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After years of fighting for legal sports betting, FanDuel and DraftKings are now facing unforeseen competition in the form of prediction markets—platforms that let users bet on the outcome of a plethora of events. WSJ sports reporter Jared Diamond explains how that’s led to a bitter rivalry ahead of the Super Bowl. Plus, WSJ markets reporter Sam Goldfarb explains why software stocks are declining in an AI-dominated tech market.

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