Shares of DraftKings Inc (NASDAQ:DKNG) are trading off session highs Thursday following a new report from The Bear Cave highlighting a growing competitive threat from prediction markets.
What To Know: The report posits that platforms like Kalshi are disrupting the duopoly held by DraftKings and Flutter Entertainment PLC’s (NYSE:FLUT) FanDuel by offering better odds and deeper order books, putting DraftKings on the defensive.
Benzinga has reached out to DraftKings for comment on the report.
The Bear Cave’s research showed that Kalshi often provides superior payouts. For example, a winning $50 bet on the New York Giants upcoming game Sunday night would pay $170 on Kalshi, significantly more than the $157.50 payout on DraftKings for the same bet.
The competitive pressure is likely to continue to accelerate as Kalshi plans to introduce over/under, spread and player-specific bets for the 2025 NFL season. These new markets will include “anytime touchdown” wagers, a highly popular and impactful betting category for sportsbooks.
While DraftKings has previously hinted at exploring prediction markets, the direct competition represents a growing headwind for the sports betting giant.
Benzinga Edge Rankings: Benzinga Edge stock rankings give you four critical scores to help you identify the strongest and weakest stocks to buy and sell. For example, the platform gives DraftKings a low Growth score of 21.55, signaling potential weakness in that category.
Price Action: According to data from Benzinga Pro, DraftKings shares are up 0.97% at $43.06 at publication time on Thursday. The stock has a 52-week high of $53.61 and a 52-week low of $29.61.
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How To Buy DKNG Stock
By now you're likely curious about how to participate in the market for DraftKings – be it to purchase shares, or even attempt to bet against the company.
Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.
If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.
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