Shares of sports-focused firms declined in Wednesday's after-hours session following a New York State bill seeking to ban sports-related prediction markets for residents.
Sports Stocks Feel The Pinch
Genius Sports, which provides services for sports leagues and betting partners, fell nearly 3% after-hours. Similarly, shares of companies involved in sports betting, including DraftKings and Flutter Entertainment, also came under pressure, declining by 0.79% and 4.26%, respectively.
| Stock | After-Hours Gains % +/- | Price (Recorded at Wednesday’s Close) |
| Genius Sports Ltd. (NYSE:GENI) | -2.91% | $10.30 |
| DraftKings Inc. (NASDAQ:DKNG) | -0.79% | $31.51 |
| Flutter Entertainment PLC (NYSE:FLUT) | -4.26% | $234.45 |
A Blow To Sports Betting?
The sell-offs could be linked to a recent New York State legislation that aims to prohibit sports-related and event-based betting on platforms like Kalshi.
The bill, also known as the ORACLE Act, proposes to ban several categories of markets for New York users, including wagers based on "catastrophic” events like wars and disasters, politics, deaths, securities and “athletic” events.
The bill seeks to ban betting on individual events or incidents within a larger sporting event, while predictions relating to the overall winner of a sports tournament will be permitted.
The enforcement of this act would come under the state’s General Business Law, not just the New York State Gaming Commission, according to a Forbes report. The sponsors of the bill view it as a consumer-protection measure, aimed at regulating emerging platforms that blend financial trading with gambling mechanics, which have outpaced current oversight.
See Also: Kalshi’s Trojan Horse: How The Prediction Market Leader Is Inching Further Into DeFi
What’s The Future Of Prediction Platforms In US?
Prediction markets have emerged as one of the hottest new narratives for finance in 2025.
Kalshi, a federally-regulated prediction market, recently hit a $5 billion valuation after raising $300 million. Polygon (CRYPTO: POL)-based Polymarket, on the other hand, is vying to re-enter the U.S. market following a $2 billion investment from New York Stock Exchange owner Intercontinental Exchange Inc. (NYSE:ICE) last month.
Jason Trost, founder of Europe-based prediction market Smarkets, said that “we’re in the middle of a hype cycle” during Benzinga Fintech Day & Awards 2025.
Michael Zolla from TradingView highlighted the significance of social intelligence behind this phenomenon, adding that there is potential to become a data aggregator.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
