Overview
BMO Capital Markets identified DraftKings as its preferred name in the gaming industry, citing momentum in the company’s prediction markets product and what it sees as significant upside potential. The investment bank reiterated an Outperform rating and kept a $50 price target on DraftKings (NASDAQ:DKNG).
May volumes and growth
In its review, BMO highlighted May figures showing notable increases in DraftKings’ prediction market activity. The firm reported that annualized consumer volume rose 24% month-over-month to $1.3 billion, while annualized total volume increased 34% month-over-month to $3.1 billion. BMO interpreted these month-over-month gains as evidence that the integrated prediction product is scaling.
Position in the market and competitive context
While BMO described the product as still in early stages of adoption and productization, the firm said there is material room for further scaling through additional product investment and marketing. The report contrasted DraftKings’ growing volumes with industry leader Kalshi, which BMO noted reported $178 billion of annualized prediction market volume in April 2026, up from $5.5 billion in April 2025. BMO observed that a large portion of Kalshi’s volume appears to be sports-related inventory, underscoring the potential market opportunity available to DraftKings as it advances its product roadmap.
Brokerage coverage
Other investment firms have maintained positive stances on DraftKings recently. Morgan Stanley reiterated an Overweight rating and indicated that the volume disclosures could imply upside to its modeling. Jefferies and Bernstein also reaffirmed their Buy and Outperform ratings, respectively.
Implications for the gaming sector
BMO’s note frames DraftKings’ prediction offering as an incremental growth avenue that could broaden the company’s revenue mix if adoption continues. The firm’s focus on month-over-month volume acceleration suggests they view the product’s scaling dynamics as an important driver for future performance.
Conclusion
BMO maintains a constructive view on DraftKings based on recent volume disclosures, leaving the company as its Top Pick in the gaming sector while acknowledging that DraftKings remains behind category leaders in total prediction market volume and has further ground to cover as it scales its product.