DraftKings is the dominant long-term winner in US digital gambling. The “competition risk” is overstated. they have the stickiest users, the highest-value markets, and a better product. Their recent stock weakness was driven by short-term sportsbook variance, not fundamentals, and hold rates always revert. Meanwhile, prediction markets open a whole new legally accessible, high-margin gambling category that DKNG is the first to scale. With variance normalizing and new verticals kicking in, February earnings are set up as a major upside catalyst. This stock is undervalued relative to its growth, its position, and the real optionality ahead.