Online sports betting and igaming stocks are down 35% this year, according to Jefferies Equity Research analyst David Katz.
Katz explained that “our optimism for 1Q26 reporting is only moderate. ” The exception was Rush Street Interactive, which he expected to beat estimates and raise guidance. Firms on which Katz still bullish, though, included DraftKings and Sportradar.
Given that the legal prospects for prediction markets in the United States and their economic outlook remain unresolved, Katz wrote, myriad questions cloud the picture for various affected stocks. “Although there is no evident impact to existing operations for our covered stocks, the investment in predictions by [DraftKings] implies that there is,” Katz wrote, citing DraftKings’ 35.5% share-price plunge in 2026.
