Investing.com -- Bank of America lowered its second-quarter earnings estimates for DraftKings (NASDAQ: DKNG) and Flutter Entertainment ahead of their upcoming earnings reports scheduled for early August.

Flutter Entertainment is scheduled to report earnings on August 5, followed by DraftKings on August 6. Bank of America reduced its second-quarter EBITDA estimate for FanDuel to $110 million, compared to the Street's $113 million estimate. The firm also lowered its DraftKings second-quarter EBITDA estimate to $120 million, down from the Street's $173 million estimate.

The bank reduced its 2026 EBITDA estimate for DraftKings to $625 million from $700 million. The lower estimate reflects unfavorable hold in the second quarter and slightly higher prediction market investment than DraftKings' approximately $250 million guidance.

Total prediction market volume surpassed $40 billion in June, compared to online sports betting handle of approximately $12 billion. Bank of America estimates prediction market consumer volume reached approximately $10 billion in June, or about 85% of online sports betting handle.

Kalshi's active users were 13% lower than FanDuel's in July and approximately 21% lower than DraftKings' in the same period. The percentage of DraftKings users who also use Kalshi was 9.5% in June, up from 4% in January.

Bank of America's 2026 EBITDA estimate for FanDuel of $634 million remains below Flutter's guidance midpoint of $970 million. The firm maintained its neutral rating on both DraftKings and Flutter Entertainment.