On a pleasant morning in Boston's Back Bay, DraftKings CEO Jason Robins took to CNBC’s Squawk Box, addressing a pivotal time for the U.S. sports betting and prediction market sector. With a wide audience watching, he responded to the increasing competition from Kalshi and Polymarket, newly emerging firms now valued over $20 billion each. DraftKings has recently launched its proprietary prediction market exchange, DKeX, aiming to integrate its prediction services within its broader sports betting platform.
In contrast to its rivals, DraftKings provides a traditional online sports betting option. Kalshi, seen as a leading player in predictions, reported an annualized trading volume of $39.7 billion thus far in 2026. During an exchange with CNBC’s Joe Kernan regarding whether Kalshi and Polymarket had exploited a regulatory gap, Robins expressed that DraftKings welcomes this competition.
He quickly shifted to a more combative tone, asserting that these companies propagate a misleading notion that could harm the industry's credibility. Robins took issue with claims that suggest these competitors lack an incentive for players to win or lose, arguing instead that many recreational users engage as opponents to sophisticated institutional market makers equipped with advanced quantitative tools.
"Some of the companies out there are spinning narratives that just aren't true," Robins stated. As of now, Tarek Mansour, the CEO of Kalshi, has yet to respond to Robins' statements on social media. Both leaders had been appointed to the U.S. Commodity Futures Trading Commission's Innovation Advisory Committee earlier this year.
That same day, Robins also spoke to Wall Street analysts during DraftKings’ second-quarter earnings call. Although DraftKings currently trails Kalshi in the prediction sector, it reported sports revenue of $1.99 billion for the quarter, a notable increase of almost 6% compared to the same period in 2025. DraftKings combined its online and retail sportsbook and prediction market revenues into a single category, omitting a detailed breakout of prediction revenue. However, Robins noted that around 600,000 customers have used the predictions platform since the start of the year, expressing optimism for customer acquisition as the football season approaches.
By the end of June 2026, DraftKings' average monthly unique user count reached 3.6 million, a 9.1% rise from the previous year, although this growth largely stemmed from a one-time surge related to the 2026 FIFA World Cup. Curiously, Kalshi offers a contract regarding whether DraftKings' user count will exceed 4 million this fiscal year, with trades as of noon on Friday suggesting a 64% probability.
In terms of earnings, DraftKings’ revenue dropped by $69.3 million to $1.44 billion, which the company attributed to favorable sports outcomes for customers and increased promotional spending. When asked about potential promotional increases for the upcoming football season, Robins stated that DraftKings is prepared to adjust its spending as necessary.
Earlier this week, Flutter’s management announced plans to inject an additional $270 million into its U.S. FanDuel operations in the latter half of 2026. Despite Flutter revising its full-year guidance downwards, DraftKings remains focused on achieving an annualized adjusted EBITDA of $1 billion, according to CFO Alan Ellingson. He emphasized the need for improving operational efficiency while investing in long-term value opportunities.
DraftKings reported adjusted diluted earnings per share of $0.09 for the quarter, falling short of analysts’ expectations of $0.22. However, investors reacted favorably, concentrating on the prospects of expanding their predictions market, resulting in DraftKings' stock closing at $24.03, up 8% for the day. In contrast, Flutter's stock dropped about 9% following the announcement of CEO Peter Jackson's departure, signaling a caution in FanDuel's commitment to predictions.
In the second quarter, Flutter’s predictions segment generated just $6 million, leading analysts to speculate that FanDuel is lagging by several months in establishing a competitive predictions market. Flutter has yet to make a decision on whether to set up its own market-making exchange.
Citizens analyst Jordan Bender maintains a "market outperform" rating on DraftKings with a $36 price target, supported by a valuation based on expected 2027 EBITDA and free cash flows. Truist Securities’ Barry Jonas also reiterated a buy rating but with a price target of $29.
Both DraftKings and Flutter have experienced declines of over 20% this year amid intensifying competition in the sports sector. Nonetheless, Robins remains optimistic. Ahead of the NFL season, he announced forthcoming updates to DraftKings’ "super app" with new predictions features set to launch.
"We are on offense, the core business is firing," Robins concluded.
