DraftKings could buy back $18 billion in stock over decade, Morningstar analyst says

US sports betting giant DraftKings could repurchase as much as $18 billion of its shares over the next 10 years, according to Morningstar analyst Dan Wasiolek, who said the gaming operator’s financial health supports a long-term capital return plan.

“We see DraftKings’ financial health as extremely sound,” Wasiolek wrote in a note. “The company remains in a net cash position, ending 2024 with $1.33 billion in cash against $1.26 billion in long-term debt, which is not scheduled to mature until 2028. Further, DraftKings has $500 million available in an untapped revolver.”

Boston-based DraftKings is already executing a $1 billion buyback plan launched last year, retiring 6.5 million shares in the first half of 2025. While the company has not announced any new authorizations, Morningstar said future repurchases could amount to $18 billion, a large sum relative to DraftKings’ $22.69 billion market capitalization.

Morningstar highlighted DraftKings’ competitive positioning alongside rival FanDuel, assigning it a narrow moat rating. “Despite ongoing competition and the threat of heightened regulation, we think DraftKings’ stout technology and product offering produce a brand advantage,” Wasiolek said.

The firm sees a 21% compound annual revenue growth rate through 2029, supported by product investment, in-game wagering, and an in-house technology platform acquired in 2020.

DraftKings shares closed down 1.49% on Aug. 19 at a market cap of $22.69 billion, with $480 million in trading volume, ranking 196th among U.S. stocks by activity.