enthusiastic on individual names<\/a>.<\/span><\/p>\nIn a note to clients today, Macquarie analyst Chad Beynon reiterated an \u201coutperform\u201d and $75 price target on DraftKings (NASDAQ:DKNG) stock, highlighting some positive customer acquisition cost (CAC) trends.<\/span><\/strong><\/p>\n\u201cDKNG adheres to a disciplined marketing approach based on ‘permissible CAC’ and continues to acquire users at levels below the 2-3 year payback period that the company has talked about,\u201d said Beynon. \u201cOver time, marketing costs should naturally subside as states mature, given the cost of promos for existing users is significantly lower than for new sign-ups.\u201d<\/span><\/p>\nVital to the DraftKings investment thesis, Beynon notes the company believes it hasn’t even scratched the surface of its total addressable market (TAM).<\/span><\/p>\n\u201c<\/span>DKNG believes its sports\/iGaming TAM estimates are conservative, and notes it is nowhere near penetrated, even in its most mature states. DKNG continues to look for new verticals to expand the overall TAM that meeting the following criteria: 1) feed the core gaming engine; 2) are standalone profitable; 3) consistent with DKNG’s mobile tech DNA,\u201d according to the analyst.<\/span><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"In one of the biggest forecasts to date on internet casino and sports betting revenue, Eilers & Krejcik Gaming estimates that figure could ascend to $40 billion if all 50 states join the live and legal fray. As of the end of July, domestic sports betting revenue is up 435 percent year-over-year to $2.12 billion, […]<\/p>\n","protected":false},"author":46,"featured_media":186065,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[19,1074],"tags":[],"acf":[],"yoast_head":"\n
Eilers & Krejcik Forecasts iGaming, Sports Betting Sales Rising to $40B<\/title>\n\n\n\n\n\n\n\n\n\n\n\n\n\t\n\t\n\t\n\n\n\n\n\n\t\n\t\n\t\n