On a pleasant morning in Boston’s Back Bay area, DraftKings CEO Jason Robins appeared on CNBC's Squawk Box, shedding light on the evolving landscape of the US sports wagering and predictions market. During his segment, Robins faced inquiries about rising competition from new players Kalshi and Polymarket, both valued at over $20 billion. DraftKings recently launched its proprietary prediction market exchange, DKeX, marking a strategic integration of its prediction services within its broader sports offerings.
In contrast to Kalshi and Polymarket, DraftKings operates a traditional online sports betting platform alongside its prediction services. Kalshi, recognized as a leading player in predictions, has achieved an annualized trading volume of $39.7 billion in 2026. Responding to CNBC's Joe Kernan, who questioned if these companies exploited regulatory loopholes, Robins stated that DraftKings embraces the competition.
Robins went further, engaging in a verbal exchange where he accused his competitors of promoting inaccurate narratives that could undermine trust in the industry. He specifically took issue with the notion that Kalshi and Polymarket have no vested interest in the outcomes of their users. According to Robins, recreational customers often find themselves competing against institutional market makers equipped with advanced quantitative analysis tools.
"Some of the companies out there are spinning narratives that just aren’t true," Robins remarked on air.
As of this writing, Kalshi CEO Tarek Mansour had yet to respond to Robins’ comments via social media. Interestingly, both leaders were appointed to the US Commodity Futures Trading Commission's Innovation Advisory Committee earlier this year.
After his CNBC appearance, Robins spoke with Wall Street analysts during DraftKings’ Q2 earnings call. While DraftKings trails behind Kalshi in predictions, it reported sports revenue of $1.99 billion for the quarter, a nearly 6% increase from the same time in 2025. The company combined its online sportsbook, retail sportsbook, and predictions revenue into a single segment in its quarterly earnings report released Thursday.
Although no specific figures were provided for prediction revenue, Robins mentioned that around 600,000 customers engaged with the predictions platform since the year's start. He expressed enthusiasm for the upcoming football season as a prime opportunity for customer acquisition.
DraftKings ended the period concluding June 30, 2026, with an average of 3.6 million unique monthly players, marking a 9.1% rise from the previous year. However, a significant part of this growth was attributed to a spike during the 2026 FIFA World Cup. Ironically, Kalshi is offering an event contract over whether DraftKings will exceed 4 million players this fiscal year, with the option trading at 64% at noon ET on Friday.
Regarding earnings, DraftKings reported a $69.3 million decrease in second-quarter revenue, totaling $1.44 billion. The downturn was attributed to favorable sports results for customers and an uptick in promotional spending. When asked about potential promotional strategies for the upcoming season, Robins indicated that the company is prepared to boost spending if needed.
In related news, Flutter Entertainment revealed plans to inject an additional $270 million into its FanDuel operations in the latter half of 2026, despite having lowered its full-year guidance. Meanwhile, CFO Alan Ellingson communicated that DraftKings remains on track for an annualized adjusted EBITDA of $1 billion, emphasizing a focus on efficiency while pursuing long-term value opportunities.
For Q2, DraftKings reported adjusted diluted earnings per share of $0.09, which fell short of analysts’ expectations of $0.22. However, investors appeared to overlook this disappointment, concentrating instead on the optimism surrounding the expansion of predictions. DraftKings shares closed at $24.03 on Friday, reflecting an 8% increase for the day, while Flutter's stock dipped around 9% following CEO Peter Jackson's unexpected departure. This trend suggests a more cautious approach from FanDuel towards predictions compared to DraftKings.
In the second quarter, Flutter generated only $6 million from its predictions segment. Susquehanna analyst Joe Stauff noted that FanDuel lags behind DraftKings by roughly 9 to 12 months in establishing a predictions market. Flutter's decision on launching its own market-making exchange remains undecided.
Citizens analyst Jordan Bender classified DraftKings as "market outperform" with a $36 price target, based on a valuation of 15.5 times Citizen’s estimates for 2027 EBITDA and free cash flow. Truist Securities analyst Barry Jonas also reiterated a buy rating, giving a $29 price target.
Both DraftKings and Flutter have faced declines of over 20% year-to-date due to mounting competition. Nonetheless, Robins remains resolute. Ahead of the NFL season, he hinted at upcoming enhancements to the company’s "super app," including new predictions offerings.
"We are on offence; the core business is firing," Robins stated confidently.
