DraftKings vs. Flutter: Which Sports-Betting Stock Has More Upside?

The rapid expansion of U.S. online sports betting has intensified the rivalry among leading digital gaming platforms, especially as operators race to strengthen product quality, deepen customer engagement and capture a larger share of a growing, increasingly competitive market. Two of the sector’s most influential players, DraftKings Inc. DKNG and Flutter Entertainment plc FLUT, now find themselves at a pivotal moment as product innovation, user acquisition strategies and ecosystem expansion start shaping the next phase of growth in online wagering.Both companies are reinforcing their competitive edges through improved sportsbook experiences, broader iGaming ecosystems and new entry points designed to attract customers in untapped jurisdictions. Their recent strategic updates highlight how each is positioning for long-term value creation while navigating shifting consumer behavior, evolving product economics and fresh opportunities like prediction markets.Let us dive deep and closely compare the fundamentals of DraftKings and Flutter to determine which one may offer more upside now.The Case for DraftKings StockDraftKings is strengthening its position in online sports betting and iGaming, supported by continued product enhancement and rising engagement across key offerings. In the third quarter of 2025, the company delivered solid momentum as improved pricing, higher parlay mix and expanded iGaming content contributed to healthy revenue gains. Monthly payer engagement and overall handle benefited from upgrades that improved user experience and supported more consistent activity across major sports periods.The company also posted meaningful operating improvements in the third quarter of 2025. Adjusted gross margin expanded at a strong double-digit rate year over year, supported by a richer parlay mix and more efficient promotional spending. iGaming showed robust performance as well, with net revenues accelerating 25% year over year in the period. Early indicators into the fourth quarter have been similarly constructive, with total sportsbook handle growing 17% year over year in October and parlay handle mix increasing 800 basis points for the NFL season and 1,000 basis points for the NBA season to date.Near-term variability remains a factor, particularly when weekly sports outcomes move against the house, which can pressure hold rates and create quarter-to-quarter volatility. Competitive intensity also continues to shape promotional dynamics across certain jurisdictions and regulatory shifts can influence the pace of growth in individual states. These factors introduce periodic fluctuations even as the overall trend remains favorable.Going forward, DraftKings expects continued momentum as product innovation, deeper personalization and stronger cross-product engagement support long-term growth. The company sees a sizable opportunity to expand its offerings in new jurisdictions and continue improving unit economics in existing markets.The Case for Flutter StockFlutter is building steady momentum in the United States as FanDuel benefits from a stronger product engine, higher parlay adoption and consistent gains in iGaming. In the third quarter of 2025, the company delivered a solid performance, supported by more than 14 million average monthly players across its global platforms and revenues up 17% year over year. Adjusted EBITDA also increased 6% year over year, reflecting a balanced contribution from both U.S. and international operations.The company continues to deepen customer engagement through enhancements in pricing, personalization and parlay construction. Same-game parlay mix improves across major sports and iGaming participation remains strong as new content and platform upgrades lift user activity. These ongoing improvements, combined with disciplined investment across channels, help U.S. operations maintain a strong competitive position while scaling efficiently. However, Sportsbook performance remained a notable pressure point in the period. Competitive activity across several key markets pushed customer acquisition costs higher, while weekly sports outcomes created meaningful volatility in hold rates and revenue trends. These factors contributed to a more uneven operating environment and limited the pace of growth in certain states. Although U.S. revenues increased 9% year over year, a 5% decline in Sportsbook revenues required substantial offset from iGaming, where growth surged 44% during the quarter. Looking ahead, Flutter sees a meaningful runway as FanDuel continues enhancing its product ecosystem and expanding reach. With continued innovation in pricing models, parlay capabilities and iGaming content, Flutter appears positioned to benefit from rising digital gaming adoption and long-term engagement trends across U.S. online wagering.Stock Performance & ValuationAs witnessed from the chart below, in the past six months, DraftKings’ share price performance stands above Flutter’s, but below the Zacks Gaming industry.Image Source: Zacks Investment ResearchConsidering valuation, DraftKings is currently trading at a premium compared with Flutter on a forward 12-month price-to-sales (P/S) ratio basis.Image Source: Zacks Investment ResearchComparing EPS Estimate Trends of DKNG & FLUTThe Zacks Consensus Estimate for DKNG’s 2025 and 2026 earnings estimates implies year-over-year improvements of 173.3% and 100.4%, respectively. The 2025 and 2026 EPS estimates have decreased over the past 30 days.DKNG’s EPS TrendImage Source: Zacks Investment ResearchThe Zacks Consensus Estimate for FLUT’s 2025 and 2026 earnings estimates implies year-over-year improvements of 8.1% and 39.1%, respectively. The 2025 and 2026 EPS estimates have decreased over the past 30 days.FLUT’s EPS TrendImage Source: Zacks Investment ResearchConclusionDraftKings and Flutter are both key players in the rapidly expanding U.S. online sports-betting market, yet they approach growth differently. DraftKings shows strong momentum through product upgrades, higher parlay engagement and expanding iGaming offerings, while Flutter leverages FanDuel’s ecosystem for steady growth and broad user adoption. Both companies face challenges from competitive intensity, regulatory shifts and outcome-driven volatility in Sportsbook operations, which can affect short-term results.Investors may prefer to monitor DraftKings, which carries a Zacks Rank #5 (Strong Sell), and Flutter, with a Zacks Rank #3 (Hold), focusing on trends in user engagement, product innovation and expansion into new markets as key factors shaping performance in the evolving sports-betting landscape.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Quantum Computing Stocks Set To SoarArtificial intelligence has already reshaped the investment landscape, and its convergence with quantum computing could lead to the most significant wealth-building opportunities of our time.Today, you have a chance to position your portfolio at the forefront of this technological revolution. In our urgent special report, Beyond AI: The Quantum Leap in Computing Power, you'll discover the little-known stocks we believe will win the quantum computing race and deliver massive gains to early investors.Access the Report Free Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report DraftKings Inc. (DKNG): Free Stock Analysis Report Flutter Entertainment PLC (FLUT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks