Forget PENN Entertainment, This Sports Betting Stock Is a Much Better Buy

Core Insights - The sports betting industry in the U.S. has seen significant growth since the Supreme Court allowed states to legalize it, with 38 states and Washington, D.C. legalizing sports betting in some form [1] Company Analysis - Penn Entertainment has experienced a decline in stock value, down approximately 57% over the past three years, while DraftKings has seen an increase of around 122% in the same period [3] - DraftKings operates a diversified ecosystem that includes sports betting, daily fantasy sports, iGaming, and lottery, allowing it to acquire and retain customers through multiple channels [4][5] - DraftKings has an asset-light business model focused on software, which enables easier scalability and reduces reliance on debt compared to traditional physical casinos [9] Financial Performance - DraftKings reported an adjusted EBITDA loss of over $700 million in 2022 but expects a turnaround to between $450 million and $550 million in the current year, indicating a potential improvement of $1.15 billion to $1.25 billion over three years [10]