According to Bank of America, sports betting company Draft King has earned a strong profit from this year’s Super Bowl Bet Activity and the Philadelphia Eagles victory. Compared to last year’s Super Bowl, both Fan Duell and New Jersey’s Game Enforcement Division reported a 19% increase in bets, while GeoComply reported a 14% increase in activity. Analyst Sean Kelly said Draftkings, which has only risen about 0.5% in the past 12 months, is poised to make a profit as a result. He expects the company to bring in another $20-$25 million in EBITDA annually. “The ability to grow double digits during the biggest event of the year is impressive and I think it will help ease concerns about slowing the handle,” Kelly wrote in a note on Wednesday. “In addition to the strong growth of the steering wheel, the book considers the Eagles’ victory and key players, including Saquon Berkley and Travis Kelce, are out of the end zone,” the analyst added. This is because the company has already seen accelerated the growth of its handle at the beginning of 2025. Banks noted that Draftkings handles, which represent the amounts wagered at a particular event, rose by 19% in January. That said, Kelly doesn’t think Draft King will give guidance for 2025 to reflect a strong start to the year. “DKNG believes it could face more than $100 million annual headwinds from higher taxes in Maryland and Ohio, and could face launch costs in Missouri that are not currently in the 2025 guide. “We’ll do that,” the analyst said. “Given regulatory uncertainty, we expect DKNG to repeat its 2025 guidance and consider tax changes in certain states, but to quantify or bridge the potential impacts. It could help,” Kelly added. Most Wall Street analysts are bullish on the name. According to LSEG data, 37 out of 37 analysts have strong purchase or purchase ratings, while the remaining five have pending ratings. DraftKings has a consensus price target of nearly $52 over the next 12 months. This reflects an increase of more than 19% since the end of Tuesday.
