DUBLIN, Feb 26 (Reuters) - FanDuel-owner Flutter forecast modest profit growth for 2026 far below analyst expectations due to challenges in the betting giant's main U.S. market compounded by its misfiring attempts to win customers over with promotions and bonuses.The world's largest online betting company reported a 21% jump in 2025 core profit on Thursday but expected growth of just 4% this year to $2.97 billion, significantly below the $3.5 billion expected by analysts polled by LSEG SmartEstimate. Sign u ...

Toronto, Ontario--(Newsfile Corp. - February 23, 2026) - NorthStar Gaming Holdings Inc. (TSXV: BET) (OTCQB: NSBBF) ("NorthStar" or the "Company") today provided an update on its strategic priorities for 2026, focused on disciplined execution, effective capital allocation, and improving the Company's profitability profile. All dollar figures are quoted in Canadian dollars.The Company's core strategy remains focused on growing and enhancing the NorthStar Bets online betting platform, which is known for its u ...

Core Insights - Prediction markets experienced significant growth in 2025, with trading volumes reaching $63.5 billion, a fourfold increase from $15.8 billion in 2024, driven by platforms like Polymarket and Kalshi [1] - DraftKings' stock has declined over the past year, losing more than half its value, which may be related to the rise of prediction markets [2] - DraftKings reported record Q4 2025 revenue of $1.989 billion, a 43% increase from $1.393 billion in the previous year, although it slightly missed the consensus estimate of $1.990 billion [3][5] Financial Performance - The number of monthly unique payers remained stable at 4.8 million, with average revenue per payer increasing by 43% to $139 [4] - Adjusted EBITDA reached $343 million, four times the prior-year level, with margins expanding over 1,000 basis points to 17% [5] - Net income turned positive at $136.4 million, reversing a loss of $134.9 million, with diluted EPS at $0.25 and adjusted earnings at $0.36 per share, below the $0.50 estimate but up from $0.14 a year ago [5] Future Guidance - DraftKings' guidance for 2026 anticipates revenue between $6.5 billion and $6.9 billion, alongside adjusted EBITDA ranging from $700 million to $900 million, indicating a potential deceleration in growth [7] - The guidance excludes revenue contributions from DraftKings Predictions, suggesting a conservative management approach as the company ramps up this new segment [8] Market Dynamics - Management indicated that rival prediction markets had only a slight impact on January sportsbook handle, primarily affecting low-margin customers [9] - The broader prediction market category could expand to $10 billion, presenting DraftKings with an opportunity to capture market share through its established infrastructure [10] - Sports betting remains DraftKings' core business, with total potential payouts across open wagers in 2025 estimated at $2.5 trillion [11] Strategic Initiatives - Customer acquisition and retention have improved, with plans to invest in Predictions to attract more users, leveraging data analytics and personalization tools [13] - DraftKings' management views heavy investment in Predictions as essential to mitigate risks associated with inaction, aligning closely with the company's betting expertise [15] - The robust performance in 2025 and ambitious growth strategies position DraftKings as a compelling buy opportunity, especially for investors interested in the convergence of betting and predictive trading [16]

DraftKings, the online betting company, issued a 2026 forecast for sales and profit that fell short of Wall Street estimates, sending the stock tumbling in extended trading. https://t.co/SzlSBU7u9e ...

Group 1 - Nevada has filed a lawsuit against Coinbase, alleging that some of its events contracts violate state law, leading to a decline in Coinbase's stock price [1] - Following the lawsuit, DraftKings and FanDuel-parent Flutter Entertainment saw their stock prices increase [1] - Cathie Wood's ARK Invest purchased Coinbase shares after the stock dip and sold approximately $21 million worth of DraftKings shares [1] Group 2 - Bitcoin has fallen to a 16-month low, with Stifel warning of a potential drop to $38,000 [1] - The cryptocurrency market is experiencing a downturn, referred to as a "crypto winter," which is impacting Coinbase's stock performance [1] - Analysts have noted that DraftKings is benefiting from positive comments and new data-center plays, leading to a target price hike [1]

