U.S. Digital Gaming: [Market] Making a Move

Research evidence excerpt

U.S. Digital Gaming: [Market] Making a Move

Equity Research

29 May 2026

U.S. Digital Gaming

[Market] Making a Move

We explore Market Making as an emerging vertical within

Prediction Markets. We size the ultimate opportunity for

DKNG/FLUT at around ~$1.8b in revenue or ~$500m in EBITDA U.S. Gaming, Leisure & Lodging POSITIVE

(each), mostly through combos (parlays), where they have a U.S. Gaming, Leisure & Lodging

clear edge in pricing capabilities. Brandt Montour, CFA

+1 212 526 9947

brandt.montour@barclays.com

We appreciate your 5-star vote in the 2026 Extel All-America Research Survey in Gaming & BCI, US

Lodging and Leisure as well as Quantitative Research (Data Science) categories. View our

Kristi Martiko, CFAanalysts » Vote 5 Stars for Barclays »

+1 212 526 7672

kristi.martiko@barclays.com

BCI, US

THE 2026 EXTEL SURVEY IS NOW OPEN Elizabeth Heffern

+1 212 526 3592

Support our industry-leading analysts with 5-Star elizabeth.heffern@barclays.com BCI, US

votes in this year’s Extel All-America Research William Wei

Survey +1yangjing.wei@barclays.com212 526 7591

Vote Now View Analysts Data Science & Applied AI

Fan Gao, CFA(v)

+1 212 526 8404

fan.gao@barclays.com

With DKNG/FLUT both pushing into market making on prediction markets, we provide here a BCI, US

deep look at that business vertical across Sports PMs, including scope, growth, margin, and

seasonality, with particular attention paid to combos (parlays), where DKNG/FLUT have a U.S. Brokers, Asset Managers &

Exchangesnatural edge, given sizable OSB parlay risk and trading infrastructure. We also rehash our

Benjamin Budish, CFA

prediction market framework/TAM, including key terminology/variables to understanding the

+1 212 526 2418

differences between PM and OSB. benjamin.budish@barclays.com