DraftKings Inc. (DKNG) Stock Analysis

DraftKings’ principal competitive advantages are its brand strength, product innovation, technology integration, and scale in customer acquisition.

Brand and Scale: DraftKings is the most recognized online sportsbook brand in the U.S., with over 10 million unique customers as of Q2 2025. Its marketing partnerships with ESPN and NBCUniversal further reinforce brand visibility. In iGaming, DraftKings and FanDuel together control a majority of U.S. market share, with DraftKings’ table games share “orders of magnitude higher” than its slots share, indicating room for growth.

Product and Technology: DraftKings leads in live betting, with over 90% availability for MLB and NBA live markets and 1.5 million customers engaging in live bet tracking in 2025. The company’s in-house technology stack enables rapid feature deployment, such as micro-betting and same-game parlays, and supports a seamless user experience. This contrasts with BetMGM and Caesars, which rely more on third-party platforms and have lagged in product velocity.

Customer Acquisition and Retention: DraftKings’ data-driven marketing and cross-sell capabilities, including the integration of Jackpocket’s lottery app, have delivered record new customer acquisition at declining cost per acquisition. Its average revenue per monthly user ($151 in Q2 2025) is among the highest in the sector.

Risks: DraftKings faces margin pressure from rising state taxes and intensifying competition, particularly from FanDuel, which remains the market leader in overall handle and profitability. Nonetheless, DraftKings’ technology, brand, and product breadth provide a defensible position.