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DraftKings and MGM shares rise as new bill threatens to ban sports gambling on Kalshi, Polymarket

It’s estimated that around 90% of Kalshi’s prediction-market fees revenue has been tied to sports in recent months.

Mar 23, 2026 &03012323202631; 19:01 UTC feeds.marketwatch.com Trending 3/5

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Neutral impact

Sentiment score: +15/100

Moderate impact Short-term (days)

WHAT THIS MEANS

DraftKings and MGM shares rose on news of a bill threatening to ban sports gambling on prediction markets like Kalshi and Polymarket, which could eliminate competition in the sports betting space. However, the market may have already priced in regulatory uncertainty, and the bill's passage is not guaranteed.

AI CONFIDENCE

65% High

SENTIMENT GAUGE

NEWS POWER SCORE

AFFECTED ASSETS

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DKNG

DKNGStock

Expected to rise

Reduced competition from prediction markets in sports betting; potential market share consolidation favoring licensed operators

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MGM

MGMStock

Expected to rise

Similar competitive advantage as DKNG; removal of unregulated sports betting alternatives benefits traditional gaming operators

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S&P 500

^GSPCIndex

High volatility expected

Minimal broad market impact; sector-specific benefit to gaming stocks offset by regulatory uncertainty concerns

PRICE HISTORY

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⚡ SUGGESTED ACTION

While the headline appears bullish for DKNG and MGM, exercise caution: regulatory bills frequently fail to pass, and the market may have already incorporated this scenario. Wait for concrete legislative progress before establishing positions; current rally may represent a sell-the-news opportunity.

KEY SIGNALS

Regulatory threat to unregulated prediction marketsPotential competitive moat expansion for licensed operatorsBill passage uncertain; political risk remainsMarket may have already priced in regulatory headwindsKalshi's 90% sports revenue concentration creates vulnerability

SECTORS INVOLVED

Gaming & CasinosSports BettingFinancial Services

Analysis generated on Mar 23, 2026 at 19:38 UTC

Disclaimer: This analysis is generated by artificial intelligence for informational purposes only and does not constitute financial advice, investment recommendation, or solicitation. Original reporting by MarketWatch. Always conduct your own research and consult a qualified financial advisor before making investment decisions.

DraftKings and MGM shares rise as new bill threatens to ban sports gambling on Kalshi, Polymarket

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