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DraftKings, Flutter Stocks Plunge as Kalshi Disrupts Betting Market

10/1/2025

46 9 Full Breakdown

Summary

Story summary

DraftKings, Inc. and Flutter Entertainment plc shares fell over 10% after Kalshi launched customizable parlays.
DraftKings and FanDuel now control 70% of legal online betting, as prediction-market competition grows.
Kalshi's volume surpassed its Election Day record, aided by a Robinhood partnership and rising revenue forecasts.
DraftKings is focusing on states without legal sports betting to maintain presence until regulations change.

History

Historical Context

The U.S. Supreme Court's 2018 ruling in Murphy v. NCAA invalidated the Professional and Amateur Sports Protection Act (PASPA), allowing states to legalize sports betting. This led to a surge in market participation, with companies like DraftKings and FanDuel capturing 70% of the market. By 2024, 37 states had legalized sports betting, transforming consumer engagement and regulatory frameworks in the industry.

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Story summary

DraftKings, Inc. and Flutter Entertainment plc shares fell over 10% after Kalshi launched customizable parlays.
DraftKings and FanDuel now control 70% of legal online betting, as prediction-market competition grows.
Kalshi's volume surpassed its Election Day record, aided by a Robinhood partnership and rising revenue forecasts.
DraftKings is focusing on states without legal sports betting to maintain presence until regulations change.

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