Gambling stocks shrink as Kalshi’s reported valuation overtakes four listed groups

Four listed gambling groups—Flutter, DraftKings, MGM Resorts and PENN—have lost about half their combined market value in ten months, according to iGaming Express. The outlet estimated their aggregate value at 33.52 billion dollars, down from about 67.0 billion dollars at the end of 2025.

That decline places their combined public-market value below the roughly 40 billion dollars at which private exchange Kalshi was reportedly raising capital. The comparison highlights a valuation gap, although a reported private fundraising valuation is not the same measure as listed companies’ market capitalisation.

Valuations diverge as contract trading expands

The iGaming Express report, published on Oct 31, 2026 at 2:45 PM ET, also put prediction-market contract trading at 118.9 billion dollars over the 30 days to October 26.

Kalshi accounted for about 76 percent of that activity, according to the outlet. That share gives the exchange a dominant position within the trading total cited in the report.

The figures describe two distinct developments: a sharp reduction in the listed gambling groups’ combined equity value and substantial trading activity in prediction markets. The supplied reporting does not establish that one caused the other, or provide individual valuation changes for the four listed businesses.

What it means for prediction markets

• Kalshi’s reported valuation is a notable benchmark: At about 40 billion dollars, it exceeds the four gambling groups’ combined 33.52 billion dollars, but remains a reported fundraising valuation rather than a public-market price.
• Trading activity is concentrated: Kalshi’s roughly 76 percent share makes its performance central to interpreting the reported 118.9 billion dollars in contracts traded.
• Volume and equity value need separate interpretation: Contract trading measures activity, not revenue or company value. The figures alone do not explain the gambling groups’ market losses.