DraftKings stock falls 6% on Senate bill threatening its sports betting growth product

DraftKings stock dropped 6% after a proposed bipartisan Senate bill threatened its Predictions platform, a key growth driver regulated under CFTC. The bill would impose strict limits on event contracts used for sports betting outcomes, directly impacting DraftKings' expansion plans. Meanwhile, Penn Entertainment's stock remained flat due to its limited exposure to prediction markets and strong performance in traditional sportsbook and casino operations. The bill introduces regulatory uncertainty for DraftKings, which had strong 2025 revenue growth and positive net income, but now faces legislative risk that could affect its valuation and future growth prospects. Analysts remain cautiously optimistic but will watch closely for further developments on the bill's progress.