DraftKings shares rose as much as 10% intraday on August 28 after the Ninth Circuit Court of Appeals ruled that Nevada could enforce its gaming laws against Kalshi’s sports-related event contracts, which the court treated as gambling rather than federally regulated swaps overseen by the CFTC. The stock closed up 4.29% below $25, although it remained nearly 50% lower over the past year and more than 50% below its early-2025 peaks. The ruling may reduce prediction markets’ advantage over licensed sportsbooks, while DraftKings is also expanding its own DKeX business, launched in June 2026 after the Railbird Technologies acquisition, with its Predictions platform operating in 18 states. The broader legal dispute remains active, and investors are monitoring whether DKeX can challenge Polymarket and Kalshi while creating opportunities in states where sportsbooks are unavailable.