DraftKings Inc. shares climbed 7.5% to $26.04 in afternoon trading on Friday, outperforming broader equity benchmarks as the S&P 500 slipped 0.3%, the Dow Jones edged down 0.1%, and the Nasdaq declined 0.5%.
The advance followed two developments that reduced competitive pressure on licensed sportsbook operators. A Ninth Circuit court ruled that sports bets do not qualify as swaps under federal law, a decision that dealt a setback to prediction market operator Kalshi and diminished a potential regulatory threat to DraftKings’ core business.
Separately, the National Football League announced it had renewed its official sports betting partnerships with DraftKings, FanDuel, and Fanatics ahead of the 2026 season, which begins on September 9. DraftKings has held the status of official sportsbook partner and daily fantasy provider since 2019, while Fanatics enters as a third partner, replacing Caesars.
The NFL’s decision underscores the league’s preference for established, regulated sportsbook operators over unlicensed prediction markets. DraftKings’ stock remains well below its 52-week high of $48.78, reflecting broader challenges in the online sports betting sector despite the favorable regulatory and partnership developments.
