The rapid expansion of sports prediction markets is hurting DraftKings Inc., according to the stock’s only bear on Wall Street.

BNP Paribas started coverage on the sports betting company Thursday with the stock’s only sell-equivalent recommendation, flagging the “dramatic threat” of Kalshi Inc. and Polymarket over the last year. The risks loom even though DraftKings rolled out its own prediction market app in December, said analyst Charlie Muir-Sands in a note to clients.