New report forecasts prediction markets may reach a trillion dollars in trading volume by the decade's end.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 17 2025
0mins
Source: CNBC
Growth Potential: Prediction markets could reach a trillion dollars in annual trading volume by the end of the decade, driven primarily by consumer demand and the sports sector, which is expected to account for 44% of this volume.
Market Dynamics: Unlike traditional sportsbooks, prediction markets count both sides of a trade as volume, complicating comparisons with sports betting; however, they could support a handle similar to 60%-80% of the current online sports betting market.
Emerging Platforms: Companies like Robinhood, Fanatics, and DraftKings are launching prediction market features, indicating a shift in the industry as traditional sportsbooks recognize the potential disruption from these new platforms.
Convergence of Investing and Gambling: There is a growing trend where gambling is becoming more like investing, with both sectors increasingly overlapping as prediction markets mature and attract institutional interest.
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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.
U.S. Super Bowl Betting Volume Forecasted at $1.75B
- Volume Growth: U.S. Super Bowl 60 is projected to see $1.75 billion in legal betting volume, reflecting over a 10% increase from last year, primarily driven by Missouri's recent legalization, indicating strong market recovery potential.
- Matchup Appeal: The rematch between the Seattle Seahawks and New England Patriots is expected to draw significant betting interest, particularly due to the strong fan bases of both teams, which will further enhance market activity.
- Prediction Market Expansion: Although the Super Bowl will take place in California, where sports betting remains illegal, the growth of prediction market platforms offers bettors more ways to participate, increasing market diversity and attractiveness.
- Market Opportunity: Analysts highlight that Missouri's legalization provides a crucial growth opportunity for the regulated sports betting market, making Super Bowl weekend the single largest betting opportunity of the year, further solidifying record levels in the U.S. market.
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CFTC Announces New Rules for Prediction Markets
- Major Policy Shift: CFTC Chairman Michael S. Selig announced the drafting of 'clear rules' and the withdrawal of proposals prohibiting sports and political contracts, aiming to eliminate market uncertainty and support lawful innovation.
- Clarification of Rules: Selig noted that the existing framework has proven difficult to apply, and the CFTC will establish 'clear standards' to improve the management of event contracts, ensuring the legal rights of market participants.
- Legal Scrutiny Context: Amid increased legal scrutiny from state regulators on prediction markets, Coinbase has filed lawsuits against Michigan, Illinois, and Connecticut, seeking to confirm the CFTC as the sole regulator of these markets.
- Market Reaction Mixed: Despite the potential positive impact of the CFTC's new rules, stocks of sports-related companies like Genius Sports did not rally, while shares of DraftKings and Flutter Entertainment showed mixed signals, indicating cautious market sentiment.
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