As DraftKings Weighs Entry into Prediction Markets, How Should You Play DKNG Stock?

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RegExp("[?&]notifications=1(&|#|$)");"desktop"===y&&i&&b.test(window.location.search)&&(i.checked=!0)};be("ybar-mod-notification",(function(e){var t={isUH3:"crunch"===e.getConfig().ytheme,notifContainer:document.getElementById("notification-container"),notifBadge:document.getElementById("notif-badge"),notifMenu:document.getElementById("ybarNotificationMenu"),notifMenuOpener:document.querySelector("#ybarNotificationMenu + label"),notifDropdown:document.getElementById("notifDropdownContainer"),tooltipContainer:document.querySelector(".".concat(Vn)),notifLabel:document.querySelector(".".concat($n))};t.notifDropdown&&ro(e,t)}))}()}};]]>Aditya RaghunathSat, Jul 19, 2025, 1:00 PM 3 min readGame board by Thomas Buchholz via UnsplashDraftKings (DKNG) is reportedly in talks to acquire Railbird, a federally regulated prediction market platform. This development signals the sports betting giant’s expansion into a rapidly growing industry. Prediction markets have been gaining traction following the recent election cycle.Railbird, founded in 2021 by former Point72 analysts Miles Saffran and Edward Tian, received CFTC approval as a designated contract market in June, making it one of the few regulated prediction markets in the United States. The platform allows users to trade contracts on real-world events, including economic indicators, policy decisions, weather patterns, and sports outcomes.Warren Buffett’s Berkshire Hathaway Earns $93,150 Every Hour from Coca-Cola Dividends AloneOpenAI CEO Sam Altman Calls DeepSeek’s Bluff: ‘I Don't Think They Figured Out Something Way More Efficient’These Are the Highest Yielding Dividend Aristocrats Today (Entire List)Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now!www.barchart.comThe acquisition interest follows DraftKings’ failed bid to secure its own federal prediction market license. Meanwhile, competitor FanDuel has reportedly explored partnerships with established player Kalshi.For DKNG stock investors, the potential acquisition could diversify DraftKings’ revenue streams beyond traditional sports betting, tapping into growing interest in event-based trading. However, the regulatory complexity and competitive landscape pose challenges.The acquisition would align with DraftKings’ strategy to expand its digital entertainment offerings and attract new user demographics, thereby boosting long-term growth prospects in an increasingly competitive sports betting market.In Q1 2025, DraftKings reported revenue of $1.41 billion, an increase of 20% year over year. It reported an adjusted EBITDA of $103 million while maintaining strong operational momentum across key metrics.The company’s Sportsbook handle increased 16% year-over-year to $13.9 billion, meeting expectations despite challenging March Madness outcomes.Its structural hold percentage improved to 10.4%, up 60 basis points year-over-year, driven by increased parlay betting and enhanced product offerings from recent acquisitions, such as Simplebet.Management revised full-year 2025 guidance to $6.3 billion in revenue and $850 million in adjusted EBITDA, citing $170 million in revenue headwinds from unfavorable sports outcomes year-to-date. However, core business fundamentals remain strong, with live betting now accounting for more than 50% of the total handle for the first time.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,296.79 -0.57 (-0.01%)Dow 3044,342.19 -142.30 (-0.32%)Nasdaq20,895.66 +10.01 (+0.05%)Russell 20002,240.01 -13.68 (-0.61%)VIX16.41 -0.11 (-0.67%)Gold3,358.30 +13.00 (+0.39%)PortfolioSign in to access your portfolioSign inTop gainersSTEM Stem, Inc. 13.50 +4.23 (+45.63%)TLN Talen Energy Corporation 328.63 +64.63 (+24.48%)CRSP CRISPR Therapeutics AG 65.13 +10.04 (+18.22%)IVZ Invesco Ltd. 19.92 +2.64 (+15.28%)SOC Sable Offshore Corp. 31.69 +3.35 (+11.82%)Top losersMLGO MicroAlgo Inc. 14.66 -3.12 (-17.57%)ARWR Arrowhead Pharmaceuticals, Inc. 16.76 -2.09 (-11.09%)MOH Molina Healthcare, Inc. 182.98 -21.27 (-10.41%)ELV Elevance Health, Inc. 277.09 -25.36 (-8.38%)STNE StoneCo Ltd. 13.67 -1.24 (-8.32%)Most activeLCID Lucid Group, Inc. 3.0400 -0.0800 (-2.56%)QS QuantumScape Corporation 14.64 +1.04 (+7.65%)NVDA NVIDIA Corporation 172.41 -0.59 (-0.34%)WBD Warner Bros. Discovery, Inc. 12.75 -0.09 (-0.70%)NU Nu Holdings Ltd. 13.02 -0.97 (-6.93%)Earnings eventsTrending tickersETH-USD Ethereum USD 3,753.14 +204.80 (+5.77%)LTC-USD Litecoin USD 116.14 +14.96 (+14.78%)XRP-USD XRP USD 3.49 +0.09 (+2.65%)BTC-USD Bitcoin USD 117,900.25 -389.62 (-0.33%)SOL-USD Solana USD 180.25 +3.79 (+2.15%)Top economic events