TD Cowen analyst Lance Vitanza has reaffirmed a Buy rating on DraftKings (NASDAQ: DKNG), maintaining a price target of $30. The endorsement reflects continued confidence in the company's market position and growth trajectory.

Analyst Rating and Target

The research note from TD Cowen sustains the previous positive stance on DraftKings. The $30 price target indicates the firm's valuation expectations for the stock.

The U.S. gambling industry is misallocating billions of dollars in marketing spend, prioritizing television and celebrity partnerships over earned media and responsible gambling programs, according to a new report released by 5W. The AI Communications Firm published The Gaming & Gambling Earned Media Playbook 2026, which draws on its Gaming Trust Index 2026 to analyze marketing spend allocation and brand credibility outcomes. The report highlights that operators with a pre-existing earned media presence achieve faster user acquisition at market open compared to those relying solely on advertising.

The study analyzed $3.9 billion in tracked U.S. gambling marketing spend across more than 47,000 articles. The data reveals a significant disparity in investment allocation. The two lowest-investment categories—earned media and responsible gambling programs—generated the highest documented return on brand credibility of any channel analyzed.

Marketing Spend Allocation

The breakdown of the $3.9 billion marketing spend shows a heavy reliance on traditional channels:

Market Expansion and Regulatory Context

The playbook comes as U.S. online gaming generated $12.8 billion in Gross Gaming Revenue (GGR) in 2025 across seven legal states. Expansion is on the horizon, with New York, Illinois, Indiana, and Virginia in active legislative consideration for online gaming. Additionally, sports betting expansion is expected in 10 or more states.

The report documents the 2021 Michigan online gaming launch as a key case study. It found that operators with pre-existing earned media presence in the state achieved faster initial user acquisition than those relying solely on advertising at market open. This pattern held true across operator scale.

DraftKings SEC Enforcement Action

The report re-anchors the September 26, 2024 SEC enforcement action against DraftKings as the defining Regulation FD case for the gaming industry. DraftKings paid a $200,000 civil penalty after its outside public relations firm posted material nonpublic information on the personal X and LinkedIn accounts of the company's CEO one week before Q2 2023 earnings. Neither account had been designated as a Regulation FD-compliant disclosure channel. The enforcement order extended responsibility to PR firms acting on behalf of the issuer.

Ronn Torossian, Founder and Chairman of 5W, stated that the industry has spent five years buying awareness but not credibility. He emphasized that the operators winning the next 24 months of state legalization will be those that built earned media presence, regulatory standing, and responsible gambling credibility before the market opened.