UK betting stocks rise on report of possible U.S. ban on sports bets on prediction markets

Shares in UK betting companies Flutter Entertainment and Entain spike higher; up 9% and 4.1% respectively; topping FTSE 350

Traders point to WSJ report that U.S. lawmakers are to introduce bipartisan bill banning sports bets on prediction markets

"It is fear of increased competition from prediction markets that has pushed prices down in recent times," said Greg Johnson, leisure equity analyst at Shore Capital.

Flutter Entertainment remains down 47% year to date, while Entain has shed 26%, as prediction market platforms have surged in popularity

"Any change to the regulatory environment that could see prediction markets be blocked for sports betting would clearly be seen as a positive for shares," Shore's Johnson said.