DraftKings (DKNG) stock inched higher on Monday after U.S. senators introduced a bipartisan bill to ban sports-related contracts on prediction markets like Kalshi and Polymarket. DKNG is now hovering just below its 20-day moving average (MA). A decisive break above the $24.62 level may accelerate bullish momentum in the weeks ahead.

Despite today’s surge, DraftKings stock remains down about 30% versus its year-to-date high.

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The legislation introduced by Senator Adam Schiff and Senator John Curtis aims to prohibit CFTC-regulated prediction markets from offering wagers on sports and casino-style games.

It’s a win for DKNG shares because it closes a regulatory backdoor that allowed platforms like Kalshi and Polymarket to offer sports betting without the heavy tax burdens and licensing requirements traditional sportsbooks face.

By forcing these competitors out of the sports arena, lawmakers are effectively protecting the market share of established, tax-paying operators like DraftKings.

In short, investors see this development as a moat-strengthening event that secures DKNG’s pricing power and customer base.

Despite poor year-to-date performance, Citizens recommends owning DraftKings shares, suggesting they could rally sharply to $38 by the end of this year.

The firm’s analysts cited competitive pricing, especially during the high-volume March Madness windows, for their constructive view on the Nasdaq-listed firm.

In the research note dated March 23, they highlighted that DraftKings is on a clear path to annual profitability in 2026, supported by a 27% year-on-year revenue increase.

At about 2x sales, the current dip represents a buying opportunity for those interested in holding DKNG for the long-term, Citizens concluded.

What’s also worth mentioning is that DraftKings has a history of closing April with over 4% gains, a seasonal pattern that makes it even more attractive to own in the near-term.

Note that Citizens isn’t the only Wall Street firm that’s keeping bullish on DraftKings for the next 12 months.

The consensus rating on DKNG stock currently sits at “Strong Buy,” with the mean target of about $35 indicating potential upside of nearly 45% from here.

On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com