DraftKings CEO says sports betting still dominates despite rise of prediction markets

DraftKings CEO Jason Robins told Jimmy Cramer on Thursday that prediction markets are not replacing traditional sports-betting, because the products do not offer the same experience, scale of markets, or even pricing depth.

Jason said:

“Simply going and spending five minutes looking at the products, you’ll see what I mean. It’s night and day. The amount of markets, even the pricing, isn’t something that I would view as competitive with what we do.”

Jason explained that users who want to wager on sports outcomes still prefer the sportsbook format because that is where the volume, variety, and familiarity are.

The DraftKings CEO pointed to the existing situation in the U.K. and Western Europe to support this point, saying that exchange-based betting only takes low to mid single-digit share where it is available alongside traditional books.

Jason said this shows that there is no large migration away from sportsbooks, and that sports-betting is tied to how fans watch and follow live competition, and prediction markets handle broader non-sports events like elections, awards, and other outcomes.

DraftKings enters prediction markets while defending sportsbook focus

Even though Jason insisted sportsbooks are not threatened, DraftKings is still entering the prediction space. The company acquired RailBird last month, and it plans to release a mobile app that lets users place bets on outcomes in areas such as entertainment and finance. Jason told Jim this move is mainly strategic for states where online sports-betting is still illegal, including California and Texas. He said this allows the company to be active in those large markets while gaming laws continue to develop.

Jason said, “I think the reality is that at least for the near term, it looks like the momentum is here. They’re here to stay. And so, I think with that in mind, we need to participate, and we should have the tools to win.”

DraftKings also reported quarterly earnings Thursday after the market closed but lowered its full-year sales outlook, causing its stock to plunge by more than 5% in after-hours trading.

In the last quarter, DraftKings saw $1,144 million in revenue ($49 million higher than a year ago), while revenue surged by 4%, supported by “strong customer engagement, efficient new customer acquisition, and a higher sportsbook hold rate,” which grew 17% year-over-year, said DraftKings.

Jason said, “This is the most bullish I have ever felt about our future.” He noted that the company expects to launch DraftKings Predictions in the coming months, which he described as an incremental opportunity.

The company’s CFO, Alan Ellingson, said the growth in handle and the increase in parlay activity are improving free cash flow. Alan also announced that DraftKings’ share repurchase program was expanded from $1.0 billion to $2.0 billion.

DraftKings’ monthly Unique Payers increased 2% to 3.6 million, supported by strong retention and new sign-ups. Without Jackpocket, growth would have been 6%. Average Revenue per MUP reached $106, up by 3% from the year before.

DraftKings raised its 2025 revenue guidance to $5.9 billion to $6.1 billion, which is a 28% growth over 2024, according to the earnings report.

DraftKings’ adjusted EBITDA guidance now stands between $450 million and $550 million.

Don’t just read crypto news. Understand it. Subscribe to our newsletter. It's free.