billion stock buyback plan and noted its global TAM could hit $368 billion in gross gaming revenue by 2030.

Both DraftKings and Flutter were trending on Stocktwits Wednesday morning, with message volumes for both companies surging.

A Needham analyst this week noted that the online sports betting (OSB) market remains dominated by FanDuel and DraftKings due to their scale and product leadership, reinforcing investor confidence.

DraftKings, up 20% year-to-date, has faced some recent legal challenges, including a lawsuit from Major League Baseball’s players' union over the unauthorized use of players' names and likenesses in advertisements.

Still, the company has continued to perform strongly, but trails Flutter’s 42% gain year-to-date.

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