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DraftKings says there is only limited overlap between its traditional sportsbook customers and prediction market users, a data point the company is using to argue that products such as DraftKings Predictions are reaching a different audience rather than simply shifting existing bettors.
In comments tied to the company’s latest earnings update, CEO Jason Robins said DraftKings sees about 1% customer overlap between its sportsbook and the largest prediction market operator in sportsbook states, which he identified as Kalshi. He also said DraftKings’ internal analysis suggests 80% to 90% of prediction market consumer volume in those states comes from professional betting syndicates and institutional traders.
DraftKings says prediction markets are not heavily cannibalizing sportsbook play
Robins said DraftKings’ sports revenue fell 11.7% to $891.9 million in the second quarter, but he did not blame prediction markets for the decline. Instead, his comments framed prediction markets as a market with a meaningfully different user mix than the company’s core sportsbook business.
That distinction matters as more gambling and trading companies push into event-based markets. Robins said most of the volume in sportsbook states appears to come from participants who mostly would not have been wagering through sportsbooks to begin with.
DraftKings Predictions reaches $11 billion annualized volume
DraftKings also said annualized total volume on DraftKings Predictions reached $11 billion in July, which implies monthly volume of just under $1 billion. Robins said the company was market making on three exchanges, though he did not name them.
The company launched its own in-house exchange in early June, and most trades on DraftKings Predictions still go through Crypto.com, according to the report. Robins said DraftKings believes prediction market customers can deliver similar lifetime value to sportsbook users over time, even if revenue per customer is lower, because the business carries a higher-margin profile.
Earnings pressure remains despite the growth pitch
DraftKings reported a second-quarter loss of $67.6 million, while adjusted EBITDA fell to $115 million. CFO Alan Ellingson said the company still expects about $1 billion in adjusted EBITDA this year and maintained fiscal 2026 guidance for $6.5 billion to $6.9 billion in revenue and $700 million to $900 million in adjusted EBITDA.
DraftKings shares fell 1.6% in after-hours trading to $21.81 and were down more than 50% over the past year.
For players, the immediate takeaway is less about a product change and more about strategy: DraftKings is signaling that prediction markets are becoming a bigger part of its business, while arguing they are not yet drawing heavily from its existing sportsbook base.
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Source: As reported by ingame.com.
