Gaming: Is OSB vs. PM Narrative Poised to Pivot? Buy DKNG/FLUT as Data Points to Expanded TAM, Not Cannibalization

Research evidence excerpt

Gaming: Is OSB vs. PM Narrative Poised to Pivot? Buy DKNG/FLUT as Data Points to Expanded TAM, Not Cannibalization

Global Idea

May 21, 2026 04:01 AM GMT

Morgan Stanley & Co. LLCMGaming Stephen W Grambling

Equity Analyst

Is OSB vs. PM Narrative Poised Stephen.Grambling@morganstanley.comMorgan Stanley & Co. International plc+ +1 212 761-1010

Ed Young

Equity Analystto Pivot? Buy DKNG/FLUT as Ed.Young@morganstanley.com +44 20 7677-1761

Morgan Stanley & Co. LLCData Points to Expanded TAM, Michael J. Cyprys, CFA, CPA

Michael.Cyprys@morganstanley.com +1 212 761-7619Not Cannibalization

Nicholas P DeValeria

New credit card data (~9mn users) comparing online sports Nick.DeValeria@morganstanley.com +1 212 761-1413

Kun Chen

betting w/prediction markets shows little overlap between Equity Strategist

Kalshi & DKNG/FLUT as PMs skew to GenZ, sharps/whales & Kun.Chen1@morganstanley.com +1 212 761-5228

Barron Thomas

non-OSB markets. We think PM expansion optionality is not Research Associate

Barron.Thomas@morganstanley.com +1 212 761-2624

priced into DKNG/FLUT; stay OW both headed into an expanded Molly Baum

TAM in 2H. Equity Analyst

Molly.Baum@morganstanley.com +1 212 761-0378

James F Koehne, CFA

Research AssociateM James.Koehne@morganstanley.com +1 212 761-2186

Key Takeaways

Gaming & Lodging

New credit card data analysis gives us more confidence that DKNG/FLUT's North America

expansion into prediction markets will expand the TAM via new markets & Industry View In-Line

Leisure and Hotels

demographics.

Europe

Moreover, the data shows ongoing growth in existing market via higher deposit Industry View Attractive

frequency, countering the maturation narrative.

With DKNG/FLUT trading at ~15x/~7.5x 2027e MS EV/EBITDA (burdened for SBC)