DraftKings: A Top Growth Stock to Buy with $1,000 Right Now

DraftKings has seen significant growth in the past few years, with revenue increasing from $615 million in 2020 to $4.77 billion in 2024. The company has recently shifted to better profitability, reporting net income of $157.9 million in Q2 and $124.07 million in H1. DraftKings is expecting FY25 revenue of $6.2 billion to $6.4 billion, representing a 30% YoY increase. The sports betting market is expected to grow greatly in the coming years, providing growth potential for the gaming stock.

DraftKings has made significant strides in the sports betting sector, securing an untethered sports betting license in Missouri. The Missouri Gaming Commission awarded DraftKings one of the two untethered licenses available in the state, following a competitive bidding process that evaluated key criteria such as online betting expertise, operational history, and responsible gaming strategies [1].

The untethered license allows DraftKings to offer mobile sports betting throughout Missouri without partnering with an in-state casino or professional sports franchise. This financial advantage enables DraftKings to retain 100% of its revenue, minus state taxes, compared to tethered sportsbooks that must share revenue with their partners [1].

DraftKings' recent financial performance underscores its growing dominance in the sports betting market. The company's revenue has surged from $615 million in 2020 to $4.77 billion in 2024, with net income reaching $157.9 million in Q2 and $124.07 million in H1 of 2025. DraftKings expects FY25 revenue to range between $6.2 billion and $6.4 billion, representing a 30% year-over-year increase [2].

The global sports betting market is poised for substantial growth, driven by technological advancements and the increasing legalization of sports betting. The market is projected to reach $235.19 billion by 2033, with a compound annual growth rate (CAGR) of 10.12% from 2025 to 2033. Factors contributing to this growth include the popularity of competitive gaming, e-sports, and advancements in technology, such as AI and blockchain [2].

DraftKings' acquisition of the Missouri license positions the company well to capitalize on this expanding market. By offering a robust and unpartnered sports betting platform, DraftKings can enhance its market share and attract a broader customer base. As the sports betting industry continues to evolve and grow, DraftKings' strategic moves and financial performance indicate a promising future for the gaming stock.

References:
[1] https://www.nationalfootballpost.com/sports-betting-legalization/draftkings-circa-awarded-missouri-sports-betting-licenses/
[2] https://www.globenewswire.com/news-release/2025/08/28/3140920/28124/en/Sports-Betting-Market-Forecast-and-Company-Analysis-Report-2025-2033-Featuring-888-Bet365-Bet-at-Home-Betfred-Betsson-DraftKings-Entain-Flutter-International-Game-Technology-Kindre.html