Bipartisan Legislation Boosts Flutter and DraftKings Amid Prediction Market Regulation
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy FLUT?
Source: seekingalpha
- Legislative Impact: California Democrat Adam Schiff and Utah Republican John Curtis are set to introduce legislation aimed at regulating prediction market entities like Polymarket and Kalshi, preventing them from listing contracts for sporting events and casino-style games, which is expected to positively impact the market performance of Flutter Entertainment (FLUT) and DraftKings (DKNG).
- Competition Landscape Shift: If passed, the bill would significantly alter the competitive landscape of the U.S. online gaming market by removing prediction markets as an alternative, potentially allowing FanDuel (FLUT) and DraftKings (DKNG) to capture a more favorable market position and increase their market share.
- Regulatory Status Utilization: Prediction markets have leveraged their regulatory status with the Commodity Futures Trading Commission (CFTC) to bypass state gaming laws, limiting the expansion of FanDuel (FLUT) and DraftKings (DKNG); successful legislation would enable these companies to better control the market.
- Positive Market Reaction: Shares of Flutter Entertainment (FLUT) and DraftKings (DKNG) rose following the legislative news, reflecting investor optimism regarding the potential changes in market competition dynamics and indicating a favorable impact on the businesses of both companies.
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Analyst Views on FLUT
Wall Street analysts forecast FLUT stock price to rise
26 Analyst Rating
23 Buy
3 Hold
0 Sell
Strong Buy
Current: 111.570
Low
228.00
Averages
296.77
High
381.46
Current: 111.570
Low
228.00
Averages
296.77
High
381.46
About FLUT
Flutter Entertainment plc is an online sports betting and iGaming operator. Its segments include the United States (U.S.), United Kingdom and Ireland (UKI), Australia and International. The U.S. segment offers sports betting, casino, DFS and horse racing wagering products to players across various states in the United States, mainly online but with sports betting services also provided through retail outlets and certain online products in the province of Ontario in Canada. The UKI segment offers sports betting (sportsbook), iGaming products and other products through its Sky Betting & Gaming, Paddy Power, Betfair and tombola brands. Its Australia segment offers online sports betting products through its Sportsbet brand. The International segment includes its operations in 100 global markets and offers sports betting, casino, poker, rummy and lottery, mainly online. This segment includes Sisal, PokerStars, Snai, Betfair International, Adjarabet, MaxBet, Betnacional, and other brands.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Bipartisan Legislation Boosts Flutter and DraftKings Amid Prediction Market Regulation
- Legislative Impact: California Democrat Adam Schiff and Utah Republican John Curtis are set to introduce legislation aimed at regulating prediction market entities like Polymarket and Kalshi, preventing them from listing contracts for sporting events and casino-style games, which is expected to positively impact the market performance of Flutter Entertainment (FLUT) and DraftKings (DKNG).
- Competition Landscape Shift: If passed, the bill would significantly alter the competitive landscape of the U.S. online gaming market by removing prediction markets as an alternative, potentially allowing FanDuel (FLUT) and DraftKings (DKNG) to capture a more favorable market position and increase their market share.
- Regulatory Status Utilization: Prediction markets have leveraged their regulatory status with the Commodity Futures Trading Commission (CFTC) to bypass state gaming laws, limiting the expansion of FanDuel (FLUT) and DraftKings (DKNG); successful legislation would enable these companies to better control the market.
- Positive Market Reaction: Shares of Flutter Entertainment (FLUT) and DraftKings (DKNG) rose following the legislative news, reflecting investor optimism regarding the potential changes in market competition dynamics and indicating a favorable impact on the businesses of both companies.
See More
Genius Sports: The Winner in Prediction Markets
- Market Potential: Genius Sports, dubbed the 'operating system of modern sport', provides essential data and analytics for sports wagering and prediction markets, and despite a 60% drop in stock price over the past year, its business model shows strong growth potential as prediction markets rise.
- Profitability Improvement: The company has achieved profitability on an adjusted EBITDA basis, and as incremental revenue growth occurs, the bottom line is expected to be significantly impacted, especially with its adtech business poised to become a crucial segment of overall operations.
- Acquisition Impact: Genius announced a $900 million acquisition of sports media company Legend, which is expected to boost adjusted EBITDA from $190 million to $320 million and increase operating margin from 23% to 30%, greatly enhancing the company's profitability.
- Future Earnings Outlook: Analysts forecast earnings per share to reach $0.28 by 2027 and $0.60 by 2028, and with the stock currently trading near $4.50, there is substantial rebound potential for Genius Sports, making it an attractive long-term investment opportunity.
See More
Genius Sports Poised for a Turnaround Amid Market Trends
- Market Trend Analysis: Despite Genius Sports' shares dropping over 60% in the past year, the rise of prediction markets could signal a turning point for profitability, especially with the upcoming $900 million acquisition of Legend.
