This coming Sunday, the 59th Super Bowl is set to draw in an unprecedented amount of betting dollars through legal sports gambling platforms, which could potentially benefit Caesars Entertainment’s stock. This optimism comes from the fact that the game is taking place in the 76,500-seat Caesars Superdome in New Orleans, as noted by Bank of America. Analyst Shaun Kelley highlighted information from the American Gaming Association in a report released on Friday, predicting that sports bettors in the U.S. will legally wager around $1.4 billion on this year’s big game.
This year’s Super Bowl will showcase the Kansas City Chiefs, making their third consecutive appearance, as they face off against the Philadelphia Eagles in a rematch of Super Bowl 57. Adding to the excitement, Taylor Swift is scheduled to attend again, linked to her relationship with Kansas City tight end Travis Kelce. Last year, when Swift attended, an extra 7% of viewers were drawn to the event. Sportsbooks are smartly leveraging her presence, offering special promotions that highlight Swift and Kelce.
Bank of America is particularly confident about Caesars Entertainment’s prospects because the game is hosted at the venue they named, boosting the brand’s visibility on TV and likely driving traffic to its online sportsbook offerings. Kelley pointed out, “Given that the game is held at the Caesars Superdome, the Caesars brand is expected to gain substantial airtime. Additionally, the recently renovated New Orleans casino is poised to benefit from heightened activity surrounding the game.”
Consensus among analysts surveyed by FactSet rates Caesars as a buy, suggesting about a 39% potential upside over the next year. While Caesars’ shares have underperformed the market over the past year, dipping 17%, the stock has recently rebounded by climbing 8% in the past month.
However, Caesars Entertainment isn’t the only online gambling stock generating buzz as the Super Bowl approaches. Needham analyst Bernie McTernan also identified DraftKings as a potential winner, thanks in part to its “King of the End Zone” betting promotion, which has sparked similar initiatives from competitors like Flutter Entertainment, operator of FanDuel. Needham gives DraftKings a buy rating, setting a price target of $60 per share, which represents a 42% upside from Thursday’s closing price of $42.28.
McTernan remarked, “For Super Bowl promotions, we’re seeing more jackpot-style promos, with others following DKNG’s King of the Court/King of the End Zone. DraftKings has also been offering ‘happy hour’ deals to boost activity in the days leading up to the game.”
