Competition And Market Share PressureAnalyst warns that intensifying competition in prediction markets and new entrants could force heavier investment, pressure near-term results, and risk drawing activity away from the sportsbook and iGaming business.
Conservative Guidance And VisibilityAnalyst indicates that a conservative guidance reset reduces visibility on near-term returns and increases reliance on clear execution and scaling of the Predictions product to improve investor confidence.
Regulatory And Unit Economics UncertaintyAnalyst points to the need for clearer disclosure on prediction market unit economics and flags state tax or regulatory proposals as potential headwinds that could weaken profitability and sentiment.