"Meanwhile, during what is typically a boom time for sportsbooks, New York state data showed that revenues from online sports wagering plunged from a year earlier. DraftKings shares dropped as much as 8.3% in New York trading, the worst intraday plunge since late October. Shares of Flutter, which runs the gambling app FanDuel, were down as much as 5.5%, falling to the lowest intraday level since late November. The broader gambling space also took a dive, with an S&P gauge of the industry's shares shedding as much as 2.5%."
"Online sportsbooks have been under pressure for months since prediction markets rose to prominence with their new sports contracts. The startups have used their status as federally regulated exchanges to offer sports wagers that circumvent the state laws that have governed online gambling. While several state gaming regulators have called the products illegal and pushed the companies to shut them down, the startups have plowed ahead and sports bets have come to account for around 90% of the trading volumes on Kalshi. The contracts have gotten wide distribution through Kalshi's partnership with the retail broker Robinhood."
Prediction-market startups such as Kalshi and Polymarket introduced financial contracts tied to sports-game outcomes and experienced surging activity during the start of the NFL playoff season. New York state data showed online sports wagering revenues fell year-over-year during a period that typically boosts sportsbooks. DraftKings and Flutter shares fell sharply, dragging an S&P gauge of gambling stocks lower. The startups leverage federal exchange status to offer sports wagers that can circumvent state gambling laws. Several state regulators have labeled the products illegal, but the startups continued operations while sports bets accounted for about 90% of Kalshi's trading volumes.
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