0929 ET - DraftKings' new prediction markets will initially feature culture, finance and entertainment--but sports, the real moneymaker, is coming, say Oppenheimer analysts. Regulators in online sports-betting states have threatened to pull licenses if sportsbooks enter prediction markets, while states are suing Kalshi, alleging its prediction markets are a form of illegal sports betting. But "we believe gaming commissioners would ultimately be hesitant to shut down the category leading operators based on the significant tax revenue they generate," the analysts say. If Kalshi gets favorable rulings in its court battles, it is possible DraftKings may have sports-prediction markets in unregulated states by year end, the analysts say. (nicholas.miller@wsj.com)

(END) Dow Jones Newswires

October 22, 2025 09:29 ET (13:29 GMT)

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