DraftKings is preparing to intensify its push into prediction markets after reporting mixed second-quarter results. CEO Jason Robins used the company’s Q2 earnings call to outline plans for competing with fast-growing prediction platforms such as Kalshi and Polymarket as the US market enters a potentially pivotal period this autumn.
DraftKings recently launched DKeX, its proprietary prediction market exchange, while integrating prediction products into its broader sports offering. Unlike Kalshi and Polymarket, DraftKings combines prediction markets with a traditional online sportsbook, giving it access to an established customer base and a broader sports ecosystem.
DraftKings Challenges Prediction Market Rivals
During an appearance on CNBC’s Squawk Box, Robins welcomed competition from Kalshi and Polymarket but challenged some of the narratives surrounding their business models. He argued that claims suggesting prediction platforms have little incentive to see customers win or lose could undermine trust in the wider industry.
Robins also pointed to the role of institutional market makers, noting that recreational users can face sophisticated counterparties equipped with advanced quantitative tools.
Meanwhile, Kalshi continues to lead the prediction market race. The company recorded $39.7 billion in annualised trading volume so far in 2026, highlighting the scale of the challenge facing DraftKings.
Predictions Become Key Growth Opportunity
DraftKings reported $1.99 billion in sports revenue for Q2, up nearly 6% year-on-year. However, the company did not separately disclose prediction market revenue after combining sportsbook, retail sportsbook, and prediction results into one segment.
The company said around 600,000 customers have used its prediction platform since the start of the year. Robins expects the upcoming football season to provide another major opportunity to attract users and increase engagement.
DraftKings also recorded 3.6 million average monthly unique players, up 9.1% from the previous year. However, the FIFA World Cup contributed significantly to the increase.
Mixed Earnings but Strong Investor Response
DraftKings reported Q2 revenue of $1.44 billion, down $69.3 million year-on-year. The company attributed the decline to customer-friendly sports results and increased promotional spending. Adjusted diluted EPS reached $0.09, below analysts’ $0.22 consensus.
Nevertheless, investors focused on the company’s prediction market opportunity, sending DraftKings shares up 8% to $24.03 on Friday.
DraftKings continues to face strong competition, with both DraftKings and Flutter down more than 20% year-to-date. However, Robins remains confident ahead of the NFL season, saying the company plans to expand its “super app” with new prediction products.
With its core sportsbook performing strongly and prediction markets gaining momentum, DraftKings is positioning itself to compete more aggressively as the US prediction market enters a critical growth phase.
