Core Insights - DraftKings Inc. (DKNG) has experienced a significant decline of nearly 27.8% in its stock value over the past three months, primarily due to weaker-than-expected third-quarter 2025 results and a reduced fiscal 2025 outlook [1][7] - The broader industry has seen a decline of 5.7%, while the S&P 500 has gained 7.7% during the same period, indicating DraftKings' underperformance relative to both the industry and the market [1][7] Financial Performance - The company's third-quarter 2025 results were adversely affected by "customer-friendly" sports outcomes, which resulted in a revenue loss exceeding $300 million, leading to a negative adjusted EBITDA of $127 million [5][6] - DraftKings has revised its full-year revenue forecast to a range of $5.9 billion to $6.1 billion, down from the previous range of $6.2 billion to $6.4 billion [5][9] - The adjusted EBITDA projection for fiscal 2025 has been slashed from $800 million to $900 million down to $450 million to $550 million, reflecting a significant downgrade in profitability expectations [9] Strategic Initiatives - The company is increasing spending on new initiatives, including a predictions product and media partnerships, which has raised investor concerns about short-term financial performance [6][9] - DraftKings is preparing to launch a Spanish-language sportsbook interface ahead of the 2026 World Cup, targeting a growing demographic segment [15] Market Positioning - Despite recent setbacks, DraftKings maintains strong underlying customer metrics, with Monthly Unique Players growing by 6% and sportsbook handle rising by 10% to $11.4 billion [12][13] - The company has secured exclusive marketing partnerships with ESPN and NBCUniversal, which are expected to enhance brand reach and customer retention [14] Valuation - DraftKings is currently valued at a discount compared to the industry, with a forward 12-month price-to-sales ratio of 2.18, lower than the industry average [17]

Sports betting stock Flutter Entertainment PLC (NYSE:FLUT) is falling sharply today, last seen down 8.8% at $213.87, after mixed third-quarter results. Adjusted third-quarter earnings of $1.64 per share handily beat analysts' anticipated 13 cents per share, though revenue of $3.79 billion missed estimates. What's really weighing on the stock, however, is the FanDuel parent's lowered full-year guidance, which it attributed to "unusually customer-friendly sports outcomes," as well as tax adjustments in Illino ...

Core Insights - Penn Entertainment has ended its exclusive U.S. online sports betting partnership with ESPN earlier than expected, effective December 1, 2025, after mutual agreement due to missed market share goals [2][3] Company Overview - Penn Entertainment operates a portfolio of land-based casino and racetrack properties across multiple states, alongside significant digital gaming and sports-betting platforms, with a market capitalization of approximately $2 billion [3] Partnership Details - The partnership with ESPN, initiated in August 2023, was a 10-year deal costing Penn $150 million annually plus stock warrants for the rights to the ESPN BET brand [2] - ESPN contributed nearly 3 million users to Penn's platform, but both parties agreed to amicably wind down the partnership [2][3] Stock Performance - Over the past 52 weeks, PENN stock has declined by 29%, currently trading down 34% from its 52-week high of $23.08 [4] - Year-to-date, the stock is down approximately 23%, with a recent 6.5% decline in just the past five days due to strategic moves like the early termination of the ESPN deal [4] - PENN stock is trading at a discount to industry peers at 0.32 times forward sales [5]

Welcome back to Spotbox. A sports betting player FanDuel partnering with derivatives marketplace CME Group in a predictions market platform that's now set to be released next month. It's going to allow users to bet on financial metrics and sports outcomes even in places where sports gambling is illegal.Now, prediction markets are federally regulated and considered trading platforms, not gambling platforms. the CEO of FanDuel's parent company, telling Jim Kramer that the sports prediction product won't be av ...

Welcome back to Spotbox. A sports betting player FanDuel partnering with derivatives marketplace CME Group in a predictions market platform that's now set to be released next month. It's going to allow users to bet on financial metrics and sports outcomes even in places where sports gambling is illegal.Now, prediction markets are federally regulated and considered trading platforms, not gambling platforms. the CEO of FanDuel's parent company, telling Jim Kramer that the sports prediction product won't be av ...

Cliff Asness told Odd Lots that his hedge fund AQR is exploring a push into the sports betting industry. https://t.co/v9cD9YTsbC ...

