DraftKings (NASDAQ:DKNG) saw its stock inch up 0.4%, even after being flagged as a short target in a report from The Bear Cave, which warns that prediction markets are emerging as a competitive challenge to the sports betting giant.
According to the report, platforms such as Kalshi are challenging the traditional DraftKings–FanDuel duopoly by offering customers better odds and deeper order books. Kalshi’s prediction markets, which allow users to trade directly on binary outcome events, often provide more favorable payouts than DraftKings for comparable bets.
The Bear Cave analysis examined NFL betting odds, finding that Kalshi offered superior payouts in 8 of 14 Sunday games reviewed. In one example, a $50 bet on the underdog New York Giants would yield $157.50 on DraftKings versus $170 on Kalshi after fees.
Despite these competitive pressures, DraftKings stock remained in positive territory during Thursday’s session. The company, valued around $21.2 billion, operates in sports betting, fantasy sports, and online gaming, including casino offerings.
The report concludes that prediction markets could transform the previously stable duopoly into a more contested space, potentially placing DraftKings “on the defensive” as these alternative platforms continue to grow.
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