Roundhill Files for Six Political Prediction Market ETFs
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Should l Buy DKNG?
Source: Benzinga
- ETF Innovation: Roundhill Investments has filed for six political prediction market ETFs, including Democratic and Republican presidential, Senate, and House ETFs, aimed at allowing investors to speculate on the outcomes of the 2026 and 2028 elections, potentially driving further growth in the sports betting sector.
- Risk and Reward: These ETFs will invest in event contracts regulated under the Commodity Exchange Act, with the Democratic President ETF losing nearly all its value if it fails to win in 2028, indicating that investors must carefully assess the risks and potential rewards involved.
- Market Dynamics: Roundhill CEO Dave Mazza noted that while prediction markets are on the rise, sportsbooks still maintain an edge in product depth, user experience, and media reach, suggesting that the two can coexist rather than being a zero-sum game.
- Regulatory Impact: The ETF filings have not yet received SEC approval, and future regulatory policies will determine the growth rate of prediction markets, with Roundhill believing that innovative disruption will provide momentum for the long-term development of the sports betting and gambling markets.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy DKNG?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on DKNG
Wall Street analysts forecast DKNG stock price to rise
29 Analyst Rating
23 Buy
6 Hold
0 Sell
Strong Buy
Current: 22.590
Low
30.00
Averages
42.69
High
53.00
Current: 22.590
Low
30.00
Averages
42.69
High
53.00
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.
Caesars Shares Surge 15% Following Earnings Report as CEO Declares 'No Crisis' in Las Vegas
Caesars Entertainment Earnings: Caesars Entertainment's stock experienced a significant increase following the release of strong earnings reports.
Investor Confidence: The company took steps to alleviate investor concerns regarding the potential decline of Las Vegas in the face of growing online gambling and prediction markets.
See More
Roundhill Files for Six Political Prediction Market ETFs
- ETF Innovation: Roundhill Investments has filed for six political prediction market ETFs, including Democratic and Republican presidential, Senate, and House ETFs, aimed at allowing investors to speculate on the outcomes of the 2026 and 2028 elections, potentially driving further growth in the sports betting sector.
- Risk and Reward: These ETFs will invest in event contracts regulated under the Commodity Exchange Act, with the Democratic President ETF losing nearly all its value if it fails to win in 2028, indicating that investors must carefully assess the risks and potential rewards involved.
- Market Dynamics: Roundhill CEO Dave Mazza noted that while prediction markets are on the rise, sportsbooks still maintain an edge in product depth, user experience, and media reach, suggesting that the two can coexist rather than being a zero-sum game.
- Regulatory Impact: The ETF filings have not yet received SEC approval, and future regulatory policies will determine the growth rate of prediction markets, with Roundhill believing that innovative disruption will provide momentum for the long-term development of the sports betting and gambling markets.
See More
CFTC Chairman Responds to State Litigation Challenges
- Regulatory Challenges: CFTC Chairman Mike Selig stated that American prediction markets have faced an 'onslaught of state-led litigation' over the past year, posing a threat to industry stability and potentially undermining market confidence.
- Legal Support Action: The CFTC has filed a friend-of-the-court brief in the Ninth U.S. Circuit Court of Appeals supporting Crypto.com, aiming to defend its exclusive jurisdiction over prediction markets, indicating a strong legal stance.
- Industry Function Defense: Selig emphasized that prediction markets provide useful functions in society, helping everyday Americans hedge against commercial risks such as temperature fluctuations and energy price spikes, highlighting their significance in the economy.
- Market Growth Potential: Despite legal challenges, prediction markets are booming, with Kalshi experiencing a 2,700% year-over-year surge in Super Bowl trading volume, exceeding $1 billion in wagers, showcasing the market's immense potential and appeal.
See More
Ten Large-Cap Stocks with Worst Performance Last Week
- Astera Labs: Astera Labs (NASDAQ:ALAB) saw a significant decline of 23.74% this week after reporting fourth-quarter financial results that fell short of market expectations, raising investor concerns about its future profitability.
