Betting Stocks Rally on Senate Bill Aiming to Halt Sports Prediction Markets
Posted on: March 23, 2026, 11:33h.
Last updated on: March 23, 2026, 12:18h.
- Shares of DraftKings, Flutter, and rivals popped on Monday on news of a Senate bill that would prohibit sports event contracts
- The bill will reportedly be introduced by a Democrat and a Republican, confirming bipartisan support
- During football season, some experts said that the percentage of prediction markets about sports betting was as high as 80%
Shares of DraftKings (NASDAQ: DKNG), Flutter Entertainment (NYSE: FLUT), and other sports betting stocks rallied Monday on reports of a bipartisan Senate aiming to bar prediction market operators from offering sports event contracts.
The Wall Street Journal reports that Sen. John Curtis (R-UT) and Sen. Adam Schiff (D-CA) could introduce the legislation as soon as today prohibiting companies regulated by the Commodities Futures Trading Commission (CFTC) from offering sports derivatives. The commission is the federal regulator overseeing prediction markets in this country.
Sports betting stocks, which were punished last year due in part to investor fears about the emergence of prediction markets, surged on the report. In midday trading, Flutter is up more than 5% while DraftKings is higher by nearly 2%. Entain Plc (OTC: GMVHY) and MGM Resorts International (NYSE: MGM) — the 50/50 owners of BetMGM — are up 10.4% and 5.4%, respectively, at this writing.
That ebullience likely boils down to the widely known fact that sports derivatives account for substantial portions of prediction market volume. During football season, some experts said that the percentage was as high as 80%, maybe higher. Some data sources indicate that during the first two rounds of the NCAA Tournament, 90% of Kalshi’s volume was attributable to sports event contracts.
Anti-Sports Prediction Markets Bills Bring Ds, Rs Together
In today’s bitterly partisan US political climate, it’s hard to find issues on which members of both parties agree; unfortunately for the prediction markets industry, sports event contracts are one such example.
As for Curtis and Schiff teaming up, it may seem unusual on the surface, but upon closer examination, it’s not. Utah is one of the most stridently anti-gaming states in the country and would prefer to remain that way. Gov. Spencer Cox (R-UT) has recently become one of prediction markets’ most vocal critics, making clear he believes event contracts are betting in disguise.
As for Schiff, he represents a state with dozens of tribal casinos. Tribal gaming entities view prediction markets as threats to their sovereignty because those groups work out gaming compacts with the states in which they operate, while prediction market operators don’t possess state gaming permits.
Although neither California nor Utah permits sports betting, the Schiff/Curtis partnership is the second example of representatives from the two states teaming up on prediction market-curbing legislation. Rep. Blake Moore (R-UT) and Rep. Salud Carbajal (D-CA) recently introduced the Event Contract Enforcement Act, which aims to bar sports event contracts as well as derivatives related to assassination, terrorism, and war.
Why Sports Betting Stocks Rallied
While DraftKings, Flutter, and other sports betting stocks have a long way to go to reclaim prior highs, understanding the Monday rally on the back of the Curtis/Schiff isn’t difficult.
Although those two operators have launched their own yes/no exchanges and are signaling willingness to spend mightily to support those efforts, prediction markets aren’t yet significant parts of those operators’ businesses. Plus, the companies are steering clear of offering sports event contracts in states where sports wagering is legal.
Further underscoring reasons behind today’s strength in sports betting equities is a recent Truist Securities survey confirming that a majority of bettors would choose DraftKings over Kalshi when given the choice. That study also notes that a majority of prediction market users in states where sports betting isn’t legal would abandon those platforms for sports purposes if their states allow sports wagering in the future.
No comments yet