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Stock impact report

Kalshi's Combo Event Contracts Raise Prediction Market Stakes [Yahoo! Finance]

DraftKings Inc. - Class A (DKNG) 
Company Research Source: Yahoo! Finance
Key Takeaways Kalshi expanded its combo event contracts to all users, allowing multiple outcomes in one contract that mirrors sportsbook parlays. The product strengthens Kalshi's revenue potential and first-mover advantage as FanDuel, DraftKings, and Fanatics race to launch similar offerings. The expansion comes amid escalating legal challenges, with states arguing sports event contracts are illegal gambling subject to regulation. Kalshi combos allow users to stack multiple outcomes within a single event contract. These combined bets offer customers higher payouts if all outcomes are correct, but results in a loss for the user if any are unsuccessful. These replicate sportsbooks' parlays, which have higher profit margins than traditional straight bets and constitute an increasing percentage of operators' revenue. Despite the lower success probability, customers continue to flock to these bets, drawn by the potential to turn small wagers into large payouts. By offering com Show less Read more
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