Spruce Point warns DraftKings shares could fall to $14
Short seller Spruce Point Management said DraftKings shares could fall to between $14 and $22, citing competition from prediction markets. It estimated further downside of 35% to 60% and said operators face uncertainty while state litigation continues; Arizona and Ohio regulators have warned that prediction-market activity could put sports betting licences at risk.
The warning flags potential competitive and licensing risks for sports betting operators considering prediction markets.