Shares of DraftKings (NASDAQ:DKNG) climbed 2.3%, while Flutter Entertainment (NYSE:FLTR), the parent of FanDuel, rose 2.7%, as debate flared around the fast-growing prediction market sector in the run-up to Sunday’s Super Bowl.
The rally comes amid a public dispute involving Kalshi Inc., the largest prediction market operator in the U.S., and data startup Juice Reel. According to Bloomberg, tensions emerged after a stock analyst used Juice Reel’s data to argue that users of prediction markets were losing money more quickly than bettors using conventional sports wagering apps.
The disagreement intensified when Kalshi initially accused Juice Reel of “extortion.” Juice Reel’s founder pushed back, standing by the accuracy of the data and alleging that Kalshi had attempted to pressure him into withdrawing it. Kalshi later retracted the extortion allegation but continued to challenge the conclusions drawn from the data.
Despite the controversy, established sports betting platforms appear to be holding their ground. Sensor Tower data shows that while Kalshi’s prediction app experienced a surge in downloads during the NFL playoffs, DraftKings and FanDuel continue to command far higher usage levels nationwide.
The dispute has unfolded just days before Sunday’s Super Bowl clash between the Seattle Seahawks and the New England Patriots, an event that typically ranks as one of the busiest betting weekends of the year.