DraftKings shares rose 7.5% to $26.04 in afternoon trading, trimming a portion of the decline from its 52-week high of $48.78.
The advance followed two key developments: a Ninth Circuit court decision that sports bets do not qualify as swaps under federal law, and the National Football League's renewal of official sports betting partnerships with DraftKings, FanDuel, and Fanatics ahead of the 2026 season.
DraftKings retained its status as an official sportsbook partner and daily fantasy provider, a role it has held since 2019. Fanatics entered the partnership as a third operator, replacing Caesars. The NFL season is scheduled to begin on September 9.
The court ruling weakened a legal challenge from prediction market operator Kalshi, reducing competitive pressure on licensed sportsbook operators. Sector peer Flutter Entertainment, which owns FanDuel, also advanced on the news.
The broader market showed limited gains, with the S&P 500 down 0.3%, the Dow Jones slipping 0.1%, and the Nasdaq falling 0.5%.
