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DraftKings’ core online sports betting business was tracking well through the third quarter to date, according to J.P. Morgan analyst Dan Politzer after meetings with company executives at G2E in Las Vegas.
For New York readers, the clearest state-specific note was that hold was tracking “just fine” outside New York, suggesting the state remained an exception in Politzer’s latest read on performance.
What analysts said about DraftKings at G2E
Politzer said he met with DraftKings CFO Alan Ellingson and investor relations executive Matt Gaudioso during the conference. In a note dated Sept. 30, he said handle was a bright spot in online sports betting through 3QTD.
He also said DraftKings is still focused on the “slots-first” iGaming customer and is slowly regaining traction in that segment, though he added that it will take time.
Another key takeaway was on prediction markets. Politzer said investment tied to that area is being pulled forward from FY27 into FY26.
At the same time, he said the regulatory backdrop remains uncertain. According to Politzer, DraftKings sees a “legitimate possibility” that sports prediction markets are here to stay, but that the opportunity could be limited to single-game event trades with economic implications.
Broader gaming sentiment remains cautious but more constructive on value
The CDC Gaming roundup also cited Jefferies analyst David Katz and Truist Securities analyst Barry Jonas, both of whom described a gaming sector still dealing with weak near-term narratives.
Katz said G2E reinforced his view that gaming stocks are caught between near-term pressure and stronger long-term earnings power. He pointed to prediction markets, demand trends, consumer health, and capital allocation as major topics.
Jonas similarly said legal uncertainty around prediction markets was one of the dominant themes at G2E, alongside gaming M&A, Las Vegas Strip macro challenges, regional and local market strength, and REIT opportunities.
For players and investors following DraftKings, the immediate takeaway is more about strategy than product change: analysts came away seeing stable sports betting trends, a gradual iGaming recovery, and a quicker investment timeline for prediction markets. What happens next may depend less on demand and more on how regulators define the boundaries for those markets.
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Source: As reported by cdcgaming.com.
