Citizens says Kalshi pricing worse than sportsbooks in week 17

Citizens analyst Jordan Bender tracked odds across the slate of NFL games in week 17 for Flutter Entertainment’s (FLUT) FanDuel, DraftKings (DKNG), and Kalshi for money-line bets and over/unders. Kalshi’s pre-game odds across the games had 8% worse pricing compared to FanDuel and 6% worse than DraftKings when adding in the transaction fee, the analyst tells investors in a research note. However, the firm adds that DraftKings Predictions pricing is “significantly worse” than its own sportsbook and Kalshi with game outcomes at 8% across all its offerings versus 4.28% for its sportsbook. Citizens continues to believe that betting exchanges do not act as a competitive threat to sports betting profitability for existing operators DraftKings, Flutter, MGM Resorts (MGM), Caesars Entertainment (CZR), Penn Entertainment (PENN) and Rush Street Interactive (RSI). Bettors that are not price sensitive have a larger betting menu on the traditional betting apps, and the price-sensitive customers are not getting superior pricing for the most liquid sports markets on Kalshi, according to Citizens.