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Macquarie recommends DraftKings (DKNG) and Flutter Entertainment (FLUT) as the best sports betting stocks to own due to favorable NFL outcomes, better profit margins, and continued growth in online sports betting and iGaming during Q4. Higher tax rates in New Jersey, Illinois, and Louisiana are already reflected in their stock prices. The total legal sports betting handle in the U.S. is expected to reach $164 billion in 2025, with football driving the majority of bets. Analysts expect Caesars Sportsbook (CZR) to have the most room to run, with a 39% upside potential.

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