Digital Q2 Preview: Spain won the World Cup, but will OSB or PMs win football?

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Digital Q2 Preview: Spain won the World Cup, but will OSB or PMs win football?

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Gaming

Digital Q2 Preview: Spain won the World

Cup, but will OSB or PMs win football?

Estimate Change

Digital Gaming Q2 Preview 21 July 2026

Flutter Entertainment (ticker: FLUT) is set to report earnings on August 5th and Equity

DraftKings (ticker: DKNG) on August 6th. We have published several bridges on Q2 United States

EBITDA, and we think some risk to Street numbers for DKNG is understood, but we are Gaming

still more conservative on expected strong PM and World Cup customer acquisition. We

lower our Q2 EBITDA estimate for FanDuel to $110M (vs. the Street’s $113M), and Julie Hoover Research Analyst

lower our DraftKings Q2 EBITDA estimate to $120M (vs. the Street’s $173M). BofAS

+1 646 855 0674

Bottom line: Into Q2 prints, investors are focused on 1) full year guides, 2) risk of julie.hoover@bofa.com

cannibalization from prediction markets (PMs), and 3) DKNG and FanDuel’s own PM ShaunResearchC. AnalystKelley

initiatives (see note, DKNG: Bull-bear update). While unfavorable outcomes and earlier BofAS

PM investment may weigh on DKNG’s 2Q earnings, we expect both DKNG and FanDuel +1shaun.kelley@bofa.com646 855 1005

to maintain their full year EBITDA guides. We reiterate Neutral on DKNG and FLUT. Dany Asad

Research Analyst

Prediction market volume increasing, cannibalization too? BofAS+1 646 855 5238

Total PM volume surpassed $40B in June, compared to OSB handle of ~$12B. On a more dany.asad@bofa.com

comparable basis, we estimate PM consumer volume reached ~$10B in June, or ~85% of

OSB handle. Beyond volume, Kalshi’s active users are only -13% lower than FanDuel’s in

July and ~21% lower than DKNG’s. Additionally, the % of DKNG users who also use