Prediction markets have forced the gambling industry to take drastic action. While headlines often focus on Kalshi or PolyMarket users betting on politics or economics, more than 80% of activity still happens in sports markets, and that’s bad news for incumbent sportsbooks. Plus, prediction markets aren't just eating share; they also get preferential tax and legal treatment from the federal government, while traditional sports betting remains under the eye of state gambling commissions.
With the deck now stacked against them for a change, sportsbooks and casinos have been offering promotions to lure back wayward gamblers. And we aren’t just talking about the parlay boosts you see Kevin Hart hawking every Sunday. Gambling companies are spending millions of dollars on marketing and promotion, and as you might expect from a mature industry, the results are mixed. Flutter Entertainment PLC (NYSE: FLUT), Las Vegas Sands Corp. (NYSE: LVS), and Penn Entertainment Inc. (NASDAQ: PENN) each took a different approach to promotion, and their 2026 stock performance shows which strategy the market is rewarding.