Core Viewpoint - Shares of sports-focused firms experienced a decline following a New York State bill aimed at banning sports-related prediction markets for residents [1][4]. Group 1: Stock Performance - Genius Sports saw a nearly 3% drop in after-hours trading, closing at $10.30 [2][3]. - DraftKings shares fell by 0.79%, closing at $31.51 [2][3]. - Flutter Entertainment's stock decreased by 4.26%, with a closing price of $234.45 [2][3]. Group 2: Legislative Impact - The New York State legislation, known as the ORACLE Act, seeks to prohibit various categories of sports-related betting, including wagers on catastrophic events, politics, and individual incidents within larger sporting events [4][5]. - The bill aims to regulate emerging platforms that combine financial trading with gambling mechanics, which have outpaced current oversight [6]. Group 3: Market Context - Kalshi, a federally-regulated prediction market, recently achieved a valuation of $5 billion after raising $300 million [7]. - Polymarket is attempting to re-enter the U.S. market following a $2 billion investment from Intercontinental Exchange Inc. [7]. - The prediction market sector is viewed as part of a "hype cycle," indicating significant interest and potential growth in this area [7].

Flutter Entertainment, parent of the FanDuel sports-betting app, has surrendered its license to operate in Nevada, according to the state’s Gaming Control Board https://t.co/Qunj2KzWLm ...

Now, let's talk about the predictions market, which is a market I can candidly I am fascinated by, but I was always hoping someone would actually have a partner from our world, not just a partner from, say, Vegas. You've got the CME, whom I regard as the foremost arbiter of this kind of activity, as your partner, which to me legitimizes something that I felt, frankly, is a little bit uh that I was a little sheepest to be involved in. >> We we've been operating in this space for a long time, right.We have th ...

Financial Data and Key Metrics Changes - Group revenue increased by 17% year-over-year, while adjusted EBITDA grew by 6% in Q3 2025 [5][19] - The company reported a net loss of $789 million for the quarter, compared to a loss of $114 million in the prior year, primarily due to a non-cash impairment charge of $556 million related to regulatory changes in India [18][19] - Adjusted earnings per share grew by 29%, while loss per share increased to $3.91 from $0.58 in Q3 2024 [18] Business Line Data and Key Metrics Changes - In the US, revenue was up 9%, driven by exceptional iGaming growth of 44%, while sportsbook revenue declined by 5% [18] - International revenue increased by 21% year-over-year, with acquisitions contributing 18 percentage points to this growth [19] - iGaming performance showed strong organic growth of 10%, particularly in Turkey and Italy [12][19] Market Data and Key Metrics Changes - Average monthly players engaging with products exceeded 14 million, contributing to revenue growth [5] - The company maintained a 47% market share in net gaming revenue (NGR) in September, despite competitive pressures [11][30] - The international division's revenue reached $2.4 billion, reflecting a 21% increase, with strong performance in Turkey and Italy [19] Company Strategy and Development Direction - The company is strategically positioning FanDuel to capture emerging prediction markets with the launch of FanDuel Predicts in December [6][17] - The focus remains on state-regulated sports betting and iGaming as the most valuable long-term opportunities in the US [8] - The company plans to invest significantly in FanDuel Predicts, anticipating an incremental EBITDA cost of $40-$50 million in Q4 2025 and $200-$300 million in 2026 [23][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underlying business performance despite a reduction in full-year guidance due to customer-friendly sports results [5][21] - The competitive landscape has seen heightened generosity from competitors, impacting initial NFL season performance, but management remains optimistic about long-term growth [11][30] - The company is closely monitoring the regulatory environment in India and remains engaged with policymakers regarding potential gaming tax increases in the UK [15][16][60] Other Important Information - The company completed share repurchases totaling $225 million in Q3 and plans to continue the program into 2026, with a commitment to return $5 billion over the coming years [20][21] - The integration of recent acquisitions is progressing well, with a focus on delivering synergies and enhancing the iGaming proposition [13][14] Q&A Session Summary Question: Can you elaborate on the planned investment for FanDuel Predicts? - Management expressed excitement about the product and emphasized a disciplined approach to customer acquisition, monitoring CAC to LTV dynamics closely [25][26] Question: How widespread was the competitive generosity seen at the start of the NFL season? - Management noted that while there was heightened generosity, they maintained a disciplined investment posture and were pleased with their market share performance [30][31] Question: What is the outlook for trading in September and into Q4 in the US? - Management reported strong momentum into Q4, with double-digit handle growth and a positive start to the NBA season [30][31] Question: Can you provide insights on the prediction markets and regulatory engagement? - Management highlighted extensive engagement with stakeholders and optimism about accelerating state legalization of sports betting [34][35] Question: How do you view the competitive landscape with new partnerships like ESPN and DraftKings? - Management acknowledged the competitive dynamics but emphasized their strong product offering and successful partnerships, particularly with Amazon [56]