DraftKings CEO Jason Robins expressed optimism regarding the growth of the company's Predictions business, which he noted is expanding faster than expected. During an earnings call on August 7, he described the company's Q2 performance as "fantastic," despite reporting a year-over-year revenue decline of 4.6%, an adjusted EBITDA drop of 62% to $115 million, and a net loss of $67 million for the quarter.
Robins highlighted that over 600,000 customers engaged with the Predictions product during the first half of 2026, which he characterized as significantly exceeding expectations. He revealed that customer acquisition across the entire business increased nearly 75% year-over-year, resulting in approximately 30% more new customers than anticipated.
DraftKings operates mobile sports betting in 27 states, plus Washington, D.C., and Puerto Rico. The company reported an 11% increase in its sports wagering handle year-over-year, marking its third consecutive quarter of improvement in handle share across regulated sportsbook states. Alongside its established sports betting operations, DraftKings also launched Predictions in December, which is now available in 18 states. The total Sports Consumer Volume, combining sports betting and Predictions, reached $13.1 billion—a 15% increase over the same period in 2025. Between April and July, total trading volume for the Predictions product almost quintupled, jumping from $2.3 billion to $11 billion.
In recent months, DraftKings has expanded its Predictions offerings, launching its own in-house DKeX exchange in June and obtaining approval from the National Futures Association as a futures commission merchant (FCM) in July. These moves enable DraftKings to create its own markets and offer them across various platforms. Robins boasted that DraftKings is unique in having operational capabilities as a brokerage, exchange, and market-maker simultaneously.
The Predictions product now includes over 30 markets per MLB, NBA, and WNBA game, featuring prop-style player and per-innings markets. Robins noted that more than half of the new Predictions users have engaged with these markets, which have quickly inched toward 20% of the total predictions volume. He described the addition of parlay-style “Combos” via Crypto.com as a huge success.
Robins also mentioned that DraftKings has experienced a significant influx of new customers in states without legal, regulated sports betting. He remarked on the similarities in customer profiles between these unregulated states and those where DraftKings operates sportsbooks. The company plans to invest $200 million to $300 million more in its Predictions initiative this year. This budget will support a robust marketing campaign through partners like ESPN, NBC, Amazon, and various sports leagues, aiming to engage more customers across more states than previously achievable.
He advised that increased awareness will likely accelerate customer acquisition, particularly in states where DraftKings has not operated for some time. Robins predicted that the national advertising efforts, initiated during events like the World Cup, would become even more effective with the upcoming NFL season.
In regard to competition, Robins reiterated the lack of overlap between sports betting and prediction markets, downplaying concerns of market cannibalization. He indicated that analysis reveals only about a 1% customer overlap between DraftKings’ sportsbook users and participants in the largest prediction market, Kalshi, attributing the bulk of prediction market activity to professional bettors and institutional traders.
Looking ahead, Robins announced that DraftKings plans to migrate its prediction markets to its own platform, DKeX, which he expects to incorporate much of the major sports volume during the fall, particularly in college football and the NFL. Despite the losses reported by the competitor FanDuel and recent guidance cuts, DraftKings maintained its outlook, forecasting revenues of $6.5 billion to $6.9 billion and adjusted EBITDA of $700 million to $900 million for the year.
After a slight dip in share price following the quarterly results, DraftKings’ shares rallied, reaching around $23.25, a rise from $21.40 the previous evening. Over the past year, the stock has fallen approximately 51% from $48 in late August 2025.
