On a warm morning in Boston’s Back Bay, DraftKings CEO Jason Robins made a significant appearance on CNBC’s Squawk Box during a pivotal time for the US sports betting and predictions market. In front of a large streaming audience, Robins discussed the increasing competition from Kalshi and Polymarket, two emerging operators valued at over $20 billion. Recently, DraftKings launched DKeX, a proprietary prediction market exchange, as part of an initiative to incorporate its prediction services within its overall sports platform.
In contrast to Kalshi and Polymarket, DraftKings also maintains a traditional online sports betting service. Kalshi, which claims to lead the predictions market, has reported an annualized trading volume of $39.7 billion so far in 2026. Addressing a query from CNBC's Joe Kernan regarding whether these companies have exploited a regulatory gap, Robins expressed that DraftKings welcomes the competition.
However, Robins did not hold back in his criticism. He accused the rival firms of perpetuating narratives that could harm the industry’s long-term credibility. He contested the idea that these companies lack any incentive for participants to win or lose, stating that recreational users often compete with sophisticated institutional market makers using advanced quantitative analysis tools. "Some of the companies out there are spinning narratives that just aren’t true," Robins remarked on CNBC.
As of now, Kalshi's CEO Tarek Mansour has not responded to Robins’ statements on social media. Both leaders are part of the US Commodity Futures Trading Commission's Innovation Advisory Committee, appointed earlier this year.
After his CNBC segment, Robins spoke to Wall Street analysts during DraftKings' second-quarter earnings call. Although DraftKings is still behind Kalshi in the predictions space, the company reported sports revenue of $1.99 billion for the quarter, marking an increase of nearly 6% compared to the same period in 2025. In a move to streamline its reporting, DraftKings consolidated results from its online sportsbook, retail sportsbook, and prediction market revenues into a single segment. While the company did not specify revenue figures for its prediction segment, it noted that about 600,000 customers have engaged with the predictions platform since the start of the year. Robins is optimistic about the upcoming football season, viewing it as a prime opportunity for customer acquisition.
By the conclusion of the quarter ending June 30, 2026, DraftKings had an average of 3.6 million monthly unique players—a 9.1% increase year-over-year. However, this growth is largely attributed to a spike from the 2026 FIFA World Cup. Interestingly, Kalshi is currently offering an event contract predicting whether this player metric will surpass 4 million during the fiscal year, with the option trading at 64% as of noon ET on Friday (meaning a $100 trade would yield $137).
In terms of earnings, DraftKings reported a $69.3 million decline in second-quarter revenue to $1.44 billion, a drop attributed to favorable sports outcomes for customers and increased promotional spending. When asked about the potential for elevated promotional activities for the upcoming football season, Robins indicated that DraftKings is prepared to adjust its spending as necessary.
This week, Flutter announced plans to inject another $270 million into its FanDuel US operations in the second half of 2026, though it has lowered its 2026 guidance. Meanwhile, DraftKings is set on delivering an annualized adjusted EBITDA of $1 billion, according to CFO Alan Ellingson. "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," Ellingson commented. The company reported adjusted diluted earnings per share of $0.09, which fell short of analysts’ estimates of $0.22.
Despite the earnings miss, investors remained hopeful about DraftKings’ future in predictions, with shares rising 8% to $24.03 on Friday. In contrast, Flutter's stock decreased roughly 9% on Wednesday following CEO Peter Jackson's resignation. This may reflect FanDuel's uncertainty regarding full engagement in the predictions market, as Flutter made only $6 million from its prediction segment in the second quarter. Analyst Joe Stauff from Susquehanna noted that FanDuel is approximately 9 to 12 months behind DraftKings in launching a predictions market.
Citizens analyst Jordan Bender rated DraftKings as "market outperform" with a $36 price target, based on a projection blending 15.5 times Citizen’s 2027 EBITDA and free cash flow estimates. Truist Securities analyst Barry Jonas also maintained a buy rating with a $29 price target. Both DraftKings and Flutter have seen their stocks decline more than 20% year-to-date amid rising competition within the sports betting sector. Nevertheless, Robins remains resolute, stating that DraftKings will update its "super app" with new predictions offerings ahead of the NFL season.
"We are on offense, the core business is firing," Robins affirmed.
