DraftKings Stock (DKNG) Jumps on Reports Sports Betting Will Be Kept Out of Prediction Markets

FomoAnxiety · 2026-03-23T19:13:41+00:00

DraftKings stock rose 4% due to expected U.S. legislation aimed at separating sports betting from prediction markets, reducing competition. Senators Schiff and Curtis propose a bill limiting prediction markets from offering sports-related contracts, which could benefit DKNG.

FomoAnxiety

2026-03-23 19:13:41

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DraftKings (DKNG) stock is up 4% on media reports that new U.S. legislation seeks to keep sports betting separate from prediction markets.

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Prediction markets that let people bet on everything from football games to election outcomes have emerged as a major competitor of online sports betting platforms such as DraftKings, and that competitive threat has weighed on the stock.

But now, a pair of U.S. senators plan to introduce legislation that would ban prediction market operators from listing event contracts tied to sporting events, effectively eliminating prediction markets as a source of competition for DraftKings.

The Legislation that Could Help DraftKings

Senator Adam Schiff, a Democrat from California, and Senator John Curtis, a Republican from Utah, are co-sponsoring the legislation that seeks to regulate prediction markets such as Kalshi and Polymarket. The bill would prevent them from listing contracts for sporting events and casino-style games such as video poker, blackjack, and bingo.

Prediction markets have tried to position themselves as separate from gambling. Yet, while prediction markets allow participants to bet on future outcomes for a range of events, from wars to Oscar winners, most contracts on the sites are related to sports. Prediction markets are coming under increasing scrutiny from lawmakers over concerns that they lead to gambling addiction.

Is DKNG Stock a Buy?

DraftKings has a consensus Strong Buy rating among 30 Wall Street analysts. That rating is based on 24 Buy and six Hold recommendations issued in the last three months. The average DKNG price target of $34.76 implies 43.40% upside from current levels.

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