DraftKings CEO says Polymarket-style prediction markets may open more US states to sports betting

DraftKings CEO Jason Robins struck a confident tone on Friday, saying prediction markets probably won't rewrite sports betting writ large, but he does see the fresh approach to wagering on event outcomes as helping his company reach new customers.

"We are excited about our pending launch of DraftKings predictions and its potential to expand our total addressable market," Robins said during an earnings call on Friday. "In the coming months, we expect DraftKings predictions to enter many new states with sports events contracts, unlocking a new customer base and revenue stream."

Last month, the blockchain-based betting platform Polymarket said it would serve as the designated clearinghouse for DraftKings’ upcoming predictions market. That announcement came on the heels of DraftKings’ acquisition of Railbird Technologies, a designated contract market regulated by the U.S. Commodity Futures Trading Commission.

Robins was upbeat about prediction markets but downplayed the idea that the new form of betting would challenge the company's core business. "Predictions are structurally limited, lacking the depth and breadth of a sports betting offering," he said, adding that sports predictions are small compared to traditional betting.

Under a crypto-friendly Trump administration, prediction markets could grow exponentially in the years to come. Polymarket and Kalshi are currently the two leading platforms, but Coinbase and Robinhood are also making inroads. After shutting down its operation stateside, Polymarket is preparing to relaunch services in the U.S. Meanwhile, President Trump's social media platform, Truth Social, recently said it will host prediction markets available through an exclusive arrangement with Crypto.com.

"Nearly half the country's population remains without access to legal online sports betting, but there are several other companies offering federally-regulated predictions in all 50 states," Robins also said. "As growth in predictions continues, this may also motivate more states to legalize online sports betting."