Betting stocks surge as bill blocks Kalshi contracts
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- Sen. Adam Schiff and Sen. John Curtis introduced the bipartisan Prediction Markets Are Gambling Act, which would prohibit sports‑event contracts on CFTC‑regulated prediction‑market platforms such as Kalshi and Polymarket.
- DraftKings shares jumped 11.34% after the bill’s announcement, while Flutter Entertainment rose 6.06% and Penn Entertainment gained 6.00% in the same session.
- Kalshi reportedly earns roughly 90% of its fee revenue from sports‑event contracts, making the proposed ban a potential major hit to its business.
- American Gaming Association praised the legislation, saying it reaffirms state and tribal sovereignty over gaming and protects consumers.
- Mick Mulvaney, head of Gambling is Not Investing, welcomed the bill as a step to ensure all sports‑betting is governed by state law rather than federal commodity rules.
- Polymarket and Robinhood operate prediction‑market platforms that could be affected; Robinhood did not comment, while Polymarket’s data partnership with Dow Jones was noted.
Why it matters: Sports‑betting firms gain immediate market confidence as their stocks surge, while prediction‑market operators like Kalshi face a possible loss of up to 90% of revenue tied to sports contracts, reshaping the competitive landscape between regulated sportsbooks and federally‑regulated prediction markets.
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