DraftKings stock rises 10% in a month as sportsbooks invest in prediction markets
DraftKings stock has climbed 10% over the past month as investors assess whether prediction markets offer more opportunity than threat to traditional sportsbooks. The company is drawing fresh attention ahead of earnings for its spending to enter the event-contract space. DraftKings is not alone: Flutter Entertainment is also investing in its FanDuel Predicts product. The valuation debate pits regulatory risk against potential new revenue streams for legacy sportsbook operators.
DraftKings' stock move signals that investors are treating prediction markets as additive revenue, not cannibalization. The company must now convert that optimism into actual market share before Kalshi's 76% lead hardens further. Flutter's parallel spending on FanDuel Predicts means two of the largest U.S. sportsbooks are now racing the same clock. Each week Kalshi maintains pricing dominance, as it did in Week 4, DraftKings and FanDuel lose ground with users who value tight spreads.
The platforms that reach sustained liquidity first will set the terms for every sportsbook partnership that follows. For DraftKings, the 10% gain is a vote of confidence that still needs product evidence to hold. Bernstein's $1.7 billion 2028 industry forecast assumes multiple regulated operators thrive; right now, Kalshi and its partners are capturing most of that flow.
DraftKings and Flutter join Robinhood in pouring resources into prediction-market products even as Kalshi faces felony criminal charges and parallel state suits that could reshape the competitive landscape for every entrant.