Gaming Author Vatsala Gaur Mar 23, 2026, 17:37 PM Shares of major gambling companies rose on Monday after US senators introduced legislation aimed at restricting sports betting through prediction markets, a move investors see as supportive of traditional sportsbooks. Flutter Entertainment, the parent of FanDuel, climbed 5%, while DraftKings gained 2.7%. Both stocks have faced steep declines this year, down roughly 50% and 32% respectively, amid concerns that emerging prediction markets could erode their dom ...

Core Viewpoint - October was a challenging month for DraftKings, with shares dropping 12.32% to close at $30.59, marking the lowest end-of-day price since August 2024 [1] Group 1: Market Dynamics - The decline in DraftKings' stock can be attributed to increased volume in prediction markets, which investors perceived as competitive threats to DraftKings' offerings [2] - Favorable NFL outcomes for bettors during September negatively impacted DraftKings' margins and profitability, leading analysts to lower quarterly estimates [3] Group 2: Earnings Outlook - The struggles experienced in the NFL season are likely already reflected in DraftKings' stock price, suggesting that the upcoming third-quarter earnings report could provide a basis for a potential rebound [4] - Historically, DraftKings has a pattern of raising guidance, but it has also revised forecasts downward due to favorable outcomes for bettors [5] Group 3: Future Expectations - There is pressure on DraftKings and similar companies to demonstrate improved performance in the current quarter, particularly regarding football betting [6] - The company may have an opportunity to reassure investors by reporting that bettors performed poorly in October and by adopting a conservative approach to promotional spending with the upcoming launch of online sports wagering in Missouri [9]