DraftKings' Volume Dives to 391st as Tax Burdens and Fierce Competition Cloud Growth Prospects

DraftKings (DKNG) closed at -0.89% on Sept. 9, 2025, . equities by volume. Analysts highlight growing uncertainty over the company’s financial trajectory amid regulatory and competitive pressures.

A downgrade of DraftKings’ stock rating has emerged due to concerns over a newly introduced "phantom tax" under the Big Beautiful Bill. The tax, which requires operators to pay a per-wager levy, has raised questions about its impact on profitability. Operators like DraftKings have already begun passing costs to customers through surcharges, . , the tax’s long-term effects on market competitiveness remain unclear.

Domestic market challenges further weigh on the stock. DraftKings faces declining U.S. online sports betting market share amid intensifying competition from established rivals and new entrants. International expansion efforts also face hurdles, including regulatory bans in states like Texas. .

CEO has acknowledged the risks posed by prediction markets, which could draw users away from traditional sports betting. While DraftKings adopts a cautious approach to entering this space, competitors like and are advancing regulatory approvals. Robins has hinted at potential acquisitions of pre-approved exchanges rather than building new platforms from scratch, reflecting strategic flexibility amid regulatory ambiguity.

To build an implementable back-test, key parameters must be defined: market universe (e.g., S&P 500 vs. broader U.S. equities), weighting method (equal-weight vs. volume-proportional), execution price (close-to-close or open-to-close), and cash management (fully invested vs. Treasury bills). Once finalized, the back-test can be executed from Jan. 1, 2022, to assess performance metrics.