- Medpace Holdings: Medpace Holdings (NASDAQ:MEDP) experienced a slump of 20.69% this week, driven by disappointing fourth-quarter results and multiple analyst firms lowering their price targets, which intensified negative sentiment around the stock.
- Zillow Group: Zillow Group (NASDAQ:Z) decreased by 20.89% this week due to mixed fourth-quarter financial results that failed to boost investor confidence, leading to downward pressure on its stock price.
- AST SpaceMobile: AST SpaceMobile (NASDAQ:ASTS) fell 17.9% this week after announcing a $1 billion convertible senior notes offering, which was met with negative market reactions due to concerns over the implications of its financing plans.
See More
Tri Pointe to Be Acquired by Sumitomo Forestry
- Acquisition Agreement: Tri Pointe has entered into a definitive agreement with Sumitomo Forestry, which will acquire the company for $47.00 per share in cash, valuing the transaction at approximately $4.5 billion, indicating a rebound in market confidence in the real estate sector.
- Stock Price Surge: Following the acquisition announcement, Tri Pointe's stock surged by 26%, reflecting positive investor sentiment towards the deal and optimism regarding a recovery in the real estate market.
- Delivery Outlook: Tri Pointe expects to deliver between 1,200 and 1,400 homes in Q4, demonstrating stable delivery capabilities in the current market environment, which enhances its attractiveness to investors.
- Analyst Rating Adjustments: RBC Capital lowered Tri Pointe's price target from $37 to $31, yet Citizens initiated coverage with an Outperform rating, indicating divergent views on the company's future performance in the market.
See More
DraftKings Shares Drop on Tepid Growth Forecast
- Significant Revenue Growth: DraftKings reported a 43% year-over-year increase in fourth-quarter revenue, reaching $2 billion, showcasing its strong performance in the digital sports entertainment and gaming sector, despite a stock price drop due to weak future forecasts.
- Stable User Metrics: While DraftKings' average monthly unique paying customers remained flat at 4.8 million, the average revenue per customer increased by 43% to $139, indicating success in enhancing customer value.
- Improved Profitability: The company generated a net income of $136 million, a notable turnaround from a loss of $135 million in the prior-year quarter, while adjusted EBITDA soared by 284% to $343 million, reflecting improved operational efficiency.
- Lackluster Future Guidance: DraftKings expects full-year revenue for 2026 to be between $6.5 billion and $6.9 billion, falling short of Wall Street's $7.3 billion expectation, raising investor concerns about intensifying competition, although the CEO views prediction markets as a “massive, incremental opportunity.”
See More
Caesars Shares Surge 15% Following Earnings Report as CEO Declares 'No Crisis' in Las Vegas
Caesars Entertainment Earnings: Caesars Entertainment's stock experienced a significant increase following the release of strong earnings reports.
Investor Confidence: The company took steps to alleviate investor concerns regarding the potential decline of Las Vegas in the face of growing online gambling and prediction markets.
See More
Roundhill Files for Six Political Prediction Market ETFs
- ETF Innovation: Roundhill Investments has filed for six political prediction market ETFs, including Democratic and Republican presidential, Senate, and House ETFs, aimed at allowing investors to speculate on the outcomes of the 2026 and 2028 elections, potentially driving further growth in the sports betting sector.
- Risk and Reward: These ETFs will invest in event contracts regulated under the Commodity Exchange Act, with the Democratic President ETF losing nearly all its value if it fails to win in 2028, indicating that investors must carefully assess the risks and potential rewards involved.
- Market Dynamics: Roundhill CEO Dave Mazza noted that while prediction markets are on the rise, sportsbooks still maintain an edge in product depth, user experience, and media reach, suggesting that the two can coexist rather than being a zero-sum game.
