On a warm morning in Boston’s Back Bay, DraftKings CEO Jason Robins appeared on CNBC’s Squawk Box during a pivotal moment for the U.S. sports wagering and prediction market. Under the bright lights of national television, he discussed the increasing competition posed by Kalshi and Polymarket, two emerging firms valued over $20 billion. DraftKings recently launched DKeX, its proprietary prediction market exchange, as part of an effort to integrate its predictions with its sports offerings.
Unlike its rivals, DraftKings also runs a traditional online sports betting platform. Kalshi, which leads the prediction sector, has seen $39.7 billion in annualized trading volume in 2026. In response to a question from CNBC’s Joe Kernan about whether these companies exploit regulatory gaps, Robins stated that DraftKings embraces the competition.
Robins launched into a critical discussion regarding perceptions held about these competitors, arguing that misleading narratives could undermine the industry's credibility. He expressed frustration over claims suggesting that these companies lack incentives to ensure outcomes favoring players.
"Some of the companies out there are spinning narratives that just aren’t true," Robins told CNBC, indicating that recreational users often engage with sophisticated institutional market makers capable of advanced quantitative analysis.
As for Kalshi, CEO Tarek Mansour did not comment on Robins’ assertions via X. Notably, both executives were appointed to the U.S. Commodity Futures Trading Commission’s Innovation Advisory Committee earlier this year.
Following his CNBC appearance, Robins engaged with Wall Street analysts on DraftKings’ second-quarter earnings call. Although still trailing Kalshi in the predictions market, DraftKings reported sports revenue of $1.99 billion, reflecting nearly a 6% increase compared to the same period in 2025. In their earnings report, DraftKings combined revenue from online and retail sportsbooks along with prediction markets into a single segment.
While the company did not disclose specific prediction revenue, Robins mentioned that around 600,000 customers have interacted with their predictions platform since the start of the year. He is looking forward to the upcoming football season, which he believes presents an excellent opportunity for customer acquisition.
As of June 30, 2026, DraftKings reported an average of 3.6 million unique players monthly, a 9.1% increase from the previous year, although this surge was largely due to the 2026 FIFA World Cup. Interestingly, Kalshi has a trading contract on whether DraftKings will surpass 4 million monthly players this fiscal year, which was trading at a 64% probability as of Friday noon.
DraftKings’ second-quarter revenue dropped $69.3 million to $1.44 billion, attributed to favorable sports outcomes for customers and increased promotional spending. Regarding promotional intensity for the upcoming season, Robins indicated that DraftKings is prepared to adjust its spending as necessary.
Earlier in the week, Flutter revealed plans to invest an additional $270 million into its FanDuel U.S. platform in the latter half of 2026. Even as Flutter revised its full-year guidance down, DraftKings aims for an annualized adjusted EBITDA of $1 billion, according to CFO Alan Ellingson.
Robins stated, "We remain focused on improving the efficiency of our cost structure while continuing to invest behind the opportunities that we believe will create the most long-term value." For the quarter, DraftKings' adjusted diluted earnings per share were $0.09, missing analysts' expectations of $0.22. However, investors seemed unfazed by this shortfall, focusing instead on optimism regarding expansion in predictions. Shares closed at $24.03 on Friday, rising 8% for the day. In contrast, Flutter’s stock dipped approximately 9% on Wednesday following the announcement of CEO Peter Jackson’s departure, highlighting FanDuel’s reluctance to fully commit to the predictions space.
Flutter reported only $6 million from its predictions segment in the second quarter. Analyst Joe Stauff from Susquehanna noted that FanDuel is about 9-12 months behind DraftKings in building its predictions market, and Flutter has not yet decided on launching a market-making exchange.
Citizens analyst Jordan Bender rated DraftKings as "market outperform" with a price target of $36, based on a multiple of 15.5x Citizens’ EBITDA and free cash flow projections for 2027. Meanwhile, Truist Securities analyst Barry Jonas reiterated a buy rating with a $29 price target.
Both DraftKings and Flutter have experienced declines of more than 20% year-to-date amid intense competition in sports betting products, but Robins remains optimistic. With the NFL season approaching, he announced plans to update DraftKings' "super app" with new features in the predictions domain.
"We are on offence; the core business is firing," Robins concluded.