- Acquisition Impact: The acquisition is expected to boost Genius Sports' adjusted EBITDA from $190 million to $320 million and increase operating margins from 23% to 30%, significantly enhancing financial performance.
- Earnings Expectations: Analysts forecast earnings per share to reach $0.28 in 2027 and $0.60 in 2028, indicating strong growth potential, particularly with the stock currently trading near $4.50.
- Industry Position: As a
See More
MoffettNathanson Downgrades DraftKings and Flutter Ratings to Neutral
- Rating Downgrade: MoffettNathanson has downgraded DraftKings and Flutter Entertainment from Buy to Neutral, citing that while both companies have attractive valuations based on conservative long-term forecasts, a significant overhang exists due to the lack of regulatory clarity impacting these sports betting stocks.
- Regulatory Uncertainty: The U.S. prediction market is in a rapidly evolving yet unsettled regulatory environment, with the CFTC moving towards a formal framework that includes a March 12 advance notice of proposed rulemaking and staff advisory, while also withdrawing an earlier proposal that could have tightened limits on sports and politics-related contracts.
- Increased Market Pressure: State regulators and litigants are aggressively challenging the industry, particularly where contracts overlap with gambling or sports betting, resulting in a patchwork of federal oversight, active rulemaking, and ongoing state-level legal pressures that complicate the market landscape.
- Weak Stock Performance: Both DraftKings and Flutter have seen their stock prices decline by over 30% since the beginning of the year, as trading volumes in prediction markets continue to exceed expectations during major sporting events, indicating market concerns about future developments.
See More
US Stocks Close Higher with Chipmakers Rallying
- Market Recovery: On Thursday, the S&P 500 rose by 0.26% and the Nasdaq 100 by 0.49%, reaching new highs, indicating a strong rebound after early losses and reflecting investor confidence in economic recovery.
- Chip Sector Boost: Taiwan Semiconductor Manufacturing Co raised its 2026 revenue forecast, highlighting strong AI demand, which propelled chipmakers' stock prices, particularly benefiting major suppliers to Nvidia and Apple, further enhancing market optimism.
- Oil Price Impact: Despite the stock market gains, crude oil prices surged over 3%, raising concerns about the Middle East situation and limiting the market's upward momentum, illustrating the potential impact of energy prices on the overall economy.
- Mixed Economic Data: Initial jobless claims fell to 207,000, exceeding expectations and indicating labor market strength, but unexpected declines in manufacturing production reflect economic uncertainty, which could influence future monetary policy.
See More
US Stocks Dip Slightly as Chipmakers Weigh on Market
- Market Performance: The S&P 500 index fell by 0.15%, the Dow Jones Industrial Average decreased by 0.06%, and the Nasdaq 100 dropped by 0.21%, indicating a slight market pullback after reaching new highs, particularly pressured by weakness in chipmakers.
- Economic Data: Initial jobless claims in the US fell by 11,000 to 207,000, indicating a stronger labor market than the expected 213,000; additionally, the Philadelphia Fed business outlook unexpectedly rose by 8.6 to a 15-month high of 26.7, reflecting potential economic recovery.
- Oil Price Fluctuations: WTI crude oil prices increased by over 1% as the US naval blockade of the Strait of Hormuz enters its fourth day, which could exacerbate global oil and fuel shortages, impacting future energy market stability.
- Earnings Season: Q1 earnings for the S&P 500 are projected to rise by 12% year-over-year, but excluding the technology sector, the earnings growth is only 3%, the lowest in two years, indicating a cautious market outlook on profit growth.
See More
Bipartisan Legislation Boosts Flutter and DraftKings Amid Prediction Market Regulation
- Legislative Impact: California Democrat Adam Schiff and Utah Republican John Curtis are set to introduce legislation aimed at regulating prediction market entities like Polymarket and Kalshi, preventing them from listing contracts for sporting events and casino-style games, which is expected to positively impact the market performance of Flutter Entertainment (FLUT) and DraftKings (DKNG).
- Competition Landscape Shift: If passed, the bill would significantly alter the competitive landscape of the U.S. online gaming market by removing prediction markets as an alternative, potentially allowing FanDuel (FLUT) and DraftKings (DKNG) to capture a more favorable market position and increase their market share.
- Regulatory Status Utilization: Prediction markets have leveraged their regulatory status with the Commodity Futures Trading Commission (CFTC) to bypass state gaming laws, limiting the expansion of FanDuel (FLUT) and DraftKings (DKNG); successful legislation would enable these companies to better control the market.
- Positive Market Reaction: Shares of Flutter Entertainment (FLUT) and DraftKings (DKNG) rose following the legislative news, reflecting investor optimism regarding the potential changes in market competition dynamics and indicating a favorable impact on the businesses of both companies.
