Prediction Markets Could Bring Tax ‘Loophole' For Sports Bettors
Until the IRS says otherwise, sports betting on Kalshi and Polymarket may have a tax advantage over traditional sportsbooks.
Fiscal Year: January - December
DraftKings Inc. (DKNG), listed on the NASDAQ, has a market capitalization of $. As of Jan 05, 2026, the stock is trading at $35.66 per share, offering investors a clear view of its current market value. DraftKings Inc. is a prominent player in the industry sector, attracting both institutional and retail investors due to its performance and potential.
With a P/E ratio of N/A , investors can assess the stock's valuation in comparison to its earnings. A P/E ratio is a crucial indicator for value investors, showing whether the stock is over or undervalued relative to its current earnings. DraftKings Inc. also offers a dividend yield of N/A , making it an attractive option for income-focused investors who seek regular dividends.
Our Discounted Cash Flow (DCF) analysis reveals that DraftKings Inc. (DKNG) may be undervalued compared to its intrinsic worth. However, to see the exact DCF fair value, please Login or Upgrade for access.
The proprietary SS Score for DraftKings Inc. is a unique metric that analyzes the company's financial health and growth potential. The score takes into account critical factors such as revenue growth, net income, free cash flow (FCF) compound annual growth rate (CAGR), the trend of shares outstanding, and the debt-to-FCF ratio. This helps investors to make a more informed decision, as an undervalued stock might still have poor financial fundamentals.
To view the detailed SS Score for DraftKings Inc., Login or Upgrade for access.
The Price to Free Cash Flow (P/FCF) ratio for DraftKings Inc. is 27.14, offering insights into how much investors are paying for the company's free cash flow. A lower P/FCF ratio typically suggests that the stock is undervalued, while a higher ratio may indicate overvaluation.
In summary, DraftKings Inc. (DKNG) has shown consistent financial performance, as illustrated by the financial charts above, which track its revenue growth, net income, free cash flow, and shares outstanding over the past several years. These metrics provide investors with key insights into the company's past and projected future performance. Investors should use the SS Score alongside the DCF Fair Value to make better-informed decisions about whether to buy or hold the stock.
*This analysis is for informational purposes only and does not constitute investment advice. Always read the company's 10-K filings and do your own research before making any investment decisions.
Whether DraftKings Inc. (DKNG) is a good stock to buy depends on various factors, including its financial health, market conditions, and your investment strategy. Our analysis indicates that the stock may be undervalued compared to its intrinsic value. However, it is important to assess the SS Score and review the company's fundamentals before making any investment decisions.
The fair value of DraftKings Inc. (DKNG) is determined through our Discounted Cash Flow (DCF) analysis. This value represents the intrinsic worth of the stock based on its expected future cash flows. To view the specific fair value, consider subscribing to our service for complete access.
The SS Score is a proprietary financial quality metric that assesses factors such as revenue growth, net income, free cash flow growth, and debt levels. It helps investors evaluate the overall financial health of DraftKings Inc.. To access the full SS Score, consider upgrading your subscription.
DraftKings Inc. is a significant player in the industry sector, with a market capitalization of $ and a competitive P/E ratio of N/A . Investors should compare these metrics with industry peers to gauge whether DraftKings Inc. is outperforming or underperforming within its sector.
Until the IRS says otherwise, sports betting on Kalshi and Polymarket may have a tax advantage over traditional sportsbooks.
Sportsbooks have been having a tough year — but the Paul-Joshua fight was a good night for the house.
DraftKings Inc. announced its formal entry into the prediction markets with DraftKings Predictions. The launch is a response to increasing prediction market competition. The launch expands DKNG's addr...
Jason Robbins, DraftKings CEO, joins 'The Exchange' to discuss DraftKings' entry into the prediction markets, the regulations behind it and much more.
A costly sportsbook screwup left DraftKings on the hook for nearly $1 million after Massachusetts regulators ordered the payouts tied to a botched MLB parlay scheme.
DraftKings entered prediction markets with the launch of DraftKings Predictions, a standalone app and web product. DraftKings Predictions is now available for eligible U.S. residents and will be added...
Prediction markets could trade a trillion dollars in volume annually by the end of this decade, according to Eilers & Krejcik. Sports is fueling the growth and is forecasted to make up 44% of volume a...
