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DKNG iGaming and Lottery Growth Quietly Powering the Story
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Key Takeaways
DraftKings' iGaming revenue rose 20% in 2025, driven by product expansion and broader user appeal.
DKNG's lottery growth gained from jackpot cycles and new offerings like Scratcher Games and Keno.
DKNG leverages tech and customer base to scale iGaming and lottery with less promotional intensity.
While much of the spotlight on DraftKings Inc. (DKNG - Free Report) remains fixed on Sportsbook and emerging prediction markets, its iGaming and lottery segments are steadily becoming meaningful growth drivers. These verticals may not grab headlines, but they are contributing to a more balanced and resilient business model.
In 2025, DraftKings delivered a strong performance across all segments, with iGaming revenue rising 20% year over year. This growth was fueled by product expansion and the ability to attract a broader demographic beyond core sports bettors. Unlike Sportsbook, which can be volatile due to event outcomes, iGaming offers more stable and predictable revenue streams, enhancing overall earnings visibility.
The lottery segment is also gaining traction. Growth was supported by favorable jackpot cycles and the rollout of new offerings like Scratcher Games and Keno across additional states. These products help diversify user engagement and provide cross-sell opportunities within the broader platform ecosystem.
Both iGaming and lottery benefit from DraftKings’ existing technology, marketing engine and customer base. This creates operational leverage, allowing the company to scale these segments efficiently without the same level of promotional intensity required in Sportsbook.
As DraftKings continues investing in new areas like prediction markets, these quieter verticals provide a steady financial backbone. Over time, their consistent growth and margin profile could play a larger role in driving profitability and smoothing out the inherent volatility of the broader online betting industry.
Competitors Highlight iGaming and Lottery Opportunity
Two key rivals to DraftKings Inc. in the iGaming and lottery space are Flutter Entertainment plc (FLUT - Free Report) and MGM Resorts International (MGM - Free Report) .
FanDuel, backed by Flutter, holds a leading position in U.S. online gaming, with iGaming contributing a meaningful share of its revenue mix. Its strong product ecosystem and cross-sell capabilities between sportsbook and casino offerings mirror DraftKings’ strategy, reinforcing the importance of diversified gaming streams.
BetMGM, a joint venture between MGM and Entain, has built a strong iGaming footprint through premium casino content and brand leverage. The platform continues to scale in key legalized states, directly competing with DraftKings in both user acquisition and retention.
Together, these peers highlight a clear industry shift: iGaming and lottery are evolving into core profit engines, where scale, technology and customer engagement determine long-term winners.
DKNG’s Price Performance, Valuation & Estimates
DraftKings’ shares have declined 36.6% in the past three months compared with the industry’s 18.9% fall.
DKNG Three-Month Price Performance
Image Source: Zacks Investment Research
DKNG stock is currently trading at a discount. It is currently trading at a forward 12-month price-to-sales (P/S) multiple of 1.57, below the industry average of 2.04.
DKNG’s P/S Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research
EPS Trend of DKNG Stock
The Zacks Consensus Estimate for DraftKings’ 2026 earnings per share has declined in the past 60 days. The company is likely to report solid earnings, with projections indicating a 74.2% surge for 2026.
View the Zacks #1 Rank List
Image: Shutterstock
DKNG iGaming and Lottery Growth Quietly Powering the Story
Key Takeaways
While much of the spotlight on DraftKings Inc. (DKNG - Free Report) remains fixed on Sportsbook and emerging prediction markets, its iGaming and lottery segments are steadily becoming meaningful growth drivers. These verticals may not grab headlines, but they are contributing to a more balanced and resilient business model.
In 2025, DraftKings delivered a strong performance across all segments, with iGaming revenue rising 20% year over year. This growth was fueled by product expansion and the ability to attract a broader demographic beyond core sports bettors. Unlike Sportsbook, which can be volatile due to event outcomes, iGaming offers more stable and predictable revenue streams, enhancing overall earnings visibility.
The lottery segment is also gaining traction. Growth was supported by favorable jackpot cycles and the rollout of new offerings like Scratcher Games and Keno across additional states. These products help diversify user engagement and provide cross-sell opportunities within the broader platform ecosystem.
Both iGaming and lottery benefit from DraftKings’ existing technology, marketing engine and customer base. This creates operational leverage, allowing the company to scale these segments efficiently without the same level of promotional intensity required in Sportsbook.
As DraftKings continues investing in new areas like prediction markets, these quieter verticals provide a steady financial backbone. Over time, their consistent growth and margin profile could play a larger role in driving profitability and smoothing out the inherent volatility of the broader online betting industry.
Competitors Highlight iGaming and Lottery Opportunity
Two key rivals to DraftKings Inc. in the iGaming and lottery space are Flutter Entertainment plc (FLUT - Free Report) and MGM Resorts International (MGM - Free Report) .
FanDuel, backed by Flutter, holds a leading position in U.S. online gaming, with iGaming contributing a meaningful share of its revenue mix. Its strong product ecosystem and cross-sell capabilities between sportsbook and casino offerings mirror DraftKings’ strategy, reinforcing the importance of diversified gaming streams.
BetMGM, a joint venture between MGM and Entain, has built a strong iGaming footprint through premium casino content and brand leverage. The platform continues to scale in key legalized states, directly competing with DraftKings in both user acquisition and retention.
Together, these peers highlight a clear industry shift: iGaming and lottery are evolving into core profit engines, where scale, technology and customer engagement determine long-term winners.
DKNG’s Price Performance, Valuation & Estimates
DraftKings’ shares have declined 36.6% in the past three months compared with the industry’s 18.9% fall.
DKNG Three-Month Price Performance
Image Source: Zacks Investment Research
DKNG stock is currently trading at a discount. It is currently trading at a forward 12-month price-to-sales (P/S) multiple of 1.57, below the industry average of 2.04.
DKNG’s P/S Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research
EPS Trend of DKNG Stock
The Zacks Consensus Estimate for DraftKings’ 2026 earnings per share has declined in the past 60 days. The company is likely to report solid earnings, with projections indicating a 74.2% surge for 2026.
Image Source: Zacks Investment Research
DKNG currently has a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.