Kelley noted that Kalshi's parlay offering still falls short of the variety of parlay options given by traditional sports books. He added that sports prediction markets have $1.3 trillion in "'available' volume," But the analyst defended the longer-term case for DraftKings and Flutter, noting OSBs could remain untouched from the competition. If the current regulatory gap remains between both industries, Kelley said he expects DraftKings and Flutter will enter the prediction market space — potentially beginning with some of the 21 states they do not operate in. "Investors in OSB are rightly concerned about competition from PMs, but the math shows there is substantial room for PMs to grow without having any impact on the existing public-company OSB landscape," Kelley wrote. "Beyond state regulation, we believe there is a strong moat for existing OSB operators that have invested billions of dollars in 1) product, 2) technology, and 3) customer acquisition and retention," he added.