DraftKings and Flutter Jump After Court Rules Prediction Markets Are Gambling, Not Federally Regulated Trading

Shares of DraftKings Inc. and Flutter Entertainment plc rose following an August 28 Ninth Circuit Court of Appeals decision that classified sports-related contracts offered by prediction-market platforms as gambling products subject to state regulation rather than federal commodities law. DraftKings gained up to 10% while Flutter increased up to 8% on the ruling.
The court determined that sports event contracts are sports bets rather than swaps under federal commodity law, a distinction that de