DraftKings

Wall Street declined Thursday amid concerns over AI stock valuations and a surge in corporate layoffs. Apple is reportedly in talks with Google to integrate Google’s AI into Siri, potentially costing Apple $1 billion annually. Despite solid sales, Costco shares dipped, with analysts scrutinizing its premium valuation. Disney replaced Penn Entertainment with DraftKings as ESPN’s official sportsbook partner, aiming to enhance its DTC business and boost engagement within the ESPN ecosystem.

DraftKings is acquiring Railbird to enter the predictions market with DraftKings Predictions, a CFTC-licensed platform. This move aims to diversify revenue beyond sports betting by offering event-based contracts across finance, culture, and politics. Challenges include navigating evolving regulations and potential conflicts with sports betting licenses in some states. DraftKings will likely target states without sports betting initially and leverage its KYC/AML expertise. The platform’s success depends on compliance, user experience, and appealing event offerings.