DraftKings becomes Kenneth Dart’s latest target as Candle Lake takes 5.8% stake

Kenneth Dart seems absolutely certain of an upturn in the fortunes of some of the world’s biggest gambling PLCs. This time, the Cayman Islands-based, US-born billionaire is placing his chips on DraftKings. DraftKings, the sixth-largest publicly-listed gambling firm by market cap, has seen its share price follow the trajectory of many of the industry’s giants in the last 12 months. The US operator’s stock on the NASDAQ Stock Exchange has fallen by 32.5% so far in 2026 and by 46.6% over the past year. This has left its shares trading at $24.04 (£17.73) and its market cap sitting at just under $12bn. Dart, who has substantial holdings in the world’s third- and fourth-largest gambling PLCs Flutter Entertainment and Evolution, has taken a 5.8% stake in DraftKings through his well-known Candle Lake investment vehicle. This is according to an SEC filing released on 14 August. Research and analysis site TipRanks states that out of 25 analyst ratings for DraftKings, 22 have rated it as a “Buy” with the other three rating it as a “Hold”. The most recent analysis came on Monday from the Benchmark Company’s Mike Hickey, who has a target price of $30. A 5.8% holding in DraftKings as of today, before market opens, gives Dart a stake of $691.94m. DraftKings joins Flutter and Evolution This goes alongside his 31.56% control in Evolution, which forced Candle Lake into a mandatory offer for the entirety of the Swedish supplier’s shares. The offer was made on Friday and was a modest one, valuing the business at SEK131.7bn (£10.21bn) – way below its market cap of SEK154.12bn. Candle Lake made clear that it does not intend to manufacture a full takeover, but its control in Flutter may force it into another mandatory offer. Dart controls around 29% of that company and has recently continued to add total-return swap exposure exceeding 21.7 million notional shares. SBC News believes if Dart and Candle Lake exceed the 30% mark, Ireland-incorporated Flutter would also be subject to a mandatory offer as per Irish Takeover Rules. It has been reported that Dart’s gamble on Flutter has already lost him around $4.2bn. He now has interests in the US’ two largest sportsbooks – Flutter Entertainment’s FanDuel and DraftKings’ sportsbook. While Candle Lake’s holding in DraftKings is currently way off its control of Evolution and Flutter, it would surprise little if it gradually increases. But despite Dart’s determination, a scattering of positive outlooks from leadership at PLCs, and optimism from analysts, the gambling industry’s position on stock markets around the world does not seem to be shifting – barring a few exceptions.