US sportsbooks continue to feel the heat of prediction markets. Multiple firms suffered big stock declines following Tuesday’s news the New York Stock Exchange owner is investing up to $2bn in Polymarket.
DraftKings Sportsbook was the biggest loser
As of early Tuesday morning, DraftKings Sportsbook was the biggest loser, its stocks dropping 6%. By the afternoon, the Boston-based firm was still down 5%, the same percentage FanDuel’s parent Flutter Entertainment fell to yesterday.
iGaming reporter Ryan Butler took to X with a visual of how Polymarket’s news spelled a “bad day” for gambling markets:
BetRivers parent, Chicago-based Rush Street Interactive, also watched its stock price plummet, with analysts stating investors are offloading gaming shares as the sportsbook vs prediction market battle continues to spook the industry.
Last week, DraftKings and FanDuel shares dropped 18% and 8%, respectively.
Bloomberg cited Citizens equity research analyst Jordan Bender, who warned firms like DraftKings to react with “a strategy for investors – whether it’s launching prediction markets or stepping up marketing.”
“Until that happens” said Bender, who has backtracked from stating last week the likes of Polymarket didn’t pose a threat to the major sportsbooks, “prediction markets present a risk.”
