DraftKings and Flutter Entertainment both stumbled on Tuesday (November 4) after Bank of America (BofA) issued downgrades for the two online betting heavyweights, warning that the gambling industry is under pressure from several directions, including the growing influence of prediction markets.

DraftKings dropped about 5% in early trading after BofA lowered its rating from “Buy” to “Neutral.” Analyst Shaun Kelley also cut the price target from $48 to $35, citing a mix of problems such as recent sports outcomes that let bettors win more than usual (and dented profits), DraftKings’ lagging performance in iGaming, and the possibility of higher state-level taxes. Prediction markets, he added, could become a near-term drag as well.