DraftKings (DKNG) Stock: Drops 8% After Wild Card Betting Revenue Falls 40%

TLDR

• DraftKings stock dropped 8% on Friday after New York sports betting revenue fell 40% during NFL Wild Card weekend compared to last year
• New York State Gaming Commission reported revenue of $37.3 million for the week ending January 11, down from $62 million a year earlier
• The NCAA requested federal regulators halt college sports betting markets until stricter national rules are implemented
• Competing prediction market platforms saw increased activity during Wild Card weekend, suggesting a shift in bettor behavior
• Wells Fargo upgraded DraftKings to “Overweight” with a $49 price target just one day before the decline

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DraftKings stock took a beating on Friday, falling 8% as troubling data emerged from what should have been one of the biggest betting weekends of the year. The decline came after New York State Gaming Commission numbers showed sports betting revenue cratered during NFL Wild Card weekend.

DraftKings Inc., DKNG

The commission reported gross gaming revenue of $37.3 million for the week ending January 11. That’s down roughly 40% from the $62 million recorded during the same period last year. The timing couldn’t be worse, as Wild Card weekend typically draws heavy betting action.

Piper Sandler analysts noted that all six NFL games during the weekend attracted substantial attention on prediction market platforms. Five of the top volume games this entire season happened during this Wild Card period. Yet traditional sportsbooks didn’t see the revenue windfall they expected.

The data points to a potential problem for DraftKings and its competitors. Bettors appear to be shifting their activity to alternative prediction market platforms. While these platforms saw increased usage, traditional sportsbook operators watched revenue decline.

Flutter Entertainment, which owns FanDuel, didn’t escape the carnage either. Its shares dropped 4% on the same news. The entire gaming sector felt the pain as investors reassessed the competitive landscape.

Regulatory Pressure Mounts

The revenue miss wasn’t DraftKings‘ only headache on Friday. The NCAA threw another wrench into the works by calling for federal regulators to halt college sports betting markets entirely.

In a letter to the Commodity Futures Trading Commission, the NCAA requested a complete stop to trading linked to college sports. The organization wants stricter national rules in place before these markets continue operating. This represents a major escalation in the NCAA’s fight against betting platforms that offer college sports action.

For DraftKings, this creates real regulatory uncertainty around a key market segment. College sports betting has become a meaningful revenue driver for the industry. A federal halt could force companies to rethink their growth strategies.

The move reflects growing concerns about the rapid expansion of college sports betting. The NCAA specifically cited worries about potential impacts on student-athletes as justification for its request.

Mixed Signals From Analysts

Just one day before the stock crashed, Wells Fargo had upgraded DraftKings to “Overweight” from “Equal-Weight.” The bank raised its price target to $49 from $31, suggesting a healthy upside from current levels.

The analyst’s bullish call came partly on news that Georgia lawmakers planned to introduce legislation legalizing sports betting. The proposed bill would allow up to 18 online sportsbooks in the state, opening a potentially lucrative new market.

That optimism proved short-lived. The combination of weak Wild Card revenue and NCAA regulatory threats overshadowed the positive Georgia news.

Other gaming stocks also declined on Friday. Caesars Entertainment fell 2.5%, while Wynn Resorts dropped 2%. MGM Resorts retreated 2%, and Las Vegas Sands declined 2.5%.

DraftKings shares are now down 8.3% year-to-date. The stock trades at $32.68, which is 38.9% below its 52-week high of $53.49 reached in February 2025. The company has experienced 22 price moves greater than 5% over the past year, making it one of the more volatile names in the gaming sector.

The New York State Gaming Commission data for the week ending January 11 showed revenue of $37,308,585, compared to $62,044,116 for the comparable week in 2025.

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