DraftKings (NASDAQ: DKNG) has had a difficult year, but October has the potential to be better. One reason is that investors have begun to turn their attention to prediction markets, a new category of potentially fast-growing business for the company. DKNG closed at $19.60 on October 5, a 5.43% increase from the previous day, after Bank of America (BofA) upgraded their rating to Buy. Prediction markets, in BofA’s opinion, could provide a significant earnings boost, making the investment a win-win scenario for the company.

DraftKings’ current operational state is better than what the stock price reflects. Customer acquisition and retention is strong, sports consumer volume is increasing, DraftKings’ sportsbook handle share is…