Barclays reiterated its Overweight rating and $37 price target on DraftKings Inc. (NASDAQ: DKNG), highlighting the company’s unveiling of a new “Super App” that integrates all product offerings into a single platform.
The Super App combines online sports betting (OSB), iGaming, daily fantasy sports (DFS), lottery, and the new Predictions product under one account and wallet structure. DraftKings aims to create a seamless user experience between traditional sports betting and sports prediction products, with availability depending on jurisdiction, while leveraging national branding and marketing.
The company plans to integrate its Predictions product into the existing OSB and iGaming platforms over the coming weeks without requiring customers to download a new app. Initially, balances will remain separate before transitioning to a single wallet structure in late second quarter.
Marketing efforts for the Predictions product have not yet commenced but are expected to increase during the first half of the year as product enhancements are rolled out.
Standalone apps, such as DKCasino, will remain available. Barclays noted that the strategy regarding emphasis between standalone apps and the Super App remains to be determined. The firm recalled prior industry examples where operators separated iGaming apps to avoid alienating casino-first customers. DraftKings indicated that 62% of iGaming activity currently occurs within its combined app, suggesting management believes this risk is manageable.
DraftKings’ strategy in the sports prediction market centers on vertical integration, leveraging proprietary pricing, trading capabilities, sports-focused customer insights, and national marketing to improve unit economics. The company plans to vertically integrate several prediction market components in 2026, including market making, clearinghouse, designated contract market (DCM), futures commission merchant (FCM), and introducing broker functions.
Regarding market making, DraftKings believes it can lead in request-for-quote and combination-bet innovation by utilizing its parlay and modeling capabilities.
