Surge in Betting for 2026 NCAA Basketball Tournament
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 17 2026
0mins
Should l Buy DKNG?
Source: seekingalpha
- Betting Amount Increase: The American Gaming Association estimates that legal wagering on the 2026 NCAA men's and women's basketball tournaments will reach $3.3 billion, up from $3.1 billion in 2025, reflecting a growing trend as more states launch online betting and consumer engagement deepens.
- Market Share Boost: The inclusion of Missouri, the 19th largest state by population, is expected to significantly enhance market share for leaders like FanDuel, DraftKings, and Bet365, further solidifying their positions in the rapidly expanding online betting market.
- Rise of Prediction Markets: The popularity of prediction market platforms such as Polymarket and Kalshi, especially in states where sports betting remains illegal, will be a major factor, with about 40% of digital sports betting ads now coming from these regulated platforms, indicating a decline in traditional sportsbook advertising spend and volume.
- Cautious Promotional Strategies: Analysts have noted that sportsbooks are adopting a more cautious approach to promotional activities amid the legal and regulatory challenges facing major U.S. prediction markets, adapting to the evolving market landscape.
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Analyst Views on DKNG
Wall Street analysts forecast DKNG stock price to rise
29 Analyst Rating
23 Buy
6 Hold
0 Sell
Strong Buy
Current: 22.990
Low
30.00
Averages
42.69
High
53.00
Current: 22.990
Low
30.00
Averages
42.69
High
53.00
About DKNG
DraftKings Inc. is a digital sports entertainment and gaming company. It provides users with online and retail sports betting (together, Sportsbook), online casino (iGaming) and daily fantasy sports product offerings, as well as digital lottery courier, media, and other product offerings. Sportsbook is live with mobile and/or retail sports betting operations pursuant to regulations in 28 states, Washington, D.C., and in Ontario, Canada. It operates iGaming pursuant to regulations in five states and in Ontario, Canada under its DraftKings brand and pursuant to regulations in four states under its Golden Nugget Online Gaming brand. It owns Jackpocket, a digital lottery courier app in the United States. It is both an official daily fantasy and sports betting partner of the NFL, NHL, PGA TOUR, WNBA and UFC, as well as an official daily fantasy partner of NASCAR, an official sports betting partner of the NBA. It also owns and operates DraftKings Network, a multi-platform content ecosystem.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Signs of Earnings Recovery: Morgan Stanley's chief U.S. equity strategist, Michael Wilson, noted that despite geopolitical risks, the earnings recovery remains intact, primarily driven by positive operating leverage, suggesting growing market confidence in economic recovery.
- Potential Winners: Analysts at Morgan Stanley believe companies like DraftKings and Datadog are poised to exceed expectations on key performance indicators, with DraftKings expected to excel in adjusted EBITDA and Datadog likely to surprise on revenue, enhancing their competitive positions in the market.
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- North American Market Positioning: Alberta will become the 34th jurisdiction in North America where DraftKings offers online sports betting and the seventh with online casino services, highlighting the company's strategic positioning in the rapidly growing online gambling market.
- Population Advantage: With a population of over 5 million, Alberta represents a larger market than Los Angeles and is close in size to Colorado, providing DraftKings with a significant customer base that is expected to drive user growth and revenue enhancement.
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- Industry Impact Analysis: NTRA CEO Tom Rooney emphasized that wagering on horse racing is governed by the Interstate Horseracing Act of 1978, not federal commodities laws, and any contracts bypassing this act would conflict with public interest, potentially leading to industry chaos.
- Revenue Diversion Risk: Allowing prediction markets like Polymarket and Kalshi to take Derby-related bets could significantly divert betting revenue away from the traditional pari-mutuel system, impacting racetracks, horsemen, and state tax streams, which rely on this income.
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- Earnings Season Performance: By April 17, 10% of S&P 500 companies had reported Q1 earnings, with 88% exceeding EPS expectations and 84% surpassing revenue forecasts, indicating robust financial health that is likely to attract more investor interest.
- Signs of Earnings Recovery: Morgan Stanley's chief U.S. equity strategist, Michael Wilson, noted that despite geopolitical risks, the earnings recovery remains intact, primarily driven by positive operating leverage, suggesting growing market confidence in economic recovery.
- Potential Winners: Analysts at Morgan Stanley believe companies like DraftKings and Datadog are poised to exceed expectations on key performance indicators, with DraftKings expected to excel in adjusted EBITDA and Datadog likely to surprise on revenue, enhancing their competitive positions in the market.
