"Prediction markets surged in 2025, with trading volumes reaching $63.5 billion, a fourfold increase from $15.8 billion in 2024. Platforms like Polymarket and Kalshi drove this growth, enabling bets on outcomes across politics, sports, economics, and more. Is there a cause-and-effect relationship between the flourishing of prediction markets and the kneecapping of the stocks traditional online betting sites like DraftKings ( NASDAQ:DKNG | DKNG Price Prediction) and Flutter Entertainment ( NASDAQ:FLUT ) have suffered in the past 12 months?"
"DraftKings reported fourth-quarter 2025 revenue of $1.989 billion, up 43% from $1.393 billion in the prior year. This marked a quarterly record, driven by strong sportsbook handle growth to $54 billion for the full year, an 11% increase. However, the revenue growth slightly missed the $1.990 billion consensus estimate, contributing to a 13% drop in the stock in noon trading today."
Prediction markets expanded rapidly in 2025, with trading volumes reaching $63.5 billion, up fourfold from $15.8 billion in 2024, led by platforms such as Polymarket and Kalshi. Traditional online betting equities including DraftKings and Flutter Entertainment lost more than half their value over the past year. DraftKings reported Q4 2025 revenue of $1.989 billion, a 43% increase and a quarterly record, though it slightly missed consensus. Monthly unique payers remained 4.8 million and ARPU rose 43% to $139. Adjusted EBITDA reached $343 million, net income turned positive at $136.4 million, and full-year revenue exceeded $6 billion.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]