Source: Fortune.com
Summary
Flutter Entertainment’s stock has been on an eight-week skid, the longest in 23 years, and its main competitor DraftKings is trading at its lowest levels since 2023. The rise of prediction markets like Kalshi is partly to blame, with Kalshi expected to attract $630 million in bets for the Super Bowl, accounting for 80% of the year-over-year growth in wagering activity. Wall Street analysts have lowered their earnings and revenue expectations for both companies.
Our Reading
The numbers tell one story: the Super Bowl’s supposed to be a highlight for gambling companies, but this year it’s a cloud over the industry.
Flutter Entertainment’s stock is on an eight-week skid, the longest in 23 years, and its main competitor DraftKings is trading at its lowest levels since 2023.
Prediction markets like Kalshi are partly to blame, with Kalshi expected to attract $630 million in bets for the Super Bowl, accounting for 80% of the year-over-year growth in wagering activity.
Wall Street analysts have lowered their earnings and revenue expectations for both companies, with Flutter’s forecast down 49% and DraftKings’ down 29%.
Original observation: “The rise of prediction markets is forcing traditional gambling apps to adapt or die.”
