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Can DraftKings' Super App Unlock Growth Beyond Sportsbook States?
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Key Takeaways
DraftKings' Super App expands its reach beyond Sportsbook states through its nationwide Predictions offering.
Over 600,000 customers used Predictions through Aug. 7, 2026, with acquisition costs below Sportsbook levels.
National media partnerships, cross-selling opportunities and strong engagement likely support DKNG's growth.
DraftKings Inc. (DKNG - Free Report) is expanding its addressable customer base through its Super App strategy, which brings its offerings together under the DraftKings Sports app. Its Predictions offering allows customers to trade contracts tied to event outcomes, including sports, extending access into states where the company’s Sportsbook is unavailable. The strategy builds on DraftKings’ existing brand, technology and marketing infrastructure to pursue incremental growth.
Early adoption supports the strategy. As of Aug. 7, 2026, more than 600,000 customers had engaged with Predictions year to date. Acquisition costs were well below those for Sportsbook customers, while early retention rates and trading volume per customer were similar to those of Sportsbook customers. DraftKings identified its nationwide offering as an accelerator of customer acquisition, with Spanish-language availability also helping attract additional customer segments.
The broader footprint could improve the productivity of existing marketing spending. DraftKings’ partnerships with ESPN, NBC, Amazon and sports leagues provide national exposure that now reaches potential customers in additional Predictions markets. Its portfolio, including fantasy sports, lottery and horse racing, also creates opportunities to introduce existing customers to Predictions and strengthen engagement across products. During the second quarter of 2026, DraftKings highlighted cross-selling capabilities that had improved since its early Sportsbook launches.
DraftKings’ unified platform, national marketing presence and encouraging Predictions adoption could support growth beyond Sportsbook states. Translating that reach into sustained financial benefits will likely depend on building customer awareness and improving monetization over time. While regulatory uncertainty remains, early acquisition efficiency and customer engagement provide a basis for cautious optimism about the Super App’s contribution to longer-term growth.
DKNG’s Price Performance, Valuation & Estimates
DraftKings’ shares have declined 26% in the past three months compared with the industry’s 18.1% fall. In the same time frame, other industry players like Accel Entertainment, Inc. (ACEL - Free Report) , Boyd Gaming Corporation (BYD - Free Report) and PENN Entertainment, Inc. (PENN - Free Report) have lost 19.6%, 24.4% and 13.5%, respectively.
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 1.30, below the industry average of 1.64. Conversely, industry players, such as Accel Entertainment, PENN Entertainment and Boyd Gaming, have P/S ratios of 0.64, 0.27 and 1.20, respectively.
DKNG’s P/S Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for DraftKings’ 2026 earnings per share has declined in the past 60 days.
EPS Trend of DKNG Stock
Image Source: Zacks Investment Research
The company is likely to report solid earnings, with projections indicating a 36.4% surge in 2026. Conversely, industry players like Accel Entertainment and PENN Entertainment are likely to witness a rise of 15% and 117.7%, respectively, year over year in 2026 earnings. Meanwhile, Boyd Gaming’s 2026 earnings are expected to decline 3.2% year over year.
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Image: Shutterstock
Can DraftKings' Super App Unlock Growth Beyond Sportsbook States?
Key Takeaways
DraftKings Inc. (DKNG - Free Report) is expanding its addressable customer base through its Super App strategy, which brings its offerings together under the DraftKings Sports app. Its Predictions offering allows customers to trade contracts tied to event outcomes, including sports, extending access into states where the company’s Sportsbook is unavailable. The strategy builds on DraftKings’ existing brand, technology and marketing infrastructure to pursue incremental growth.
Early adoption supports the strategy. As of Aug. 7, 2026, more than 600,000 customers had engaged with Predictions year to date. Acquisition costs were well below those for Sportsbook customers, while early retention rates and trading volume per customer were similar to those of Sportsbook customers. DraftKings identified its nationwide offering as an accelerator of customer acquisition, with Spanish-language availability also helping attract additional customer segments.
The broader footprint could improve the productivity of existing marketing spending. DraftKings’ partnerships with ESPN, NBC, Amazon and sports leagues provide national exposure that now reaches potential customers in additional Predictions markets. Its portfolio, including fantasy sports, lottery and horse racing, also creates opportunities to introduce existing customers to Predictions and strengthen engagement across products. During the second quarter of 2026, DraftKings highlighted cross-selling capabilities that had improved since its early Sportsbook launches.
DraftKings’ unified platform, national marketing presence and encouraging Predictions adoption could support growth beyond Sportsbook states. Translating that reach into sustained financial benefits will likely depend on building customer awareness and improving monetization over time. While regulatory uncertainty remains, early acquisition efficiency and customer engagement provide a basis for cautious optimism about the Super App’s contribution to longer-term growth.
DKNG’s Price Performance, Valuation & Estimates
DraftKings’ shares have declined 26% in the past three months compared with the industry’s 18.1% fall. In the same time frame, other industry players like Accel Entertainment, Inc. (ACEL - Free Report) , Boyd Gaming Corporation (BYD - Free Report) and PENN Entertainment, Inc. (PENN - Free Report) have lost 19.6%, 24.4% and 13.5%, respectively.
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 1.30, below the industry average of 1.64. Conversely, industry players, such as Accel Entertainment, PENN Entertainment and Boyd Gaming, have P/S ratios of 0.64, 0.27 and 1.20, respectively.
DKNG’s P/S Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for DraftKings’ 2026 earnings per share has declined in the past 60 days.
EPS Trend of DKNG Stock
Image Source: Zacks Investment Research
The company is likely to report solid earnings, with projections indicating a 36.4% surge in 2026. Conversely, industry players like Accel Entertainment and PENN Entertainment are likely to witness a rise of 15% and 117.7%, respectively, year over year in 2026 earnings. Meanwhile, Boyd Gaming’s 2026 earnings are expected to decline 3.2% year over year.
DKNG stock currently has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.