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Stock impact report

Prediction Markets Are Upending U.S. Gambling: What It Could Mean For Non-Investment Grade Credit [Seeking Alpha]

DraftKings Inc. - Class A (DKNG) 
Company Research Source: Seeking Alpha
Federal regulation of these markets has allowed their operation in all 50 states, including the roughly 20 states covering half of the U.S. population that have no or limited online sports betting. In the meantime, this nearly instantaneous nationwide legalization of a gambling-adjacent product threatens to disrupt existing gambling markets. tumsasedgars/iStock via Getty Images A 2024 court ruling allowed prediction markets to operate as federally regulated event contract exchanges. With nationwide reach, these products are pressuring state-regulated sports books, lotteries and casinos - raising new considerations for non-investment-grade issuers and investors. This article was written by Quick Insights Kalshi's federal regulation enables nationwide prediction markets, eroding state control and introducing competition in jurisdictions previously insulated from legal gambling alternatives. DraftKings and FanDuel are investing hundreds of millions to launch prediction mar Show less Read more
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