Sports and gambling often go hand in hand. There are now 30 states across the U.S. -- with a combined population of 100 million people -- that have legalized sports betting or wagering. As we kick off the largest sporting event of the year this weekend, we could see the dollars piling into DraftKings (NASDAQ: DKNG) accounts in the pursuit of a quick buck.

Superbowl sports betting by the numbers

In the last two years, Statista estimates the amount wagered on Superbowl events to be more than $11 billion; $6.8 billion in 2020, and $4.3 billion in 2021. But recent estimates show that the total gambling spend for the upcoming Superbowl could shatter previous records to come in above $7.6 billion.

That's without taking the illegal betting market into account, which makes up another several billion each year. With more relaxed regulatory scrutiny, we could see a stronger uptick of cash making its way in to the hands of bookmakers like DraftKings over black market dealings.

DraftKings is in a position to benefit

DraftKings has become synonymous with sports betting as the company has developed its entire brand around these large scale events. Its online sportsbook is now available in 18 of those 30 states, with its most recent addition being Louisiana in the past fortnight, right on time for the biggest period of the year.

Last year, DraftKings brought in $312 million in Q1 when the Superbowl took place which was a 175% year-over-year (YoY) increase. The company has made leaps and bounds since then, launching services in new states such as Arizona, Wyoming, Connecticut, Michigan, Virginia, and as above, Louisiana. The company has invested heavily in a brand new interface, along with its 'flash bet' functionality which gives users an all immersive live betting experience.

On top of the improvements in the overall user experience in-app, 'DraftKings Marketplace' has launched in recent months, which could see an additional boost to its NFL-inspired range of non fungible tokens (NFTs).

DraftKings' growth potential

As with many growth stocks, DraftKings has taken a hit over the last couple of months. The SPAC association probably hasn't done the company any favours in that regard either. But, not all SPACs are born equal, and DraftKings has proven its a fundamentally solid business by continuously innovating in this growing sector. It's quickly become one of the largest and most regonizable brands in the space.

The gambling sector certainly isn't a sector all investors love but if I was looking at a hard-hit growth story that will rise again, I'd back this one.