DraftKings and Flutter Entertainment are making moves into prediction markets, following regulatory approval for platforms like Kalshi and Polymarket. This shift has led to a 5% decrease in overall betting handle for U.S. sportsbooks. DraftKings recently launched DraftKings Predicts, targeting states where sports betting is not yet legal to potentially drive legalization. Flutter has also entered the U.S. prediction markets space with FanDuel Predicts, aiming to expand nationwide. Robinhood Markets is also making strides in prediction markets, with a platform generating $100 million in quarterly revenue by Q3 2025. While concerns about market disruption exist, these companies are leveraging prediction markets to mitigate declines and potentially drive valuation expansion for sports betting stocks. Robinhood’s entry into prediction markets could counterbalance concerns about a growth slowdown and drive revenue growth, potentially impacting its valuation positively. Investors should consider these new developments in evaluating DraftKings, Flutter Entertainment, and Robinhood Markets.

Read more at Yahoo Finance: Can These 3 Companies Turn the Prediction Market Sector Into Serious Profit?