U.S. Powerball Jackpot Surge Fuels DraftKings Stock Rally (DKNG) - Here’s Why

Jackpot Mania Sparks Sports Betting Frenzy

The Powerball jackpot's meteoric rise isn't just creating lottery dreams—it's turbocharging DraftKings' stock momentum. As the prize pool swells, so does investor appetite for the sports betting giant.

Gambling Psychology Meets Market Momentum

Massive lottery jackpots trigger a psychological spillover effect. Suddenly, dropping $100 on parlays feels reasonable when millions chase billion-to-one odds. DraftKings rides this wave of heightened gambling sentiment straight to the bank.

Market Responds to Hype Cycle

DKNG shares catch updrafts whenever jackpots balloon. It's the casino equivalent of 'a rising tide lifts all boats'—except the house always wins. Wall Street bets on betting, creating a self-reinforcing cycle that would make any degenerate gambler proud.

Because nothing says 'sound investment strategy' like chasing lottery-adjacent hype—because fundamentals are so 2020.

Elevate Your Investing Strategy:

• Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.

The current Powerball is the third-largest lottery prize in U.S. history. Enthusiasm for the gargantuan winnings is fueling business on Jackpocket, a lottery courier owned by DraftKings that is currently available in 16 American states.

DraftKings said 15 million Powerball tickets have been ordered using Jackpocket. Powerball ticket sales on the platform jumped 130% between Sept. 3 and 4, with sales rising 200% from the previous week as people clamor to buy tickets for the huge prize.

Powerball Fever

With nobody claiming a winning ticket for the latest draw on Sept. 3, the Powerball jackpot has grown from $1.4 billion to $1.7 billion, or $770 million in a lump sum payment. People can purchase lottery tickets, including for the Powerball, on the DraftKings app, and the Jackpocket courier fulfills the order, charging a fee in the process.

With Powerball fever gripping America, DKNG stock is marching higher. So far in September, DraftKings’ share price has risen 4%, although it is also getting a boost from the start of the NFL football season. However, the odds of winning the growing Powerball are slim. Currently, the odds of a person winning the $1.7 billion jackpot are just 1 in 292 million.

Is DKNG Stock a Buy?

The stock of DraftKings has a consensus Strong Buy rating among 27 Wall Street analysts. That rating is based on 25 Buy and two Hold recommendations issued in the last three months. The average DKNG price target of $55.29 implies 18.78% upside from current levels.