Is DraftKings Facing Threat from Prediction Markets? What’s behind the Move
The post Is DraftKings Facing Threat from Prediction Markets? What’s behind the Move appeared on BitcoinEthereumNews.com.
DraftKings:- DraftKings is making a calculated pivot into prediction markets after acquiring CFTC-registered Railbird Technologies. This is a move the sports-betting giant said will power a new “DraftKings Predictions” app for trading event contracts across finance, culture and entertainment. The acquisition, announced Oct. 21, lets DraftKings expand beyond traditional sports wagering into a rapidly growing event-contract market – that too in collaboration with Polymarket. However, this has left to question about why the leading sports betting giant is suddenly turning to decentralised prediction platforms and the event contracts. Our analysis reveals it to falling trading volumes and ultimate revenue threats from prediction markets’ entry into sports. Here’s How DraftKings Facing Threat from Prediction Markets A Block of Fame report earlier predicted that traditional sports betting platforms such as DraftKings and FanDuel are facing falling revenue threats as leading prediction markets – Kalshi and Polymarket – move deeper into sports betting arena via event contracts. Both the prediciton market players have brought in or partner with sports leagues such as NHL and PPA & MLP to penetrate more deeper into other sports categories. For instance, Kalshi, which initially built its business around political-event contracts, is pivoting into sports – notably football (NFL) and other major U.S. leagues. More than three-quarters of Kalshi’s volume is now sports-driven according to the report. While Kalshi is still much smaller in scale than legacy sportsbooks but its model – users trading contracts against each other rather than betting “against the house” – is attracting interest. The particular case study came to light on NFL Sunday 2025 when the prediction market reportedly achieved $260 million in trades on Saturday and ~$275 million on Sunday in event contracts across sports, marking a significant uptick. Contrastingly, on the same event, Flutter Entertainment (FanDuel’s parent) shares declined by up…
Filed under: News - @ October 24, 2025 2:33 pm