- Regulatory Impact: The ETF filings have not yet received SEC approval, and future regulatory policies will determine the growth rate of prediction markets, with Roundhill believing that innovative disruption will provide momentum for the long-term development of the sports betting and gambling markets.
See More
CFTC Chairman Responds to State Litigation Challenges
- Regulatory Challenges: CFTC Chairman Mike Selig stated that American prediction markets have faced an 'onslaught of state-led litigation' over the past year, posing a threat to industry stability and potentially undermining market confidence.
- Legal Support Action: The CFTC has filed a friend-of-the-court brief in the Ninth U.S. Circuit Court of Appeals supporting Crypto.com, aiming to defend its exclusive jurisdiction over prediction markets, indicating a strong legal stance.
- Industry Function Defense: Selig emphasized that prediction markets provide useful functions in society, helping everyday Americans hedge against commercial risks such as temperature fluctuations and energy price spikes, highlighting their significance in the economy.
- Market Growth Potential: Despite legal challenges, prediction markets are booming, with Kalshi experiencing a 2,700% year-over-year surge in Super Bowl trading volume, exceeding $1 billion in wagers, showcasing the market's immense potential and appeal.
See More
Ten Large-Cap Stocks with Worst Performance Last Week
- Astera Labs: Astera Labs (NASDAQ:ALAB) saw a significant decline of 23.74% this week after reporting fourth-quarter financial results that fell short of market expectations, raising investor concerns about its future profitability.
- Medpace Holdings: Medpace Holdings (NASDAQ:MEDP) experienced a slump of 20.69% this week, driven by disappointing fourth-quarter results and multiple analyst firms lowering their price targets, which intensified negative sentiment around the stock.
- Zillow Group: Zillow Group (NASDAQ:Z) decreased by 20.89% this week due to mixed fourth-quarter financial results that failed to boost investor confidence, leading to downward pressure on its stock price.
- AST SpaceMobile: AST SpaceMobile (NASDAQ:ASTS) fell 17.9% this week after announcing a $1 billion convertible senior notes offering, which was met with negative market reactions due to concerns over the implications of its financing plans.
See More
Tri Pointe to Be Acquired by Sumitomo Forestry
- Acquisition Agreement: Tri Pointe has entered into a definitive agreement with Sumitomo Forestry, which will acquire the company for $47.00 per share in cash, valuing the transaction at approximately $4.5 billion, indicating a rebound in market confidence in the real estate sector.
- Stock Price Surge: Following the acquisition announcement, Tri Pointe's stock surged by 26%, reflecting positive investor sentiment towards the deal and optimism regarding a recovery in the real estate market.
- Delivery Outlook: Tri Pointe expects to deliver between 1,200 and 1,400 homes in Q4, demonstrating stable delivery capabilities in the current market environment, which enhances its attractiveness to investors.
- Analyst Rating Adjustments: RBC Capital lowered Tri Pointe's price target from $37 to $31, yet Citizens initiated coverage with an Outperform rating, indicating divergent views on the company's future performance in the market.
See More
DraftKings Shares Drop on Tepid Growth Forecast
- Significant Revenue Growth: DraftKings reported a 43% year-over-year increase in fourth-quarter revenue, reaching $2 billion, showcasing its strong performance in the digital sports entertainment and gaming sector, despite a stock price drop due to weak future forecasts.
- Stable User Metrics: While DraftKings' average monthly unique paying customers remained flat at 4.8 million, the average revenue per customer increased by 43% to $139, indicating success in enhancing customer value.
- Improved Profitability: The company generated a net income of $136 million, a notable turnaround from a loss of $135 million in the prior-year quarter, while adjusted EBITDA soared by 284% to $343 million, reflecting improved operational efficiency.
- Lackluster Future Guidance: DraftKings expects full-year revenue for 2026 to be between $6.5 billion and $6.9 billion, falling short of Wall Street's $7.3 billion expectation, raising investor concerns about intensifying competition, although the CEO views prediction markets as a “massive, incremental opportunity.”
See More
