Flutter and DraftKings Combined Value Falls Below Kalshi's Estimated Valuation

The market value of publicly traded betting companies has fallen by roughly half over the past ten months. The combined value of Flutter, DraftKings, MGM Resorts, PENN Entertainment and BetMGM, of which MGM Resorts owns half, dropped from about $67 billion at the end of 2025 to $33.52 billion. Over the same period, the S&P 500 rose 12.2 percent.

The companies' revenues are still above where they were a year earlier. However, investors are no longer willing to pay as much for each dollar of that revenue. Flutter's ratio of market value to sales fell to 0.81 times 2025 revenue, and DraftKings' to 1.69 times, down from 2.23 times and 2.81 times at the end of the year.

The decline in profitability is sharper. Flutter's second-quarter adjusted EBITDA fell 45 percent to $508 million, and the company reported a net loss of $296 million. Flutter cut its full-year revenue expectation by $395 million and its EBITDA expectation by $210 million. Entain's Brazilian revenues also fell 36 percent in the third quarter.

What stands out in this picture is that a large share of capital is now flowing to Kalshi, whose business model depends on court proceedings in the United States, rather than to betting companies. Chad Beynon of Macquarie Capital said that some parts of the sector have seen a genuine deterioration in expectations.