The flagship ARK Innovation ETF (NYSE: ARKK) of Cathie Wood has entirely divested its shares in Draft Kings (NASDAQ: DKNG), signalling a final departure from the sports betting behemoth. As the company increased its holdings in space, semiconductor, and artificial intelligence (AI) stocks, the gaming stock was one of nearly a dozen positions that were decreased or eliminated across ARKK and two other ETFs of the asset manager in the first half of 2026.

Draft Kings stock was quickly adopted by Wood's firm in early 2021, soon after its initial public offering (IPO), making the $7.26 billion ARKK and two other ARK Invest funds among the earliest ETF investors. At various points in the history of Draft Kings as a public company, ARK was among the top 10 institutional shareholders of the gambling stock. '

ARK, which began purchasing Draft Kings stock in February 2021, mostly offers ETFs that are actively managed, including ARKK. As a result, it's possible that the sports betting equity may be included in that ETF once more in the future. ARKK Is full of conjecture Exposure to the market

ARKK Has Plenty of Prediction Market Exposure

Although fund managers are not required by regulatory regulations to explain individual trades, a lot of well-known investors "talk their books" frequently. However, ARK Invest has not said anything about this action, nor has it explained why Draft Kings was eliminated from its major portfolio.

ARKK has substantial exposure to the bigger betting ecosystem via prediction markets, depending on one's definition of gambling. For example, the ETF's top 10 assets include positions for Coinbase Global (NASDAQ: COIN) and Robinhood Markets (NASDAQ: HOOD), two significant access points for event-contract volume.

ARK is a significant supporter of Kalshi, having participated in a number of recent financing rounds for the prediction market leader, including its enormous $1 billion Series F. Kalshi remains privately held, yet it is among the top ten allocations in the actively managed, closed-end ARK Venture Fund, in addition to public equities.

Although ARK's research highlights the structural optimism around event contracts, the company has not expressly turned against conventional sports gambling. Ironically, Draft Kings itself is aggressively expanding its presence into the prediction market sector, which is why the main fund is divesting at this time.

DraftKings Still in Some ARK ETFs

Some ARK ETFs continue to include Draft Kings. According to data from the ETF Research Center, almost 150 ETFs hold shares of Draft Kings. ARKK is not among them, as previously stated, but two other ARK ETFs still have shares in the betting firm.

The ARK Blockchain & Fintech Innovation ETF (NYSE: ARKF) had a nearly 2% stake in the gaming stock, while the $1.81 billion ARK Next Generation Internet ETF (NYSE: ARKW) had 1% of its lineup dedicated to Draft Kings as of today. Similar to ARKK, these ETFs are actively managed, allowing fund managers to increase or decrease their exposure to Draft Kings (and other equities) as they see fit.