On a pleasant morning in Boston's Back Bay, DraftKings CEO Jason Robins appeared on CNBC’s *Squawk Box*, addressing the current state of the U.S. sports wagering and predictions market. Facing increasing competition from Kalshi and Polymarket, both of which have valuations exceeding $20 billion, Robins highlighted DraftKings' recent launch of DKeX, a proprietary prediction market exchange designed to integrate its predictions segment with its sports offerings.
DraftKings stands apart from Kalshi, recognized as the leading player in predictions, as it also operates an established online sports betting platform. Kalshi has reported an annualized trading volume of $39.7 billion through the first half of 2026. Responding to CNBC’s Joe Kernan regarding potential regulatory loopholes being exploited by competitors, Robins stated that DraftKings welcomes the competition.
During the interview, Robins engaged in a pointed discourse, accusing the competing companies of spreading misconceptions that could undermine trust within the industry. He specifically took issue with claims suggesting that these platforms lack the incentive to see users win or lose.
Robins asserted, “Some of the companies out there are spinning narratives that just aren’t true.” As of now, Kalshi's CEO Tarek Mansour has not commented on Robins' statements. Both Robins and Mansour were appointed to the U.S. Commodity Futures Trading Commission's Innovation Advisory Committee earlier this year.
Shortly after his television appearance, Robins spoke to Wall Street analysts during DraftKings' second-quarter earnings call. Despite lagging behind Kalshi, DraftKings reported sports revenue of $1.99 billion for the quarter, a nearly 6% increase from the same time last year. The company consolidated its results from online sports betting, retail sports betting, and prediction market revenue into one segment, without separating out the predictions revenue. They did reveal that since the start of the year, around 600,000 users have participated in the predictions platform. Robins expressed optimism about the upcoming football season, which he views as a prime opportunity for customer acquisition.
As of June 30, 2026, DraftKings averaged 3.6 million unique monthly players, an increase of 9.1% compared to the same period last year. This growth was significantly boosted by the 2026 FIFA World Cup. Notably, Kalshi has introduced an event contract anticipating whether DraftKings will surpass 4 million average monthly players this fiscal year.
DraftKings' second-quarter revenue saw a decrease of $69.3 million, totaling $1.44 billion. The company attributed this decline to player-friendly sports outcomes and higher promotional expenses. When asked if he expects to ramp up promotional spending for the upcoming football season, Robins indicated that DraftKings has the capability to adjust spending as needed.
Earlier this week, Flutter’s management announced a $270 million investment in its FanDuel U.S. business for the latter half of 2026. Although Flutter lowered its full-year guidance, DraftKings aims to achieve an adjusted EBITDA of $1 billion, according to CFO Alan Ellingson. He commented on their efforts to enhance cost efficiency while investing in long-term value opportunities. For the quarter, DraftKings reported adjusted diluted earnings per share of $0.09, missing analyst expectations of $0.22.
Investors reacted positively to the company's future prospects in prediction markets, lifting DraftKings' stock by 8% to $24.03 per share on Friday. In contrast, Flutter's share value dropped about 9% following the announcement of CEO Peter Jackson’s departure. Flutter’s predictions segment generated only $6 million in the second quarter, aligning with Susquehanna analyst Joe Stauff’s view that FanDuel is lagging behind DraftKings in this area and has yet to decide on developing its own market-making exchange.
Citizens analyst Jordan Bender rated DraftKings as a "market outperform" with a $36 price target, based on estimates for 2027 EBITDA and free cash flow. Truist Securities analyst Barry Jonas also reaffirmed a buy rating with a $29 price target. Despite both companies facing more than 20% declines year-to-date amid fierce competition, Robins remains optimistic. Ahead of the NFL season, he indicated that DraftKings would update its “super app” with new features in predictions.
“We are on offence, the core business is firing,” he concluded.
