Sports betting firms see gains from World Cup, but long-term worries linger

Big-name sports betting companies are seeing a temporary lift from the FIFA World Cup, but their long-term health remains shaky. DraftKings and Flutter Entertainment, two of the biggest players in U. S. sports betting, have watched their stock prices climb lately thanks to the tournament’s massive betting volume. Americans are expected to bet around $4. 4 billion on this World Cup—more than double the $1. 8 billion wagered in 2022. That’s great news for these companies, since they’ve been struggling with slowing revenue growth over the past year.Yet their stocks still haven’t recovered to past heights. DraftKings is down 45% from its peak, while Flutter has dropped 65%. Investors are clearly nervous about whether this World Cup boost will last. Even with the extra betting activity, analysts predict only modest revenue growth—around 12% for both companies this year. That’s a far cry from the explosive growth they once saw. A bigger threat might be popping up outside traditional sportsbooks. Prediction markets like Polymarket and Kalshi are gaining traction, offering a different way for people to bet on events. These platforms let users wager on outcomes without the same regulations as sportsbooks, which could pull customers away. Experts think this competition will limit how much DraftKings and Flutter can grow, even during big events like the World Cup.