Jefferies Optimistic About DraftKings as In-Play Betting Gains Momentum
DraftKings Positioned for Growth with Rising Popularity of In-Play Betting
DraftKings is gearing up to capitalize on one of the most rapidly expanding segments in online sports betting: in-play and proposition wagers. This positive outlook comes from Jefferies Equity Research analyst David Katz, who highlighted in a September 9 investor report that strengthening trends in in-play betting are a significant growth driver for the company.
In-Play Betting’s Growing Importance Among Bettors
Katz emphasized that DraftKings, which recently reported outstanding Q2 2025 financial results with record revenue and Adjusted EBITDA, is not the only beneficiary of this trend. Data provider Sportradar, which supports many sportsbooks, is also well positioned to benefit from the escalating demand for live, in-game wagers.
Similarly, Flutter Entertainment maintains its strong reputation as a top investment prospect, recognized by Goldman Sachs on its Hedge Fund VIP list, reflecting industry confidence in companies capitalizing on in-play betting growth.
Jefferies’ data shows that in-play betting activity has increased by 10% since the start of the year, and more than half of respondents have tried single-game parlays, while 43% have engaged in multi-game parlays.
Although event-based prediction markets have gained some traction, achieving a 60% penetration in the U.S. market, Katz notes these remain a niche with limited economic potential compared to online sports betting.
Conversely, proposition bets have become essential to sportsbook engagement, with 84% of bettors placing at least one such wager related to specific moments in games or overall outcomes.
Katz further revealed that 44% of participants consider in-play betting availability as ‘very important,’ an increase of nine percentage points since June, and that a quarter of players who previously ignored proposition bets have since changed their stance.
Football and Basketball Lead as Preferred Sports for In-Play Betting
This shift is transforming the sports viewing experience. About 92% of those surveyed said that having more betting options makes watching games more enjoyable, with half viewing it as a significant enhancement.
Football (70%) and basketball (62%) are the leading sports for in-play betting, and women make up 40% of bettors, representing a potentially underestimated demographic with distinct preferences.
Operators such as BetMGM, which introduced innovative gift cards in Canada branded by the sportsbook TAPP, and Fanatics, valued at $31 billion and ranked 18th among private companies worldwide, received favorable support among consumers.
However, Caesars Sportsbook and ESPN Bet are trailing behind. Overall, the proportion of bettors expecting to increase their betting activity has risen from 32% in June to 41% currently.
Despite challenges like higher taxes, regulatory delays, and competition from event contracts, Katz believes these factors are mostly accounted for in the market. He concludes that in-play betting represents a new growth avenue for wagering volume, and DraftKings is well-positioned to lead in this space due to its acquisition of SimpleBet and dedicated focus on this vertical.