Macro headwinds that drove an 11% decline in Vegas visitation for conventions and tourism in the last nine months are expected to subside, proven by record advance bookings. Inflation, tariffs, and la...
Kalshi and Polymarket may not be a threat for much longer, as the gambling company gears up to launch its own prediction market.
The launch reaffirms the company's dedication to a customer-first commitment while expanding its reach to a broader audience The launch reaffirms the company's dedication to a customer-first commitmen...
The rise of prediction markets has sent DraftKings Inc (NASDAQ: DKNG) and Flutter Entertainment PLC (NYSE: FLUT) shares lower. While some investors and analysts see prediction markets as a major compe...
BOSTON, Nov. 24, 2025 (GLOBE NEWSWIRE) -- DraftKings Inc. (Nasdaq: DKNG) today announced plans to launch its top-rated mobile sportsbook in Missouri on December 1, 2025. Earlier this year, the Missour...
CHARLOTTE, N.C.--(BUSINESS WIRE)--The American Gambling Awards is pleased to announce that Jason Robins, Chief Executive Officer and Co-Founder of DraftKings Inc. (Nasdaq: DKNG) (“DraftKings”), has be...
FanDuel and DraftKings on Tuesday said they are quitting the American Gaming Association. Prediction platforms like Kalshi and Polymarket, which allow customers to trade on events across pop culture, ...
DraftKings' meltdown continues as it retests the 2.5Y bottom of $29s, thanks to the intensifying competition from the Prediction Markets and the customer-friendly sport outcomes in FQ3'25. This is wor...
DraftKings (DKNG) is downgraded to a sell rating after a disappointing Q3 earnings report and a 20% year-to-date stock decline. DKNG's valuation remains stretched at 31x FY25 adjusted EBITDA, despite ...
Sports betting giant DraftKings Inc (NASDAQ:DKNG) reported mixed results for the third quarter on Thursday. An analyst breaks down what the results mean and what's next for the company.
Prediction markets can be used as a “powerful lever” to pressure states to legalize online sports betting, DraftKings CEO Jason Robins said Friday.
Market Catalysts anchor Julie Hyman breaks down the latest financial news for November 7, 2025. Betsey Stevenson, University of Michigan Professor of Public Policy, discusses conflicting jobs data ami...
DraftKings CEO Jason Robins discusses Walt Disney Co. signing a new multiyear deal to make the company ESPN's new sports-betting partner. Speaking with Ed Ludlow and Caroline Hyde on "Bloomberg Tech,"...
The future may be impossible to predict, but it's becoming increasingly possible to bet on. As the race to win the multibillion-dollar sports gaming market in the United States enters its next phase, ...
DraftKings Inc. ( DKNG) Q3 2025 Earnings Call November 7, 2025 8:30 AM EST Company Participants Michael DeLalio Jason Robins - Co-Founder, Chairman & CEO Alan Ellingson - Chief Financial Officer Conf...
The DraftKings stock price woes accelerated after the company published its quarterly results and issued a weak forward guidance. DKNG crashed by over 7% to $25 on the extended hours, much lower than ...
U.S. stock futures were lower this morning, with the Nasdaq futures falling around 100 points on Friday.
DraftKings Chairman, Co-Founder and CEO Jason Robins joins 'Mad Money' host Jim Cramer to talk quarterly results, the growth of prediction markets, trends in the sports gambling space, and more.
Below estimates were sourced from SimplyWallSt and are intended for educational purposes only as a baseline for the analysis.
| Year | FCF Estimate | % | # Analysts |
|---|---|---|---|
| 2025 | 659.82M | 61.88% | Est @61.9% |
| 2026 | 912.06M | 38.23% | Analyst x10 |
| 2027 | 1,352.42M | 48.28% | Analyst x8 |
| 2028 | 1,697.01M | 25.48% | Analyst x2 |
| 2029 | 2,164.46M | 27.55% | Analyst x2 |
| 2030 | 2,482.71M | 14.70% | Analyst x2 |
| 2031 | 2,665.19M | 7.35% | Est @7.4% |
| 2032 | 2,821.91M | 5.88% | Est @5.9% |
| 2033 | 2,958.84M | 4.85% | Est @4.9% |
| 2034 | 3,072.76M | 3.85% | Est @3.9% |
Below are the FCF estimates with the discount factor and the calculated present value with the terminal value that led the results above.
