DraftKings Gains Regulatory Momentum and Sets Sights on Growth

Shares of DraftKings demonstrated resilience in a turbulent market, closing at $34.01 on Friday. This stability comes as the company pivots from a phase of financial consolidation to one of aggressive market expansion, backed by concrete regulatory wins and analyst confidence.

A key operational development was the activation of DraftKings' mobile sports betting platform in Missouri on December 6. This timely launch allows the company to capture additional revenue during the current football season, providing a potential boost to its fourth-quarter performance.

These expansion efforts are viewed against the backdrop of the company's latest financial results. For Q3 2025, DraftKings reported revenue of $1.14 billion, which fell approximately 5.8% short of analyst estimates of $1.21 billion. The subsequent share price recovery of about 26% over the past month suggests the market had already priced in this weakness and is now focusing on new growth catalysts.

Nationwide Approval for Predictions Market

In a significant strategic move, DraftKings received crucial regulatory approval from U.S. authorities the NFA and CFTC on December 5. The clearance allows its subsidiary, Gus III LLC, to operate as an "Introducing Broker" and launch its "DraftKings Predictions" product on a nationwide scale.

This authorization enables the company to enter the expanding event contracts market, positioning it to compete with platforms like Kalshi. The move effectively diversifies DraftKings' business model beyond traditional sports betting, substantially increasing its total addressable market.

Should investors sell immediately? Or is it worth buying DraftKings?

Analyst Highlights Substantial Upside Potential

The positive developments were further underscored by investment bank BTIG on the same day. Analyst Clark Lampen reaffirmed his "Buy" rating on the stock and raised his price target from $42.00 to $45.00. This new target implies an upside potential of roughly 32% from current trading levels.

The upward revision reflects growing confidence in the company's ability to monetize its user base and successfully expand into new business verticals.

Sustained Institutional Backing

Institutional support for DraftKings remains steady, with ownership levels holding between 37% and 38%. Notably, Lingotto Investment Management recently increased its stake in the company by 23.8%.

Investor attention is now firmly fixed on the company's execution of this strategic expansion plan as it moves into 2026.