DraftKings and Flutter Jump After Ninth Circuit Rules Prediction Markets Are Gambling

RegulationPrice Action Impact 4
โดย Insider Monkey·US·Read original
Summary · why it matters

The Ninth Circuit Court of Appeals ruled that sports-related event contracts offered by prediction-market platforms are sports bets rather than swaps under federal commodities law, clearing the way for Nevada to apply its gaming regulations to them. Shares of DraftKings Inc. gained up to 10% and Flutter Entertainment plc rose up to 8% on August 28 following the decision. The court denied requests for injunctive relief from Kalshi, Crypto.com, and Robinhood, all of which had sought to block the Nevada Gaming Control Board from shutting down their sports-related event contract offerings in the state. Prediction-market platforms and the Commodity Futures Trading Commission have argued that such contracts fall under exclusive federal jurisdiction as swaps, while 44 states have countered that the products are sports betting disguised in financial terms and should face the same state-level gambling regulations as licensed sportsbooks. The ruling reduces a significant structural threat to DraftKings and Flutter, though Kalshi's September 9 petition for rehearing and any eventual Supreme Court review remain key developments to watch.

Impact on stocks 3

Consumer Discretionary▲ · 2 stocks
DraftKings Inc
DKNG
▲ PositiveRegulationrelevance

Ninth Circuit ruling that prediction-market event contracts are sports bets clears Nevada to apply gaming regulations, reducing a structural threat to DraftKings' licensed sportsbook business.

Flutter Entertainment plc
FLUT
▲ PositiveRegulationrelevance

Same Ninth Circuit ruling reduces the regulatory threat from prediction-market platforms to Flutter's licensed sports betting operations.

Digital Finance & Tokenization▼ · 1 stocks
Robinhood Markets Inc
HOOD
▼ NegativeRegulationrelevance

Court denied Robinhood's request for injunctive relief, allowing Nevada to shut down its sports-related event contract offerings.

Off-coverage companies 2

Crypto.comPrivate▼ Negative
Regulationrelevance

Crypto.com's request for injunctive relief was denied, clearing Nevada to shut down its sports-related event contract offerings.

KalshiPrivate▼ Negative
Regulationrelevance

Kalshi's request for injunctive relief was denied, clearing Nevada to shut down its sports-related event contracts.

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