Airline company Delta Air Lines (DAL) hinted at entering the sports betting scene after announcing a new partnership with DraftKings (DKNG) during the Consumer Electronic Show (CES). CEO Ed Bastian highlighted how gaming has become a daily activity for many passengers and expressed excitement about expanding Delta’s gaming options via Delta Sync and seatback screens.
Stay Ahead of the Market:
- Discover outperforming stocks and invest smarter with Top Smart Score Stocks
- Filter, analyze, and streamline your search for investment opportunities using Tipranks' Stock Screener
While specific details weren’t shared, there is speculation that the partnership may include SkyMiles rewards for DraftKings betting and in-flight integration of DraftKings content. This would build on Delta’s existing entertainment offerings, though the scope of such activities remains unclear.
U.S. law currently prohibits gambling on domestic flights under the 1962 Gambling Devices Act and the Gorton Amendment. However, gambling is allowed on international flights that do not fly over or connect with U.S. territory, which raises questions about how Delta might implement this feature within legal bounds.
Is DAL Stock a Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on DAL stock based on 18 Buys, zero Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. After a 47% rally in its share price over the past year, the average DAL price target of $77.78 per share implies 26.64% upside potential.
