Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. <\/p>\n
The battle of prediction markets <\/a>versus traditional online sportsbook companies continues to heat up as more consumers test the waters of the newer option to wager on sports outcomes and other markets. <\/p>\n \u2022 Why is FLUT stock advancing?<\/a> <\/p>\n Prediction Markets vs. Sportsbooks <\/p>\n The rise of private prediction market companies<\/a> such as Kalshi and Polymarket has put pressure on publicly traded sportsbook companies like DraftKings Inc (NASDAQ:<\/a>DKNG<\/a>) and Flutter Entertainment Inc (NYSE:<\/a>FLUT<\/a>). <\/p>\n Publicly traded companies such as Coinbase Global Inc (NASDAQ:<\/a>COIN<\/a>) and Robinhood Markets Inc (NASDAQ:<\/a>HOOD<\/a>) have also highlighted strong growth of prediction markets for their consumers, which could mean growth of the overall market and\/or taking market share from sportsbooks. <\/p>\n See More:Top Momentum Stocks<\/a> <\/p>\n There are multiple advantages that prediction markets currently have, including being able to be offered in some states where sportsbooks are illegal. Prediction markets also offer wagers on many non-sports markets that sportsbooks normally don’t touch. <\/p>\n Prediction markets have also faced legal challenges and the battle in many states is far from over. <\/p>\n Benzinga polled its viewers on “PreMarket Playbook<\/a>” on Oct. 5 to hear what the current thought is on the heated battle. <\/p>\n “Will prediction markets make sports betting stocks extinct?” Benzinga asked. <\/p>\n The results from 116 viewers are: <\/p>\n Yes, $DKNG and $FLUT are toast: 17% <\/p>\n No, sportsbooks will adapt: 28% <\/p>\n They’ll merge into one industry: 22% <\/p>\n Too early to tell: 32% <\/p>\n Benzinga “PreMarket Playbook<\/a>” runs Monday through Friday at 8 a.m. ET on YouTube. <\/p>\n The leading vote-getter was that it is too early to tell, which comes as prediction markets are still relatively new and face continued legal challenges. <\/p>\n Outside of that, the next highest vote-getter was that sportsbooks will adapt, which is currently happening. <\/p>\n Both DraftKings and Flutter have launched their own prediction markets in the U.S., allowing their existing users to place wagers on prediction markets. The platforms are also a tool to land new customers and could increase market share as more states officially legalize sports betting. <\/p>\n Read Also:LeBron James Will Make Nearly 4x More From Polymarket Than Playing for the 76ers<\/a> <\/p>\n The End of Sportsbooks? <\/p>\n The lowest vote-getter in the poll was that DraftKings and Flutter are toast as a result of prediction markets, with 17%. This translates to around one in six Benzinga viewers saying that prediction markets will be the end of these two companies. <\/p>\n While this is only a small sample size in the Benzinga poll, this could be good news for the sportsbook companies. However, a look at the stock prices of DraftKings and Flutter, it would appear that more people think the end is near. <\/p>\n DraftKings stock is down 44.4% year-to-date in 2026, recently hitting its lowest levels since April 2023. <\/p>\n Flutter stock is down 65.1% year-to-date in 2026, with shares trading near their March 2020 lows. <\/p>\n Online sportsbooks likely have no choice but to continue to offer prediction markets and compete with the market leaders in the sector. There could also be a rush of consolidation among sportsbooks and prediction market companies as the various companies in both sectors look to combine efforts to gain market share and push forward. <\/p>\n Read Also:EXCLUSIVE: Prediction Markets ‘Not A Zero-Sum Game’ \u2013 Market Expert Says Sportsbooks Can Still Win<\/a> <\/p>\n Photo: Shutterstock <\/p>\n This article EXCLUSIVE: Are DraftKings, Flutter Toast? Only 1 in 6 Benzinga Viewers Think Prediction Markets Will Kill Them<\/a> originally appeared on Benzinga.com<\/a> <\/p>\n \u00a9 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. <\/p>\n","protected":false},"excerpt":{"rendered":"Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. 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