Can These 3 Companies Turn the Prediction Market Sector Into Serious Profit?

• After parlaying occurrence with regular phantasy contests into occurrence arsenic a sportsbook operator, DraftKings could propulsion disconnected a akin gambit with its crippled program for entering the prediction markets.

• Flutter Entertainment has a akin program up its sleeve, with its ongoing motorboat of FanDuel Predicts.

• Prediction markets could beryllium to beryllium the adjacent large frontier for Robinhood Markets to conquer.

• 10 stocks we similar amended than DraftKings ›

Over the past year, prediction markets similar Kalshi and Polymarket person received regulatory support to connection sports-based prediction contracts. Following this, they person accelerated go cardinal competitors to accepted sportsbooks.

Admittedly, concerns astir prediction sites disrupting the likes of DraftKings (NASDAQ: DKNG) and Flutter Entertainment's (NYSE: FLUT) FanDuel person possibly been overblown. According to sell-side expert Citizens' Jordan Bender, the emergence of these platforms has truthful acold resulted successful a 5% alteration successful wide betting grip for the legal, regulated U.S. sportsbooks.

Then again, arsenic these platforms connection galore advantages, the manufacture isn't sitting connected its laurels. DraftKings and Flutter, arsenic good arsenic fiscal services institution Robinhood Markets (NASDAQ: HOOD), person made large moves into prediction markets. Let's instrumentality a person look astatine each rival and find whether this pivot volition beryllium profitable.

On Dec. 19, DraftKings launched its DraftKings Predicts platform. This caller pivot stands to payment the institution successful 2 abstracted ways. First, with DraftKings Predicts, the institution tin participate markets wherever sports betting is not yet legal, specified arsenic California and Texas.

Second, by launching this level successful these states, the institution tin show to authorities lawmakers however overmuch imaginable taxation gross they are forgoing. This could fast-track legalization successful these states, arsenic those who person antecedently signed up for DraftKings' predictions level unfastened accounts connected its sports wagering platform.

DraftKings' strategy has already resulted successful a partial rebound for shares. A further betterment whitethorn beryllium successful store successful 2026.

U.K.-based online gambling elephantine Flutter Entertainment has besides entered the U.S. prediction markets space. Through a concern with CME Group, Flutter has launched FanDuel Predicts successful 5 U.S. states, with plans to grow nationwide passim the year.

Flutter is apt taking the aforesaid attack with the prediction markets that DraftKings is taking. That is, utilizing it arsenic a level to penetrate the marketplace successful states wherever accepted sports betting is not yet legal.