DraftKings Stock Plunges on Regulatory Headwinds as $620M Volume Ranks 195th in Market Activity

On October 6, 2025, DraftKings (DKNG) closed with a 1.10% decline, marking a 22.24% drop in trading volume to $620 million, ranking it 195th in market activity. The stock’s muted performance reflected broader market dynamics and sector-specific headwinds.

Recent developments highlighted regulatory scrutiny in key markets, with ongoing legal challenges in New York and New Jersey impacting investor sentiment. Analysts noted that unresolved compliance issues could delay expansion plans, limiting revenue visibility for the upcoming quarter. Additionally, a shift in consumer spending toward traditional entertainment sectors reduced short-term demand for digital betting platforms.

Strategic partnerships with sports leagues faced delays due to internal restructuring, raising questions about operational efficiency. While the company announced a revised product roadmap, stakeholders emphasized the need for clearer execution timelines to rebuild confidence. Competitive pressures from established rivals in the online gaming space further constrained growth expectations.

To ensure the back-test matches your intent and can be executed smoothly, could you please confirm a few key details? 1. Universe of stocks: All U.S. common stocks (≈4,000 tickers), or a specific subset (e.g., S&P 500 constituents)? 2. Ranking logic and timing: Rank stocks by the previous trading day’s dollar trading volume (price × shares), or by share turnover? Trade execution: Enter at next day’s market open? Exit at that day’s close (i.e., 1-day holding period)? 3. Portfolio construction: Equal-weight the 500 names each day, or weight by volume? Rebalance daily (i.e., full turnover every day). 4. Frictional costs: Commission/slippage assumption (e.g., 2 bp per side), or ignore fees? With this information I can set up the data pulls, calculate the daily trade lists, and run the back-test from 2022-01-03 through today.