See More
Genius Sports: The Winner in Prediction Markets
- Market Potential: Genius Sports, dubbed the 'operating system of modern sport', provides essential data and analytics for sports wagering and prediction markets, and despite a 60% drop in stock price over the past year, its business model shows strong growth potential as prediction markets rise.
- Profitability Improvement: The company has achieved profitability on an adjusted EBITDA basis, and as incremental revenue growth occurs, the bottom line is expected to be significantly impacted, especially with its adtech business poised to become a crucial segment of overall operations.
- Acquisition Impact: Genius announced a $900 million acquisition of sports media company Legend, which is expected to boost adjusted EBITDA from $190 million to $320 million and increase operating margin from 23% to 30%, greatly enhancing the company's profitability.
- Future Earnings Outlook: Analysts forecast earnings per share to reach $0.28 by 2027 and $0.60 by 2028, and with the stock currently trading near $4.50, there is substantial rebound potential for Genius Sports, making it an attractive long-term investment opportunity.
See More
Genius Sports Poised for a Turnaround Amid Market Trends
- Market Trend Analysis: Despite Genius Sports' shares dropping over 60% in the past year, the rise of prediction markets could signal a turning point for profitability, especially with the upcoming $900 million acquisition of Legend.
- Acquisition Impact: The acquisition is expected to boost Genius Sports' adjusted EBITDA from $190 million to $320 million and increase operating margins from 23% to 30%, significantly enhancing financial performance.
- Earnings Expectations: Analysts forecast earnings per share to reach $0.28 in 2027 and $0.60 in 2028, indicating strong growth potential, particularly with the stock currently trading near $4.50.
- Industry Position: As a
See More
MoffettNathanson Downgrades DraftKings and Flutter Ratings to Neutral
- Rating Downgrade: MoffettNathanson has downgraded DraftKings and Flutter Entertainment from Buy to Neutral, citing that while both companies have attractive valuations based on conservative long-term forecasts, a significant overhang exists due to the lack of regulatory clarity impacting these sports betting stocks.
- Regulatory Uncertainty: The U.S. prediction market is in a rapidly evolving yet unsettled regulatory environment, with the CFTC moving towards a formal framework that includes a March 12 advance notice of proposed rulemaking and staff advisory, while also withdrawing an earlier proposal that could have tightened limits on sports and politics-related contracts.
- Increased Market Pressure: State regulators and litigants are aggressively challenging the industry, particularly where contracts overlap with gambling or sports betting, resulting in a patchwork of federal oversight, active rulemaking, and ongoing state-level legal pressures that complicate the market landscape.
- Weak Stock Performance: Both DraftKings and Flutter have seen their stock prices decline by over 30% since the beginning of the year, as trading volumes in prediction markets continue to exceed expectations during major sporting events, indicating market concerns about future developments.
See More
US Stocks Close Higher with Chipmakers Rallying
- Market Recovery: On Thursday, the S&P 500 rose by 0.26% and the Nasdaq 100 by 0.49%, reaching new highs, indicating a strong rebound after early losses and reflecting investor confidence in economic recovery.
- Chip Sector Boost: Taiwan Semiconductor Manufacturing Co raised its 2026 revenue forecast, highlighting strong AI demand, which propelled chipmakers' stock prices, particularly benefiting major suppliers to Nvidia and Apple, further enhancing market optimism.
- Oil Price Impact: Despite the stock market gains, crude oil prices surged over 3%, raising concerns about the Middle East situation and limiting the market's upward momentum, illustrating the potential impact of energy prices on the overall economy.
- Mixed Economic Data: Initial jobless claims fell to 207,000, exceeding expectations and indicating labor market strength, but unexpected declines in manufacturing production reflect economic uncertainty, which could influence future monetary policy.
See More
US Stocks Dip Slightly as Chipmakers Weigh on Market
- Market Performance: The S&P 500 index fell by 0.15%, the Dow Jones Industrial Average decreased by 0.06%, and the Nasdaq 100 dropped by 0.21%, indicating a slight market pullback after reaching new highs, particularly pressured by weakness in chipmakers.
- Economic Data: Initial jobless claims in the US fell by 11,000 to 207,000, indicating a stronger labor market than the expected 213,000; additionally, the Philadelphia Fed business outlook unexpectedly rose by 8.6 to a 15-month high of 26.7, reflecting potential economic recovery.
- Oil Price Fluctuations: WTI crude oil prices increased by over 1% as the US naval blockade of the Strait of Hormuz enters its fourth day, which could exacerbate global oil and fuel shortages, impacting future energy market stability.
- Earnings Season: Q1 earnings for the S&P 500 are projected to rise by 12% year-over-year, but excluding the technology sector, the earnings growth is only 3%, the lowest in two years, indicating a cautious market outlook on profit growth.
See More