Core Insights - The article emphasizes the potential of undervalued ETFs like Pacer Industrial Real Estate ETF, VanEck Gaming ETF, and Xtrackers S&P Dividend Aristocrats Screened ETF to enhance investment returns in a challenging market environment [2][3] Pacer Industrial Real Estate ETF (INDS) - Pacer Industrial Real Estate ETF has declined over 31% from its peak in 2021 and has been trading sideways in 2023 due to high interest rates affecting REITs [4] - Despite challenges, REITs have managed to maintain and grow dividends, learning from past market downturns [5] - The ETF focuses on industrial real estate, benefiting from long-term trends such as online shopping growth, with an expected upside potential of 50-60% in the next two years and a current dividend yield of 3.5% [6] VanEck Gaming ETF (BJK) - VanEck Gaming ETF has fluctuated between $25 and $50 for over a decade but is expected to rise above $50 due to favorable market conditions [7] - The ETF tracks the MVIS Global Gaming Index, which is increasingly shifting towards online betting as more states legalize sports wagering [8] Xtrackers S&P Dividend Aristocrats Screened ETF (SNPD) - Xtrackers Dividend Aristocrats ETF charges a low expense ratio of 0.15% and includes stocks with over 20 years of consistent dividend growth [9]

Core Insights - A trader discusses his betting activities on a Discord channel, highlighting how his successful wagers contribute to covering living expenses such as rent [1] Group 1 - The trader's engagement in online betting reflects a growing trend among individuals using social media platforms for sharing investment strategies and outcomes [1] - The discussion on Discord indicates a community-driven approach to trading, where participants exchange insights and experiences [1] - The financial implications of the trader's wins suggest a potential shift in how personal finance and investment strategies are communicated and executed in the digital age [1]

Group 1 - Shares of online betting companies DraftKings and Flutter Entertainment (parent company of FanDuel) fell after receiving price target cuts from Stifel, with DraftKings' target reduced to 44 [1] - Competitor Rush Street Interactive initially rallied in the market but eventually reversed to a loss [1] - Analysts remain optimistic about the digital gaming industry, expecting strong profit growth this year [1] Group 2 - DraftKings has formally launched prediction markets, which may impact its revenue margins [1] - The prediction market strategy of FanDuel is aimed at competing with rivals Polymarket and Kalshi [1] - The downgrade of DraftKings and Flutter is attributed to the potential margin erosion from prediction markets [1]

Core Insights - The rise of prediction markets is seen as an opportunity rather than a threat to traditional sports betting companies like DraftKings and Flutter, with significant investments planned in this area [2][3] - The total addressable market (TAM) for prediction markets is believed to be larger than that of online sports betting, as it includes demographics and regions where sports betting is not yet regulated [4] Investment and Market Trends - Flutter plans to invest $250 million in prediction markets by 2026, while DraftKings is expected to invest an additional $200 million [3] - Recent trends in New York's betting handle have heightened investor interest in prediction markets [5] Regulatory Environment - The legalization of sports betting is shifting from state-level decisions to a more national perspective, with the focus now on tax revenue generation [8] - The integrity of prediction markets is a concern, especially in light of recent scandals involving game-fixing among college students [6][7] Competitive Landscape - Companies like Sport Radar and Genius Sports are positioned to benefit from the investments made by major players in the prediction market space, acting as data providers [9]

Core Insights - The gaming sector is starting 2026 with a focus on online sports betting, despite softer trends in Las Vegas, regional casinos, and Asia affecting near-term expectations [1] Group 1: Online Betting Trends - BofA updated forecasts for Las Vegas, regional casinos, and Macau, while reviewing recent online betting trends and earnings for DraftKings and Flutter Entertainment [2] - Gaming stocks declined approximately 9% in the fourth quarter and into January, with U.S. operators down about 4%, Macau names off 13%, and digital gaming stocks falling 23% [3] - DraftKings is positioned for a strong fourth-quarter performance, while FanDuel faces more pressure due to weaker betting handle and concerns around promotional intensity [4] Group 2: Las Vegas Market Analysis - Fourth-quarter estimates for Las Vegas remain modestly below Street expectations, with BofA's forecast about 1% below consensus for the Strip and roughly 2% below for MGM Resorts [5] - Las Vegas locals are outperforming, with BofA's estimates running above consensus [6] Group 3: Regional and Asian Markets - Macau's fourth-quarter EBITDA is expected to align with Street expectations, driven by strength at MGM China, with BofA slightly above consensus [7] - Marina Bay Sands in Singapore may modestly outperform expectations, supported by events like Formula One and improving hotel metrics [8] - Regional casinos show strength led by MGM Resorts and Boyd Gaming, but potential weakness is noted for Penn Entertainment due to increased competition in Louisiana [8]