NEW YORK, Jan 17, 2026, 05:18 EST — Market closed.
DraftKings Inc shares ended Friday roughly 8% lower, closing at $32.62. It capped a turbulent week for online betting stocks as the NFL playoffs approach and investors brace for a long weekend.
New York, a major U.S. mobile sports wagering hub, saw weekly “gross gaming revenue” drop to $37.3 million for the week ending Jan. 11, down from $62.0 million the previous year. Meanwhile, “handle” — the total wagers placed — edged down about 2% to $549.6 million. The state levies a 51% tax on mobile sports wagering GGR, with revenue reported on a cash basis, according to the Gaming Commission.
The timing couldn’t be more awkward. That week clashed with the start of the NFL playoffs, and investors have been tracking whether traditional sportsbooks are ceding ground to prediction-market platforms offering event-linked contracts outside state gambling laws. “We do believe prediction markets are having an impact on the sports betting companies,” said Citizens equity research analyst Jordan Bender. Piper Sandler analysts, led by Patrick Moley, highlighted a record $720 million in NFL-related bets on Kalshi. Fortune
Shares tied to gambling slid further. Flutter Entertainment, the company behind FanDuel, declined around 6.3% on Friday. Caesars Entertainment wasn’t spared either, slipping about 3.9%.
The selloff followed a boost from the sell side just a day earlier. Wells Fargo upgraded DraftKings to Overweight from Equal Weight, hiking its price target to $49 from $31. The firm pointed to a “strong” fourth quarter as the driver, according to a report shared by The Fly. TipRanks
A late-week filing revealed JPMorgan Chase & Co holds 26.6 million DraftKings shares, representing 5.1% of the class, according to a Schedule 13G dated Jan. 16. SEC
Regulation is also a factor, especially concerning sports-related prediction markets. NCAA President Charlie Baker has called on the Commodity Futures Trading Commission to halt college-sport prediction markets, insisting, “We need one set of fair, transparent standards.” NCAA.org
The week-to-week numbers can be all over the place. Sportsbook revenue jumps around a lot depending on “hold” — the cut operators keep after paying out bets — and even if betting volume stays steady, a handful of big wins for bettors can shrink revenue.
Still, bulls face the risk that prediction markets will siphon off activity during major “tentpole” sports weekends, pushing sportsbooks to ramp up promotions to hold their ground. On the other hand, stricter regulations on sports-related event contracts might ease the pressure on the sector right as the season hits its most high-stakes stretch.
U.S. stock markets shut on Monday for Martin Luther King Jr. Day, reopening Tuesday. That session will reveal if Friday’s dip was just a one-week data glitch or signals a rougher ride ahead for DraftKings and similar stocks. nyse.com
