Live Betting Market: Jefferies Puts Spotlight on DraftKings as Frontrunner
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Posted on: June 11, 2025, 05:41h.
Last updated on: June 11, 2025, 05:41h.
Todd Shriber @etfgodfatherCheck out more articles on Financial, Gaming Business, Mergers and Acquisitions In-Game Betting Takes Off Among US Bettors* Potential boon for DraftKings, Sportradar* Ladies jumping on the in-game wagering bandwagon*
The craze surrounding in-game wagering is gripping the US, and that trend could be music to the ears of DraftKings (NASDAQ: DKNG) and Sportradar (NASDAQ: SRAD). According to Jefferies, in-game betting is flourishing, fueling a surge in sports wagering industry handle.
According to the research firm, DraftKings and data provider Sportradar could reap the benefits of this situation, although Flutter Entertainment's (NYSE: FLUT) FanDuel boasts an extensive parlay menu that might put it in a strong position to conquer the in-game betting competition too.
With the help of technology by companies such as Sportradar and rival Genius Sports (NYSE: GENI), sportsbooks are now able to offer live betting platforms to meet the growing demand for in-game wagering. Industry data suggests that for gaming businesses to tap into the long-term growth offered by in-game betting, such investments are necessary.
Fascinatingly, an impressive 80% of respondents claim to have already placed at least one in-game wager, with 90% expressing their interest in more opportunities to place in-game bets, signifying the importance of providing extended betting options to cater to users' desires.
A staggering 92% of players highlighted the ease of placing in-game bets as at least somewhat important, with over 95% of respondents admitting they had either checked odds or considered placing a wager during live action.
Jefferies analyst David Katz adds, "We looked at the most active cohort of in-play betting and found that 36% of respondents had already tried microbetting, with 5% of total respondents listing it as their preferred betting method, over pre-game wagers, same-game or multi-game parlays, or even in-play bets on the outcome of the game."
DraftKings recognized the significance of microbetting technology with their acquisition of Simplebet in August 2024. As microbetting continues to surge, this acquisition could prove shrewd for DraftKings, as in-game betting and its derivatives represent fast-growing areas that operators are entering to boost handle and revenue.
According to the survey, parlays remain the most popular wagers among bettors, but in-game wagering is their favored method of wagering. As expected, football and basketball hold top spots in appealing to bettors, with unexpectedly rising interest in tennis.
In-Game and Microbetting Demand Abounds
With undeniable enthusiasm for live betting offerings, and the expanding microbetting trend, the long-term growth theory for the sports wagering industry seems well-founded. This includes noteworthy companies, such as DraftKings and Sportradar.
Katz further commented, "We polled 768 smartphone users in the 18-44 age range, with 509 advancing to the broader survey because they'd bet on sports at least once. Up to 40% said they were devoted in-game bettors, and the gender gap was less pronounced than anticipated, with 54% of males expressing a preference for in-game betting compared to 46% of females."
The teled gambling market is on an impressive growth trajectory, with nearly $150 billion wagered legally in 2024. The sports betting market is projected to overtake previous years, with esports betting, a subset exponentially growing, boasting $2.5 billion in revenue and over 74 million participants globally.
Separating the DKNG Noise
DraftKings shares have remained relatively stable over the past month—a notable feat considering Illinois raised its sports betting tax for the second consecutive year, a tax grab that specifically targets the state's largest operators, namely FanDuel and DraftKings.
Katz believes that the noise surrounding DraftKings stock originates from several factors, including the Illinois tax increase, prediction markets, stagnant population growth in the US, and the lack of new states legalizing iGaming and sports betting. Once investors look beyond these issues, they can recognize DraftKings as one of the top investment ideas in the gaming, lodging, and leisure (GLL) industry.
"We believe that the structural growth in the industry can't be matched elsewhere in the GLL space, and we remain bullish," concludes the analyst. "Additionally, we believe that 1) in-play betting could represent a new leg higher in handle, regardless of new state legalizations, and 2) DKNG is likely to be the leader in in-play due to its acquisition of Simplebet and focus on the vertical."
Relevant Insights
- Sharp Rise in Preference for Mobile Betting: The use of mobile applications for placing bets has skyrocketed, accounting for over 84% of bets placed in the US[1].
- Real-Time, AI-Powered Betting Experience: Real-time odds, personalized betting suggestions, and risk management tools are becoming essential features offered by sportsbooks[1].
- Growing Esports and Microbetting Market: The esports and microbetting segment is thriving, witnessing a surge in revenue, identifying new markets, and requiring continuous innovation[3].
[1]: Jefferies Online Sports Betting Survey 2025[2]: Statista Research Department[3]: Newzoo Global Esports Market Report 2025
- The potential growth in the in-game betting industry could benefit companies such as DraftKings and technology providers like Sportradar, given the increasing demand for live betting platforms.
- According to the Jefferies Online Sports Betting Survey 2025, the growing esports and microbetting market requires continuous innovation, which could lead to new opportunities for companies in the finance and gaming business sector.
