The NFL season gives fans plenty to look forward to. For investors, it also brings a reason to watch NFL betting stocks that could benefit from months of betting activity. DraftKings (NASDAQ: DKNG) is one of those names, with Bank of America (NYSE: BAC) recently upgrading the stock to Buy from Neutral, pointing to opportunities in prediction markets and a potentially improving earnings outlook.
The betting market is substantial. The American Gaming Association expects Americans to wager about $29.5 billion through regulated commercial sportsbooks during the 2026 NFL season. That’s only slightly above last season’s $29.4 billion, but it still gives companies like DraftKings a large pool of business to compete for.
Of course, the amount wagered isn’t the same as revenue. Sportsbooks have to pay winning bettors, cover expenses, and spend money attracting customers. For investors, the real question is how much of that activity turns into profit.
NFL Betting Stocks: Why Bank of America Likes DraftKings Stock
One reason behind Bank of America’s upgrade is its more optimistic view of prediction markets. The firm sees less risk that these products will take business away from DraftKings’ traditional sportsbook. It also believes Wall Street’s earnings estimates may be nearing a bottom.
Prediction markets allow customers to trade contracts based on whether an event happens. For DraftKings, that could create another way to attract customers and give existing users more reasons to stay active. The idea is easy to understand. DraftKings already has an audience familiar with its brand. Adding products could help it earn more business from that audience while reaching new customers.
NFL Betting Stocks: BETZ ETF Offers Diversified Sports Betting Stock Exposure
Buying DraftKings shares is one way to invest in the theme. For investors who would rather spread their money across several companies, there’s the Roundhill Sports Betting & iGaming ETF (NYSEARCA: BETZ).
This actively managed fund focuses on sports betting and online gaming. Its published holdings include DraftKings, Flutter Entertainment (NYSE: FLUT) —the company behind FanDuel and Rush Street Interactive. Its annual expense ratio is 0.75%, or roughly $75 a year on a $10,000 investment, assuming the investment’s value stays constant.
The appeal is straightforward: you don’t have to pick a single winner. Owning several companies reduces your dependence on how well any one business performs. Still, these companies face many of the same challenges. Higher taxes, tougher regulations, and expensive competition for customers could weigh on several holdings at once.
NFL Betting Stocks: ODDZ ETF Expands Exposure Beyond Sports Betting Stocks
Another option is the Corgi Sports Betting & Gambling ETF (BATS: ODDZ). This actively managed fund can invest across the gambling industry, including sportsbooks, casinos, online gaming platforms, and businesses that supply betting technology and data. Its annual expense ratio is 0.35%, which works out to about $35 per year on a steady $10,000 investment.
That approach gives investors exposure to more than the companies accepting bets. It can also include businesses supplying the systems and services that keep the industry running. However, ODDZ isn’t strictly an NFL investment. Its broader gambling exposure means casino spending, overseas markets, and other developments can also influence its performance.
NFL Betting Stocks: DRAY ETF Uses DraftKings Options to Generate Income
The YieldMax DKNG Option Income Strategy ETF (NYSEARCA: DRAY) takes a different approach.
DRAY uses options tied to DraftKings to seek weekly income while maintaining exposure to movements in the stock. Its strategy includes selling call spreads, and the issuer lists a gross annual expense ratio of 1.03%.
For investors, the attraction is the potential for regular cash payments. But those payments can vary, and they shouldn’t be confused with a guaranteed return. Distributions may include a return of capital. There’s also a trade-off: the options strategy can limit participation in a strong DraftKings rally, while investors remain exposed to losses if the stock falls. A weekly payout won’t necessarily offset a declining share price.
In the end, DraftKings offers direct exposure to one operator; BETZ and ODDZ hold baskets of industry stocks, and DRAY offers an options-based income approach. Understanding those differences is a useful first step before choosing how to invest.