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- A new Benzinga viewer poll suggests investors and industry watchers are largely unbothered by the competitive threat prediction markets pose to traditional sportsbooks, with only 17% of respondents believing platforms like Kalshi and Polymarket will render companies like DraftKings and Flutter “toast”.
- Instead, the majority of the 116 viewers polled believe that established sports betting operators will adapt to the pressure or that the two sectors will eventually merge into a single, consolidated industry.
Prediction markets are putting more competitive pressure on DraftKings and Flutter, but a new Benzinga viewer poll suggests most respondents are not yet ready to write off traditional sportsbook operators.
Benzinga reported that in a poll of 116 viewers conducted on Oct. 5, only 17% said prediction markets would make DraftKings and Flutter “toast.” Larger shares said sportsbooks will adapt (28%), the sectors will merge (22%), or that it is too early to tell (32%).
That matters because prediction market operators such as Kalshi and Polymarket are increasingly being discussed as rivals to online sportsbooks, especially in the U.S., where these products can be offered in some states that do not allow legal sports betting.
Poll results point to uncertainty, not a clear winner
The Benzinga report framed the poll as a snapshot of how investors and gambling-industry watchers view the growing overlap between prediction markets and sportsbooks. While the most bearish outcome for sportsbook stocks drew attention, the larger takeaway was that a majority of respondents did not say DraftKings and Flutter face extinction.
Benzinga also noted that Coinbase Global and Robinhood Markets have highlighted growth in prediction markets for their users, adding to the sense that the category is expanding beyond a niche product.
Another important detail for operators: prediction markets are not limited to sports. They can also cover non-sports events, potentially widening their appeal and putting them in competition with gambling products on more than one front.
DraftKings and Flutter are already responding
According to Benzinga, both DraftKings and Flutter have already launched their own prediction market products in the U.S. The report said traditional sportsbook operators may have little choice but to keep offering these products while competing with category leaders.
The market backdrop has also been rough. Benzinga said DraftKings stock was down 44.4% year to date in 2026, while Flutter stock was down 65.1% year to date in 2026. DraftKings had recently hit its lowest level since April 2023, and Flutter was trading near its March 2020 lows, according to the report.
Benzinga said the next phase for the sector could include further consolidation between sportsbook companies and prediction market firms. That remains speculative, but it is one of the clearer developments to watch as the two categories move closer together in the U.S. market.
Source: As reported by Chris Katje.
