A mix of prediction market news, an NBA gambling scandal, and bettor-friendly NFL results combined to further batter shares in the two biggest companies in U.S. sports betting, with FanDuel owner Flutter and DraftKings losing another $4 billion in market cap over the course of three trading days.
The two sports betting giants saw their share prices fall by well over 20% in the course of two months, wiping a combined $21 billion from their valuations.
Prediction markets have played a major role in the decline of DraftKings’ and Flutter’s share prices during the time frame — with Kalshi’s launch of a build-your-own parlay feature leading to shares in both companies falling by more than 10% in a single day, wiping $7 billion off their combined values.
