Sports Betting is Heating up Into the Olympics

By beth mason July 17, 2021

Sports betting is seasonal, dependent on legalization, and growing in popularity.

Online sports betting is only fully legal in 10 states right now, with legislation pending in a handful of others.

Global online betting is expected to exceed $92 billion by 2023, with sports betting composing more than 40% of online betting activity.

LikeFolio data supports continued growth in the sports-betting industry.

Consumer mentions of placing bets on sporting events have increased +20% YoY.

But at LikeFolio, we’re not just listening to major consumer trends.

We’re tracking all of the major players in the game… especially those that are publicly traded.

And one has caught our eye…

DraftKings (DKNG) is Leading the Pack

DraftKings (DKNG), FanDuel (PDYPF), and Penn National Gaming (PENN) are the three major online betting platforms we follow.

And from a consumer mention volume perspective, DraftKings is winning.

The chart below showcases mentions of consumers talking about using a specific platform to place a bet related to a sporting event.

While FanDuel is exhibiting similar growth patterns, DraftKing’s Consumer Happiness rating is 4 points higher: 63% positive versus 59% positive.

And DKNG just capped off a solid quarter.

DraftKings’ Consumer Demand increased +62% YoY in 21Q2 (ended on June 30).

Momentum is Building… Playing it from Here

We’re expecting continued consumer engagement across the board as the Olympics kick off…

You can even bet on country medal counts if events aren’t your thing. Check out these futures:

We’ve been Bullish on DraftKings since November, when shares were trading pretty close to where they are now. Shares moved +37% to the upside through March before this recent correction.

Looking ahead, all the players in this space are being propelled by building consumer macro tailwinds: increased legalization, rising consumer interest in sports betting (+20% YoY), and improved platform integrations.

Long term, we still like PENN’s positioning.

It has the most diverse gambling exposure, with a mix of in-person and online betting, along with the highest Consumer Happiness rating of all players tracked (77% positive).

PENN also has a powerful marketing tool in its Barstool Sports media brand that consumers love.

But right now, DraftKings is executing better versus its peers. And we’re considering a double-down on our Bullish position. Stay tuned.

Andy Swan
Founder, LikeFolio