DKNG

Sportsbook operators have absorbed some of the biggest selling in the gambling group across 2026, and the pressure has landed hardest on the pure-play names.

Jefferies has cut its 2026 adjusted earnings forecast for Draftkings Inc (NASDAQ:DKNG), the US sports betting and online gaming company, by 15% as increased spending on prediction markets and slower iGaming growth weigh on near-term profitability. The broker expects DraftKings to incur an additional $100 million in prediction market expenses during the second half of 2026, taking total spending above its initial guidance of $200 million to $300 million.

DNNG's shares plunge 22% in a month as rising investment costs, earnings estimate cuts and regulatory uncertainty raise questions about whether to buy the dip.

The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price.

DraftKings' Super App expands its reach beyond Sportsbook states, with strong early Predictions adoption, lower acquisition costs and new growth opportunities.

Prediction markets have forced the gambling industry to take drastic action. While headlines often focus on Kalshi or PolyMarket users betting on politics or economics, more than 80% of activity still happens in sports markets, and that's bad news for incumbent sportsbooks.

A Bank of America (NYSE:BAC | BAC Price Prediction) analyst who kept the firm on the sidelines for a year has turned bullish, arguing that Wall Street estimates for DraftKings (NASDAQ:DKNG) are bottoming.

DraftKings (DKNG) reached $19.15 at the closing of the latest trading day, reflecting a -3.04% change compared to its last close.

DraftKings' iGaming business shows signs of recovery as market share stabilizes, customer acquisition improves and new products gain traction.

Emphasis on regional gaming assets reduces tenant performance volatility, insulating GLPI from Las Vegas tourism slumps while supporting resilient performance metrics. GLPI's robust fundamentals, discounted Price/AFFO of 9.12x, and dividend yield of 8.70% create compelling return prospects. Risks include the higher borrowing costs environment, GLPI's seasonally weaker trading months through October, and mixed optics from VICI tenants' take-private/merger negotiations.