Bank of America downgrades gambling stocks, citing threat from prediction markets

Bank of America on Tuesday downgraded gambling stocks DraftKings and FanDuel owner Flutter Entertainment , warning that online sports betting faces a rocky road ahead as competition from prediction markets grows and regulatory uncertainty mounts. BofA cut its rating for DraftKings and Flutter from buy to hold and slashed its price targets for the stocks by 23% and 27%, respectively. The bank now has a price of $250 per share for Flutter, suggesting 8% upside from Monday's close. It sees DraftKings hitting $35 per share, indicating about a 14% gain from current levels. Polymarket is poised to return to the U.S. as soon as late November with a focus on sports betting, people familiar with the matter told Bloomberg News late last month. Low barriers to entry and large fundraising valuations f