It might amaze some—especially those for whom snow has recently melted—that the Kentucky Derby is only a few weeks away. DraftKings (NASDAQ:DKNG) isn’t letting any of that recently revealed grass grow under its feet, though; it’s planning to bring out a new horse betting app just in time for the big race. It’s already brought the race out to several states, and investors are cheering as they back their new horse — DraftKings itself, up over 7% in Wednesday afternoon trading.
Pick the best stocks and maximize your portfolio:
- Discover top-rated stocks from highly ranked analysts with Analyst Top Stocks!
- Easily identify outperforming stocks and invest smarter with Top Smart Score Stocks
So far, reports note, 12 states have the new DraftKings app in place. Known as DK Horse, eligible customers will be able to place bets thanks to an agreement with Churchill Downs (NASDAQ:CHDN). The agreement opens up access to pari-mutuel betting and allows users to not only place bets but also handicap races and even watch the races themselves through the app.
In perhaps a speed bump for the app, though, DK Horse is considered a separate operation. Therefore, those who want to use it will have to register independently and deposit funds into a new account to use the app and bet on horses. DraftKings has been working hard to land new legal approvals to ensure there would be at least a potential pool of interested gamblers ready to go before the major horse races got underway.
Analysts are certainly ready to place bets on DraftKings itself, though. Analyst consensus calls DraftKings stock a Moderate Buy. Further, with an average price target of $22.70, DraftKings stock comes with 19.92% upside potential.
