Key Moments:
- DraftKings has reported record revenue and Adjusted EBITDA in its Q2 2025 results
- Jefferies research showed in-play betting activity increased by 10% since the first quarter
- 84% of surveyed bettors have placed at least one proposition wager
Accelerating Momentum for In-Play and Prop Betting
DraftKings is positioned to capitalize on accelerating interest in in-play and proposition wagers, identified by Jefferies Equity Research analyst David Katz as a primary growth factor for the company. In a September 9 investor note, Katz called attention to the company’s Q2 2025 performance, pointing out that both revenue and Adjusted EBITDA reached historic highs.
Katz also highlighted that other players, such as Sportradar, a major provider of data infrastructure for gaming operators, could benefit from the surging demand for in-game betting. Flutter Entertainment was noted as maintaining its strong status among investment opportunities, specifically referencing its place on Goldman Sachs’ Hedge Fund VIP list.
Survey Insights: Bettor Preferences and Key Trends
Insights from Jefferies’ research found significant adoption and engagement with new betting formats:
| Betting Format | Participation Rate |
|---|---|
| In-Play Betting (activity increase since Q1) | 10% |
| Single-Game Parlays | 54% of respondents |
| Multi-Game Parlays | 43% of respondents |
| Proposition Wagers | 84% of bettors |
Katz contrasted online sports betting with event-based prediction markets, describing the latter as a much smaller segment, even with contracts reaching 60% U.S. market penetration. He observed, “further evidence of its capped economic ceiling” when those contracts are compared to online wagering figures.
Jefferies’ findings underlined that proposition bets have become fundamental for user engagement with sportsbooks. The research also revealed that 44% of respondents considered in-play betting availability “very important,” up 9 percentage points since June. Notably, a quarter of individuals who previously opposed prop bets shifted their attitudes since that time.
Shifting Demographics and Operator Rankings
Survey responses indicated changing viewer habits and increasing appetite for more betting options, with 92% citing enhanced gameplay enjoyment and half stating expanded options would be a major improvement. Football and basketball led the way for in-play betting at 70% and 62% popularity, respectively. Women represented 40% of all survey participants, a group considered to have unique preferences distinct from men.
Operators such as BetMGM, which launched gift cards through TAPP in July, and Fanatics, holding a private valuation of $31 billion and ranking 18th globally, received notable support from consumers. Conversely, Caesars Sportsbook and ESPN Bet experienced weaker performance in the study.
A trend toward more active betting was registered, with the share of players expecting to increase their betting moving from 32% in June to 41% currently.
Industry Outlook and Strategic Positioning
Despite facing potential headwinds such as new taxation, market slowdowns at the state level, and growing interest in event contracts, Katz concluded that these factors have largely been reflected in current valuations. He stated, “Finally, we still see in-play betting as a new leg higher in handle, regardless of new state legalizations, and believe that DKNG is likely to be the leader in in-play due to its acquisition of SimpleBet and focus on the vertical.”
- Author
Daniel Williams
