Roundhill Financial said its BETZ exchange-traded fund will track the Morningstar Sports Betting & iGaming Select Index from the close of trading on 29 September. The fund is due to begin trading against the new index on 2 October; Roundhill expects limited initial changes to its holdings.
The index change alters the benchmark used by investors seeking exposure to sports betting and iGaming stocks.
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Online Poker Report cited a Benzinga poll of 116 viewers on 5 October in which 17% expected prediction markets to displace DraftKings and Flutter. Respondents predicting sportsbook adaptation accounted for 28%, while 22% expected consolidation between the sectors and 32% considered a verdict premature.
Reportedly, Macquarie lowered its price targets on DraftKings to $34 from $38 and on Flutter Entertainment to $128 from $150 ahead of third-quarter earnings. Analyst Chad Beynon kept a positive overall view of the sports betting sector, forecasting 6% growth in online sports betting gross gaming revenue and 18% growth in iGaming.
DraftKings shares touched $18.55 on Thursday before closing at $19.35, marking their lowest level in more than three years. Flutter shares also declined. The report linked investor concerns to weaker quarterly earnings, promotional spending and competition from prediction markets.
Fanatics could increase its sports betting advertising spending to $1bn in the USA, citing chief executive Michael Rubin's comments to Bloomberg. The report describes the potential spending as part of an effort to challenge DraftKings and FanDuel.
Genius Sports chief executive Mark Locke said prediction-market activity could create opportunities for traditional betting suppliers even if regulation changes the sector. He said demand for sports wagering would persist, while the article reports that Kalshi’s retail demand was concentrated in states without online sportsbooks, citing July figures from Eilers & Krejcik.