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DraftKings said its Predictions business reached an annualized trading-volume run rate of $11 billion in July, a sharp increase from $2.3 billion in April, as the company moves more activity onto its own DKeX exchange.
The operator said more than 600,000 customers have used DraftKings Predictions this year. Consumer trading volume rose from about $1 billion annualized in April to $3.6 billion in July, while market-making volume climbed from $1.3 billion to $7.4 billion. Market making accounted for roughly two-thirds of the July run rate.
DraftKings plans to move more major sports volume onto DKeX
DraftKings launched its proprietary DKeX exchange in late June and said it received approval in July to operate as a futures commission merchant, or FCM. CEO Jason Robins said the company expects to port most major sports content onto the exchange “as fast as is reasonably possible,” starting with college football and the NFL.
Robins said the new exchange and FCM structure should improve unit economics by keeping more of the business in-house. DraftKings previously relied on Wedbush Securities as the FCM carrying customer accounts. The company launched Predictions with contracts listed on CME Group and added Crypto.com | Derivatives North America as a second third-party exchange in February.
DraftKings also said more than half of Predictions users have tried parlay-style combos, which are approaching 20% of consumer volume.
Investment remains heavy, but DraftKings says sportsbook overlap looks limited
DraftKings expects to invest $200 million to $300 million in Predictions this year, though Robins said the company is still taking a cautious approach because it is evaluating long-term customer value and navigating regulatory uncertainty.
At the same time, DraftKings said it has found little evidence that prediction markets are meaningfully taking sportsbook business away from the company in states with legal online sports betting. Citing Carbon Arc deposit data, it said customer overlap between DraftKings Sportsbook and the largest prediction market operator is about 1% in those states. DraftKings also estimates that 80% to 90% of prediction-market consumer volume in sportsbook states comes from professional syndicates and institutional traders.
For the quarter, DraftKings reported $1.44 billion in revenue, down 4.6% year over year, and adjusted EBITDA of $114.6 million, down from $300.6 million a year earlier. The company maintained its full-year 2026 outlook of $6.5 billion to $6.9 billion in revenue and $700 million to $900 million in adjusted EBITDA.
What players and industry watchers should watch next
The key near-term development is how quickly DraftKings shifts major fall sports content onto DKeX and whether that changes the customer experience or product depth. Another point to watch is the regulatory backdrop around prediction markets, which Robins said remains uncertain even as DraftKings expands the business.
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Source: As reported by Mike Breen.
