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Feb 06, 2026
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LONG
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DraftKings stock is down ~40% over the last six months. Investors sold off after the CFTC withdrew a proposed rule that would have banned sports prediction markets, fearing increased competition. The CEO argues the market has this backward. The CFTC moving toward "clear guidelines" rather than a ban is actually positive for DraftKings. As a fully legal, regulated entity, DraftKings cannot operate in "opaque" gray markets. Clear regulations allow them to deploy their resources, launch their own prediction products (which they have already started), and "win in this space." Robins explicitly states they have launched a predictions app and intend to compete directly. The public markets may continue to view prediction markets as a threat rather than an opportunity for some time; regulatory guidelines may take time to finalize. |
CNBC
Draftkings CEO on Super Bowl: 'We're expectin...
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Feb 06, 2026
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WATCH
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The CFTC (Commodity Futures Trading Commission) withdrew a proposed rule that would have banned sports contracts on prediction markets and is returning to the table to create guidelines. This signals a shift from potential prohibition to regulation. Regulatory clarity is the "green light" for the asset class to mature from a niche/gray market into a standardized industry where major corporate players can participate. The CFTC Chairman's comments were viewed by DraftKings as a "positive step" toward clarity. Specifics of the guidelines are unknown; future taxation on prediction markets could dampen their competitive advantage over traditional sportsbooks. |
CNBC
Draftkings CEO on Super Bowl: 'We're expectin...
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Feb 06, 2026
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AVOID
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Illinois recently passed a "fee per wager" (tax hike) on sports betting. High taxes are choking demand. When taxes rise, operators often have to offer worse odds or cut back on promotions to maintain margins, which drives customers away or reduces their activity. Since the tax change, the "handle" (total amount wagered) in Illinois has been declining every month. States may reverse course if tax revenue drops significantly, though this is politically difficult. |
CNBC
Draftkings CEO on Super Bowl: 'We're expectin...
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