The Super Bowl is usually a big event for gambling companies, but this year, Flutter Entertainment Plc and DraftKings have been struggling. The Seattle-New England matchup lacks star power, and prediction markets like Kalshi are eating into traditional sportsbook handle. Record trading volumes are expected on prediction markets this weekend.

Kalshi, a prediction market startup, has taken off since offering sports wagers post-Trump win. Industry analysts predict a record Super Bowl haul but note that prediction markets could account for 80% of the year-over-year growth in wagering activity for the event. Flutter and DraftKings have seen significant drops in earnings estimates.

BetMGM saw record sports bets in Q4 2024, driving a 63% revenue increase. Some execs believe prediction markets pose a threat only in states where traditional online gambling is not allowed, like California and Texas. DraftKings and FanDuel have launched their own prediction market apps in response.

The rapid growth of traditional gambling apps post-Supreme Court decision may be stalling. Kalshi’s unique betting options on everything from halftime show length to celebrity attendance have attracted users. Gaming regulators are trying to shut down Kalshi, but CFTC chair Michael Selig appears to support sports contracts moving forward.

Read more at Yahoo Finance: Gambling Stocks Sag as Prediction Markets Steal Super Bowl Bets