DraftKings Stock Rises 3.8% on Bill to Ban Prediction-Market Sports Bets
DraftKings shares jumped 3.8% after senators introduced a bipartisan bill to ban sports-betting contracts on prediction markets, curbing competition from Kalshi and Polymarket. Call options volume doubled intraday with the April 27.50 and weekly March 26-strike calls most active as the stock tests its descending 40-day moving average.
1. Senate Bill Details
U.S. Senators Adam Schiff and John Curtis introduced a bipartisan bill to prohibit prediction-market operators from listing sports-betting and casino-style event contracts, targeting platforms like Kalshi and Polymarket that have captured market share from traditional sportsbooks.
2. Stock Reaction
DraftKings shares surged 3.8% on the bill’s introduction and are testing their descending 40-day moving average, though the stock remains down 28.6% year-to-date after falling 13.5% post-earnings on February 13.
3. Options Activity
Options traders exchanged over 25,000 calls—double the average intraday volume—with the April 27.50 call and the weekly March 26-strike call most active, while DraftKings holds a Schaeffer’s Volatility Scorecard rating of 95 out of 100.