$DKNG

Stifel maintains 'buy' ratings on Flutter (PPB) and DraftKings (DKNG) but cuts price targets, citing sector headwinds. Flutter's U.S. sports betting handle grows 10% YoY, while DraftKings faces challenges. Other gaming stocks analyzed include Rush Street, Codere, Sportradar, Genius, and Grandstand.

DraftKings and other online gambling firms are under scrutiny from federal lawmakers and state officials regarding their use of AI and customer data to target repeat customers. New York's attorney general and gaming commission are investigating, while Louisiana delayed DraftKings' license renewal. Three U.S. lawmakers also requested details about 'V.I.P.' programs and AI use. Regulators in Massachusetts and Michigan are also looking into the issue.

Stifel lowered its price target for DraftKings (DKNG) to $32 from $36, citing spending concerns, while maintaining a Buy rating. The firm expects $100M in incremental spending, reducing its fiscal 2026 EBITDA estimate. Other analysts have mixed views on DKNG, with targets ranging from $27 to $30. The stock has declined 39% year-to-date.

DraftKings CEO Jason Robins stated the company's position on prediction markets is a 'win-win' regardless of legal outcomes. The company offers sports event contracts but avoids prediction markets in states where it holds sports betting licenses to mitigate regulatory risk. DraftKings launched its prediction platform under CFTC oversight. The Seminole Tribe of Florida sued DraftKings, alleging its products violate state gaming rights.

DraftKings CEO Jason Robins announced the company's prediction market, DKeX, reached $3 billion in notional volume for the week ended 18 October, ranking third according to Aldrin Research. Robins attributed this success to DraftKings' R&D team and cross-selling opportunities with other divisions. DKeX also recorded a company-high $316 million in notional volume for Week 6 of the NFL season.

A class action lawsuit was filed in Louisiana against FanDuel and DraftKings, alleging their apps exploit addictive behavior. The suit also names two casino licensees. Plaintiffs seek refunds and damages, citing a 75% market share for the two companies in 2023. The lawsuit claims 96% of customers lose money, driving the need for addictive design.

DraftKings (DKNG) reported a 4.6% revenue decline in Q2 2026, despite an 11% increase in betting volume. Management attributed this to favorable game outcomes and higher customer acquisition costs. Revenue growth has slowed from previous years, and the company reported an operating loss of $68.2 million. DraftKings maintained its 2026 revenue guidance and plans significant investments in its Predictions product. The stock has fallen 37.7% over the year, underperforming the S&P 500.

Casino and sports betting firms, including FanDuel and DraftKings, spent over $80M on campaign donations and lobbying. The American Gaming Association spent $2.06M. Prediction markets like Kalshi and Polymarket also invested heavily, with Kalshi spending $1.6M on campaigns and $1.79M on lobbying. They aim to influence regulations and retain market share amid legal challenges and scrutiny over gambling addiction.

DraftKings CEO Jason Robins stated that DKeX, the company's prediction market exchange, has become the third-largest in the US by trading volume, according to Aldrin Research. DKeX handled $1.04 billion in trades for the week ending October 18, with a 3.57% market share. DraftKings operates in 38 states but offers a full suite of event contracts in only 18.

FanDuel, the largest US sportsbook, is owned by Flutter Entertainment, valued at $31B. DraftKings is a public company (DKNG) controlled by CEO Jason Robins. BetMGM is a joint venture between MGM Resorts (CZR) and Entain. Caesars Sportsbook is owned by Caesars Entertainment (CZR), while bet365 remains family-owned. Flutter cut FanDuel's 2026 EBITDA forecast to $760M.