- Market Outlook: As more companies prepare to report earnings, Morgan Stanley anticipates additional positive financial data, particularly for those companies that exceed expectations on key performance indicators, which will likely yield disproportionate benefits in the market.
See More
DraftKings Plans Online Betting Launch in Alberta, Canada
- Market Expansion Plan: DraftKings (DKNG) intends to launch its online sports betting and casino products in Alberta on the anticipated universal launch date of July 13, contingent on obtaining necessary licensing and regulatory approvals, thereby increasing its operational provinces in Canada to two and expanding its market reach.
- North American Market Positioning: Alberta will become the 34th jurisdiction in North America where DraftKings offers online sports betting and the seventh with online casino services, highlighting the company's strategic positioning in the rapidly growing online gambling market.
- Population Advantage: With a population of over 5 million, Alberta represents a larger market than Los Angeles and is close in size to Colorado, providing DraftKings with a significant customer base that is expected to drive user growth and revenue enhancement.
- World Cup Opportunity: DraftKings VP Greg Karamitis noted that the anticipated launch aligns with the World Cup hosted in North America, presenting an exciting opportunity for sports fans in Alberta to engage with their platform, thereby enhancing market appeal.
See More
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- PepsiCo's Quarter Performance: PepsiCo achieved its first volume growth in North American food business in two years, with CEO Ramon Laguarta addressing the industry's threat from GLP-1 weight-loss drugs, leading to a 1% rise in shares, demonstrating the company's resilience and adaptability in a competitive consumer goods market.
- TSMC Profit Surge: TSMC reported a 58% year-over-year profit increase, despite facing challenges with shortages of industrial gases; management noted a 'little bit softer' memory pricing, indicating ongoing demand and competitive pressures in advanced chip manufacturing that could impact future profitability.
- J.B. Hunt Transport Services: J.B. Hunt indicated the start of a new cycle with positive demand signals, reporting a first-quarter earnings beat and a 1% premarket share increase, reflecting potential growth opportunities in the transportation sector.
- Analyst Rating Changes: JPMorgan downgraded Corning to hold and cut its price target from $175 to $115, citing the need for greater earnings visibility to support stock upside, indicating a cautious market outlook on the company's future performance.
See More
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- Legal Compliance Warning: The National Thoroughbred Racing Association has publicly warned that prediction markets should not offer bets on the Kentucky Derby or any other horse races in the U.S., arguing that such activities violate federal law and undermine the regulated pari-mutuel system, highlighting the importance of legal compliance.
- Industry Impact Analysis: NTRA CEO Tom Rooney emphasized that wagering on horse racing is governed by the Interstate Horseracing Act of 1978, not federal commodities laws, and any contracts bypassing this act would conflict with public interest, potentially leading to industry chaos.
- Revenue Diversion Risk: Allowing prediction markets like Polymarket and Kalshi to take Derby-related bets could significantly divert betting revenue away from the traditional pari-mutuel system, impacting racetracks, horsemen, and state tax streams, which rely on this income.
- Derby Week Betting Data: Last year, total Derby Day wagering reached $349 million, and total Derby Week handle hit $473.9 million, both all-time highs, demonstrating the significant economic impact of the event on related businesses such as Churchill Downs Incorporated.
See More
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- Barclays Adjusts Price Target: Barclays has reduced its price target for a specific stock from $37 to $33.
- Market Implications: This adjustment may reflect changing market conditions or company performance expectations.
See More
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- E.l.f. Beauty Growth Potential: E.l.f. Beauty's acquisition of celebrity Hailey Bieber's Rhode brand is expected to drive sales growth, with Rhode generating over $200 million in annual sales, allowing E.l.f. to leverage its influencer marketing strategy to expand product lines and distribution channels.
- DraftKings Market Competition: DraftKings faces threats from prediction markets; however, the company has launched a new super app integrating sports betting, online gaming, and prediction markets, with EBITDA margins projected to rise from 10% last year to 30% by 2030, indicating strong profitability growth potential.
- RH Brand Expansion Strategy: RH has introduced a new brand, RH Estates, aimed at catering to the luxury home market, which is expected to become its largest growth and highest-margin business in the future, as the company actively expands into international markets despite challenges in the furniture industry.
- Consumer Stock Investment Opportunities: Despite economic fluctuations impacting consumer stocks, several stocks have dropped nearly 50%, including E.l.f. Beauty and DraftKings, presenting investors with opportunities to seek long-term investments and capture potential market rebounds.
See More
