DraftKings and Flutter Entertainment saw slight upticks in their respective share prices on Friday, 6 February, ahead of Super Bowl LX, despite the looming presence of Kalshi.
The New York-listed duo have seen their stock hit over recent months amid the rise of prediction markets, with investor fears growing in tandem.
However, DraftKings was up 4.3% by close of trading on Friday to $26.62 (£19.56), with the Boston-based giant recovering some of losses experienced earlier in the week, while Flutter was up 2% to $152.53.
The rebounding, albeit slight, for the duo came after a torrid six months on the markets building up the NFL’s showpiece finale.
DraftKings’ shares have slumped 37.7% during that period, while Flutter is down 46.4%.
Last summer, FanDuel owner Flutter saw its market cap breach the $50bn mark, but that figure now sits at just below $27bn.
The share price declines have been catalysed by the growing presence of Kalshi and other prediction markets platforms.
As per data from Apptopia cited in a Bloomberg report, Kalshi recorded three million apps downloads in January, more than any sportsbook app has achieved in a single month.
The data showed that in the August before the NFL season kicked off, Kalshi registered less than a third as many downloads as DraftKings and FanDuel.
In response, DraftKings and FanDuel have rolled out their respective prediction markets platforms in DraftKings Predictions and FanDuel Predicts.
However, as per Sensor Tower data, DraftKings Predictions only notched 81,000 downloads last month, and FanDuel Predictions only hit 18,000.
On Friday, DraftKings announced a partnership with Crypto.com to add player prop markets to its DraftKings Predictions platform.
Markets for both the NFL and NBA have been added via the partnership, which was facilitated by the Crypto.com | Derivatives North America arm.
DraftKings rolled out event contracts via a partnership CME Group in December.
The business had acquired Railbird last year, with plans to use the Commodity Futures Trading Commission-ratified firm as its base.
DraftKings said it is planning to integrate Railbird in the “coming months” to further strengthen its offering.
Jeanine Hightower-Sellitto, DraftKings Predictions senior vice-president and GM, said: “We’re continuing to build momentum behind DraftKings Predictions by leveraging our expertise across sports and technology and integrating additional CFTC-regulated exchanges like Crypto.com.
“This collaboration meaningfully expands customer access to trade on sports and a broader range of prediction markets and also reinforces our focus on delivering a more comprehensive and engaging experience as the product continues to evolve.”
In the Super Bowl, the Seattle Seahawks dominated the New England Patriots and ran out 29-13 winners at the Levi’s Stadium in Santa Clara, California.
The American Gaming Association had forecast Americans to legally wager $1.76bn on the Big Game.
Citizens’ Jordan Bender put the figure at $1.5bn, down 2% from last year, with the rise of prediction markets and a weaker story cited as key reasons.
He wrote: “The decline in handle is driven by less of a storyline this year with the Chiefs/Eagles boasting key players like Patrick Mahomes and Saquon Barkley and notable figures like Taylor Swift, while prediction markets, already seeing impressive volume on the game, are creating some pressure in the legal market.”
More than $500m was traded on the winner of the Super Bowl on Kalshi.
The post DraftKings and Flutter share prices rebound pre-Super Bowl amid prediction markets pressure first appeared on EGR Intel.
OSB shares edged higher on Friday despite Kalshi downloads surging, with DraftKings turning to Crypto.com to offer player prop event contracts to broaden product offering
The post DraftKings and Flutter share prices rebound pre-Super Bowl amid prediction markets pressure first appeared on EGR Intel.