Super Bowl Betting Expected to Reach Record Levels, and Bank of America Sees One Stock in Particular Winning

The 59th Super Bowl, scheduled for this Sunday, is expected to generate a record-breaking amount of legal sports betting activity, potentially boosting the stock performance of Caesars Entertainment, according to Bank of America (BofA). This year’s game will be held at the Caesars Superdome in New Orleans, a 76,500-seat venue that prominently features the company’s branding, which could further enhance its exposure and impact.

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BofA analyst Shaun Kelley referenced data from the American Gaming Association in a research report released Friday, projecting that U.S. bettors will legally wager around $1.4 billion on the Super Bowl, setting a new record. The 2025 matchup features the Kansas City Chiefs, making their third consecutive appearance and looking to defend their championship title, in a highly anticipated rematch of Super Bowl 57 against the Philadelphia Eagles. This strong storyline is expected to draw even more attention from both sports fans and bettors.

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Adding to the excitement is pop superstar Taylor Swift, whose relationship with Kansas City Chiefs tight end Travis Kelce has captivated fans beyond the usual football audience. Swift’s planned attendance at the game is expected to boost viewership for the second year in a row.

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Last year, her presence contributed to a 7% increase in Super Bowl viewership compared to the previous year, according to BofA. Recognizing her influence, sportsbooks are offering special promotions centered around Swift and Kelce, tapping into the widespread interest in their relationship to attract more bettors.

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BofA is particularly optimistic about Caesars Entertainment’s prospects, noting that the company stands to benefit significantly from the Super Bowl being held at a stadium bearing its name. The visibility of the Caesars brand during the game is expected to be substantial, thanks to extensive television coverage and the company’s promotional efforts for its online sportsbook.

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"Since the game is being held at the Caesars Superdome, the Caesars brand will likely get a lot of airtime, and the newly renovated New Orleans casino should benefit from increased activity around the game," Kelley commented. The combination of high-profile exposure and heightened foot traffic in New Orleans could drive both short-term and long-term gains for Caesars.

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Analyst sentiment toward Caesars is generally positive. According to FactSet, nearly 75% of analysts covering the stock rate it as a buy or equivalent, with a consensus price target suggesting about 39% upside potential over the next 12 months. While Caesars’ shares have underperformed in the past year, declining 17%, they’ve shown signs of recovery recently, climbing 8% over the past month.

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However, Caesars isn’t the only company poised to benefit from the surge in Super Bowl-related betting. Analysts are also eyeing DraftKings as a potential winner in the online gambling space. Needham analyst Bernie McTernan highlighted DraftKings' "King of the End Zone" betting promotion as a key driver of customer engagement ahead of the game. This promotional strategy has been influential enough to prompt rival FanDuel, operated by Flutter Entertainment, to launch a similar campaign to stay competitive.

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Needham maintains a buy rating on DraftKings, with a price target of $60 per share, representing roughly 42% upside from its closing price of $42.28 on Thursday. McTernan pointed out that DraftKings’ innovative promotional efforts are helping the company stand out in an increasingly crowded market.

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“For Super Bowl promos, we are seeing more jackpot promos with others following DKNG’s King of the Court/King of the End Zone,” McTernan noted. “Also, DKNG has been offering ‘happy hour’ promotions aimed at driving activity days ahead of the game.” These time-sensitive offers are designed to keep bettors engaged in the lead-up to the Super Bowl, creating momentum that could translate into increased revenue for the company.

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The broader trend of growing interest in legal sports betting is likely to continue, fueled by major sporting events like the Super Bowl, which attract both seasoned gamblers and casual fans. Companies like Caesars Entertainment and DraftKings are well-positioned to capitalize on this trend, especially as they continue to roll out creative marketing strategies and leverage high-profile partnerships.

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With the Super Bowl set to draw massive viewership, fueled by both the game itself and the added celebrity factor of Taylor Swift, the stakes are high not just for the teams on the field but also for the companies competing in the rapidly expanding sports betting market. Investors will be watching closely to see how these dynamics play out, as the results could have a significant impact on the performance of key players in the industry in the months to come.

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