DraftKings and Flutter Stock Surge 7% as Bill Aims to Ban Prediction Market Sports Betting

Investing.com - DraftKings (NASDAQ: DKNG) and Flutter Entertainment (NYSE: FLUT) stock prices rose 7% on Monday morning, after The Wall Street Journal reported that U.S. senators plan to introduce bipartisan legislation to ban sports betting predictions in the prediction markets.

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The proposed legislation would prohibit entities regulated by the Commodity Futures Trading Commission (including U.S. platforms Kalshi and Polymarket) from listing contracts related to sporting events. The bill also seeks to ban these platforms from offering casino-style games such as slot machines, video poker, blackjack, and bingo.

Senator Adam Schiff (Democrat from California) stated that the Commodity Futures Trading Commission is greenlighting these markets and promoting their growth. He added that it’s time for Congress to step in and eliminate this backdoor, which violates state consumer protection laws, infringes on tribal sovereignty, and does not generate any public revenue.

Senator John Curtis (Republican from Utah), a co-sponsor of the bill, said Utah has too many young people exposed to addictive sports betting and casino-style game contracts, which should be regulated by state governments rather than federal agencies.

This legislation is the first bipartisan Senate bill seeking to regulate prediction markets.

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