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Shares of DraftKings and Flutter Entertainment rose after a court ruled that prediction markets should be classified as gambling rather than federally regulated trading products. The ruling has significant implications for the burgeoning prediction-market industry, potentially subjecting it to state-level gambling regulation rather than federal oversight. Separately, industry observers note that prediction markets are becoming increasingly professionalized, with sophisticated trading firms and institutional players entering the space. Experts say this institutionalization threatens to erode the edge once enjoyed by individual skilled traders who profited from market inefficiencies and mispricing, even as the sector's regulatory status remains in flux following the gambling ruling.