DraftKings (DKNG) Stock Surges 8% as Senate Targets Prediction Market Competitors

Key Highlights Bipartisan Senate legislation seeks to prohibit CFTC-overseen platforms such as Kalshi and Polymarket from facilitating sports wagering contracts Shares of DraftKings (DKNG) and Flutter Entertainment (FLUT) each climbed approximately 8% during premarket hours Monday The proposed legislation would additionally prohibit casino-style gaming products including slots, video poker, and blackjack on prediction platforms Senators Adam Schiff and John Curtis are jointly backing the measure — representing the first cross-party Senate initiative to regulate prediction markets Multiple states such as Nevada, Arizona, Massachusetts, and Michigan have already pursued independent legal challenges against Kalshi Shares of DraftKings (DKNG) surged approximately 8% during premarket hours Monday following a Wall Street Journal report revealing that a bipartisan coalition of U.S. senators plans to unveil legislation banning prediction market platforms from facilitating sports betting contracts. DraftKings Inc., DKNG The development represented positive momentum for conventional sports betting companies, which have faced ongoing competition from platforms like Kalshi and Polymarket vying for the same sports gambling audience. The draft legislation would prohibit entities under Commodity Futures Trading Commission (CFTC) oversight from listing contracts connected to athletic competitions. This would have a direct effect on Kalshi and Polymarket’s domestic operations — two prominent players in the prediction market space. The proposal would further prohibit casino-style entertainment offerings on these platforms, encompassing slot machines, video poker, blackjack, and bingo games. Sen. Adam Schiff (D., Calif.) stated that the CFTC is “greenlighting these markets and even promoting their growth,” further noting that “it’s time for Congress to step in and eliminate this backdoor which violates state consumer protections, intrudes upon tribal sovereignty and offers no publi...