DraftKings CEO: Sportsbook in ‘Monitor Mode’ on Prediction Markets

Jason Robins says sports betting giant "keeping a close eye" on federal regulation decisions regarding prediction markets, believes there are drawbacks to being an "early mover" in the space.

Brad Senkiw - Contributor at Covers.com
Brad Senkiw • News Editor
Aug 7, 2025 • 11:50 ET • 4 min read
Photo By - Imagn Images. DraftKings CEO Jason Robins addresses the crowd during the DraftKings Sportsbook groundbreaking ceremony at the TPC Scottsdale Champions Course. Alex Gould/The Republic Pga Sportsbook Groundbreaking At Tpc Scottsdale

DraftKings CEO Jason Robins said the sports betting and iGaming giant is “actively exploring” entering the prediction outcome market, but the company is far from diving headfirst into a controversial industry. 

Key Takeaways

  • DraftKings likely won’t be the first sports betting operator to dive into prediction markets.
  • Sportsbook-friendly sports betting results in Q2 led to record revenue, Adjusted EBITDA, and net income. 
  • DraftKings expects accelerated customer acquisition in Missouri following the Dec. 1 launch.  

As current event-contract platforms, like Kalshi, are battling legal issues in some states and awaiting potential federal changes to regulation, DraftKings is taking a “measured approach” at this time and weighing many different potential challenges.  

“Hard to comment on specific discussions that we are having, but I think you can assume that we are more in monitor mode in terms of active discussions,” Robins said during Thursday’s quarterly earnings call. “A lot of what we need to see will come from watching how things unfold with others that are currently offering prediction markets. I think we’ll kind of have to see how that goes and evaluate it. It’s all happening in very fast real time, so definitely a lot to think through.”

That doesn’t mean DraftKings isn’t prepared to pounce if an opportunity presents itself. Robins said the gaming operator is monitoring federal regulation decisions and will collaborate with policyholders before entering that space. 

As for being the first sports betting operator to offer prediction market contracts on events like the Super Bowl or World Series, which differ from betting markets, don’t expect DraftKings to be in a rush. 

“I do think being an early mover in a space like this can be important,” Robins said. “I also think that being a literal first mover may not be as important. There are downsides to that as well. We’re evaluating. Obviously, we have a lot of stakeholders, state regulators, relationships with tribes, and others that we make sure that we consider as we think about what our different options are. We’re keeping a close eye on it and figuring out what we want to do.”

Sports betting flourishes

One of the reasons DraftKings can take this approach is because of how well the business is going elsewhere. The gaming operator announced a 37% year-over-year revenue increase to a record $1.51 billion during the second quarter of 2025 from a customer base that grew 6%. 

With a 20% year-over-year margin increase, Adjusted EBITDA of $301 million was double the previous record. DraftKings also set a new mark for net income.   

Sports betting had a lot do with the Q2 success behind a 45.3% year-over-year revenue increase to $997.9 million, thanks to high win percentages in May and June. The sportsbook’s handle was up 6.3% year over year to $11.5 billion, with live betting increasing 16%. 

The structural hold spiked 100 basis points to 10.9% while the actual hold reached 11.5%. Parlays greatly helped, as that mix rose by 430 points compared to Q2 2024. 

Staying the course

iGaming revenue increased 22.6% year over year, but despite the Q2 success, DraftKings didn’t raise 2025 guidance. 

“We are on track to deliver revenue on the high end of the $6.2-billion to $6.4-billion range,” DraftKings CFO Alan Ellingson said. 

With most of the EBITDA coming up in the back half of the year due to NFL and NBA betting, DraftKings didn’t want to “lean too heavily” this early in the year and increase expectations.

Ready for launch 

Another reason DraftKings kept guidance the same is based on entering the Missouri sports betting market on Dec. 1, which Ellingson said will have a $35-million to $45-million impact on Adjusted EBITDA in 2025. The online operator has applied for and is expected to receive one of the two untethered mobile licenses in the Show-Me State. 

Robins said he expects the Missouri launch to look similar to entries into Ohio and Massachusetts for customer acceleration. 

“The timing of the year is different. This is going to be happening right in the middle of the year of the NFL season, so that’ll probably change the pace and the curve,” he said. “I would anticipate an accelerated curve for that reason, too. All of the major sports outside of baseball will be happening.”

Studying surcharges

DraftKings is also bracing for a major tax change in Illinois. Lawmakers added a per-wager surcharge that went into effect last month. In turn, DraftKings is imposing a 50-cent transaction fee on online wagers. 

“The way Illinois implemented the tax there wasn’t a good solution,” Robins said. “I hope they fix it. There’s got to be a better way to do it. At this point, it’s really hard to say what it’s going to do. I don't think it’s going to have zero impact, that’s for sure.”

Robins said DraftKings will use this “unprecedented” measure to assess if it wants to add customer fees in other high tax rate states in the future.

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Brad Senkiw - Covers
News Editor

Brad has been covering sports betting and iGaming industry news for Covers since 2023. He writes about a wide range of topics, including sportsbook insights, proposed legislation, regulator decision-making, state revenue reports, and online sports betting launches. Brad reported heavily on North Carolina’s legal push for and creation of online sportsbooks, appearing on numerous Tar Heel State radio and TV news shows for his insights.

Before joining Covers, Brad spent over 15 years as a reporter and editor, covering college sports for newspapers and websites while also hosting a radio show for seven years.

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