Competition Between Sports Betting and Prediction Markets
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2d ago
0mins
Source: Benzinga
- Market Dynamics: Roundhill Investments CEO Dave Mazza highlights that sports betting companies like DraftKings and Flutter are launching prediction-style products to adapt to market changes, indicating industry evolution rather than displacement.
- Regulatory Impact: The regulation of prediction markets has become a key battleground, with some states attempting to restrict Kalshi and Polymarket's operations while legal online sportsbooks continue to operate, showcasing market complexity.
- Profitability Focus: Mazza notes that 2026 is expected to be a consolidation year, with operators focusing on profitability and states interested in tax revenue, likely leading to more partnership reshuffling and selective M&A.
- Market Outlook: Despite DraftKings and Flutter stocks dropping 26% and 34% over the past 52 weeks, respectively, Mazza believes that innovative disruption indicates the long-term potential of the sports betting and gambling markets, with future regulation being a key factor.
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Analyst Views on DKNG
Wall Street analysts forecast DKNG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DKNG is 43.76 USD with a low forecast of 30.00 USD and a high forecast of 63.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
30 Analyst Rating
23 Buy
7 Hold
0 Sell
Strong Buy
Current: 30.120
Low
30.00
Averages
43.76
High
63.00
Current: 30.120
Low
30.00
Averages
43.76
High
63.00
About DKNG
DraftKings Inc. is a digital sports entertainment and gaming company. It provides users with online and retail sports betting (together, Sportsbook), online casino (iGaming) and daily fantasy sports product offerings, as well as digital lottery courier, media, and other product offerings. Sportsbook is live with mobile and/or retail sports betting operations pursuant to regulations in 28 states, Washington, D.C., and in Ontario, Canada. It operates iGaming pursuant to regulations in five states and in Ontario, Canada under its DraftKings brand and pursuant to regulations in four states under its Golden Nugget Online Gaming brand. It owns Jackpocket, a digital lottery courier app in the United States. It is both an official daily fantasy and sports betting partner of the NFL, NHL, PGA TOUR, WNBA and UFC, as well as an official daily fantasy partner of NASCAR, an official sports betting partner of the NBA. It also owns and operates DraftKings Network, a multi-platform content ecosystem.
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.
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