| Year | FCF | Discount Factor | PV of Future FCF |
|---|---|---|---|
| 2023A | -22.65M | 1.00 | -22.65M |
| 2024A | 407.59M | 1.00 | 407.59M |
| 2025E | 659.82M | 1.10 | 597.93M |
| 2026E | 912.06M | 1.22 | 748.97M |
| 2027E | 1.35B | 1.34 | 1.01B |
| 2028E | 1.70B | 1.48 | 1.14B |
| 2029E | 2.16B | 1.64 | 1.32B |
| 2030E | 2.48B | 1.81 | 1.37B |
| 2031E | 2.67B | 1.99 | 1.34B |
| 2032E | 2.82B | 2.20 | 1.28B |
| 2033E | 2.96B | 2.43 | 1.22B |
| 2034E | 3.07B | 2.68 | 1.15B |
| Terminal | 40.12B | 2.68 | 14.98B |
The information given by Studying Stocks and provided in the web and/or mobile applications (Platforms) is only factual information and should not be considered financial advice.
Any information contained in this website has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice.
When creating an account, you acknowledge that you are:
We retain the right to cancel your account for any reason, or refuse your account creation request.
The information on our Platforms is not comprehensive and is intended to provide a summary of the subject matter covered. While we use all reasonable attempts to ensure the accuracy and completeness of the data and information on our Platforms, to the extent permitted by law, we make no warranty regarding the information on these Platforms. You should monitor any changes to the information contained on these Platforms.
Furthermore we make no commitments in regards to the minimum amount of uptime that our platforms will maintain, although we will make ever reasonable attempt to ensure that the platforms are operational. Therefore, any reference of "latest", "current" and related words about the financial data presented here may not be up to date with the financial markets or represent reality of the information.
We are not liable to you or anyone else if interference with or damage to your computer systems occurs in connection with the use of these Platforms or a linked website. You must take your own precautions to ensure that whatever you select for your use from our Platforms is free of viruses or anything else (such as worms or Trojan horses) that may interfere with or damage the operations of your computer systems.
We may, from time to time and without notice, change or add to the Platforms (including the Terms) or the information, products or services described in it. However, we do not undertake to keep the Platforms updated. We are not liable to you or anyone else if errors occur in the information or the Platforms is not up-to-date.
Our Platforms may contain links to websites operated by third parties. Those links are provided for convenience and may not remain current or be maintained. Unless expressly stated otherwise, we do not endorse and are not responsible for the content on those linked websites and have no control over or rights in those linked websites.
These Platforms are for your personal, non-commercial use only. You may not modify, copy, distribute, transmit, display, perform, reproduce, publish, license, commercially exploit, create derivative works from, transfer, or sell any Content, software, products or services contained within these Platforms. You may not use these Platforms, or any of its Content, to further any commercial purpose, including any advertising or advertising revenue generation activity on your own website.
You must not do any act that we would deem to be inappropriate, is unlawful or is prohibited by any laws applicable to these Platforms, including but not limited to:
If we allow you to post any information to our Platforms, we have the right to take down this information at our sole discretion and without notice.
To the maximum extent permitted by law, we make no warranties or representations about these Platforms or the Content, including but not limited to warranties or representations that they will be complete, accurate or up-to-date, that access will be uninterrupted or error-free or free from viruses, or that these Platforms will be secure.
We reserve the right to restrict, suspend or terminate without notice your access to these Platforms, any Content, or any feature of these Platforms at any time without notice and we will not be responsible for any loss, cost, damage or liability that may arise as a result.
To the maximum extent permitted by law, in no event shall we be liable for any direct and indirect loss, damage or expense – irrespective of the manner in which it occurs – which may be suffered due to your use of our Platforms and/or the information or materials contained on it, or as a result of the inaccessibility of these Platforms and/or the fact that certain information or materials contained on it are incorrect, incomplete or not up-to-date.
This website utilises cookies. If you do not have cookies enabled in your web browser some functions of the site may not work as intended.