DraftKings launched its own prediction exchange, DKeX, several weeks ago and folded the product into its wider sports offering. Asked on CNBC's Squawk Box about competition from Kalshi and Polymarket — both valued above $20bn — chief executive Jason Robins said DraftKings welcomes it.
Kalshi has booked $39.7bn in annual trading volume for 2026. Robins accused rivals of pushing a myth that could do 'long-term harm to trust in the industry': the claim that these companies have no incentive to 'see people win or lose'. Retail customers often take the other side of institutional market makers armed with quantitative tools. 'Some companies are promoting narratives that just aren't true,' Robins said. Kalshi chief executive Tarek Mansour did not respond to the comments on X. Both men sit on the CFTC's Innovation Advisory Committee.
Second-quarter results
Sports revenue for the quarter came in at $1.99bn, up almost 6% year on year. Total revenue fell $69.3m to $1.44bn, which the company attributes to customer-friendly results and higher promotional reinvestment. Adjusted diluted earnings per share were $0.09 against a consensus of $0.22. The average monthly player base over the three months to 30 June 2026 was 3.6 million, up 9.1% year on year, with a notable part of the gain coming from a one-off 2026 FIFA World Cup effect. About 600,000 customers have used the prediction platform since the start of the year.
Flutter will put a further $270m into FanDuel US in the second half of 2026, and its prediction segment brought in $6m over the quarter. Susquehanna analyst Joe Stauff puts FanDuel's lag behind DraftKings at between nine months and a year. Flutter has not yet decided whether to launch its own market-maker exchange. DraftKings shares closed Friday at $24.03, up 8% on the day; Flutter lost about 9% on Wednesday after the departure of chief executive Peter Jackson. Both stocks are down more than 20% since the start of the year. DraftKings CFO Alan Ellingson expects $1bn in annualised adjusted EBITDA from the core business. Citizens keeps a market outperform rating and $36 target; Truist reiterates buy with a $29 target. Robins added that the company has room to raise promotional spend ahead of the NFL season.
