Sports-betting stocks rise as US senators propose ban on sports contracts in prediction markets

Shares of major sports-betting companies like DraftKings, Flutter Entertainment, MGM Resorts, and Penn Entertainment rose significantly after two U.S. senators introduced a bill aiming to ban sports event contracts on prediction markets. This move targets platforms like Kalshi and Polymarket, where a large portion of revenue comes from sports-related fees. The proposed legislation could reshape the sports betting and prediction market landscape, potentially benefiting traditional sports-betting firms. Investors reacted positively, driving up stock prices amid the news.