DraftKings and FanDuel Becoming Prediction Market Makers

DraftKings and FanDuel (two of our best sports betting apps) have long maintained that their core sportsbook businesses are where their attention stays. Their recent earnings calls, however, told a more complicated story as they eye more activity in the prediction markets space. 

Both companies used those investor presentations to confirm they are expanding deeper into prediction markets, not just as platforms, but as active market makers. This role involves posting buy and sell prices on contracts to keep trading liquid and functional. 

Market making is a practice already common in financial trading, associated with firms like Susquehanna International Group and Jump Trading. When applied to prediction markets, it means the platforms themselves are now participating in the ecosystems they host, not just facilitating trades between users. 

DraftKings, which surpassed analyst revenue targets for the first quarter of 2026 and held its full-year forecast steady, characterized prediction markets as a large incremental growth opportunity.  

CEO Jason Robins noted the company's market-making operation turned profitable quickly, describing it as one of the fastest business lines in the company's history to generate positive returns. “It’s one of our fastest to profitability business lines we’ve ever launched, so really excited about that,” he said.  

Robins also added that DraftKings intends to be active on multiple platforms beyond its own, though he stopped short of naming specific competitors. 

Flutter Entertainment, FanDuel's parent company, reported a first-quarter beat as well, but trimmed its full-year guidance and faced the separate distraction of a leadership change at the top of FanDuel. Flutter also disclosed that it began market making on a third-party prediction platform last month. 

The moves have drawn scrutiny from observers who argue that active market-making by these companies weakens the long-standing claim that prediction markets are purely peer-to-peer, with no house advantage. 

DraftKings Eyes Alberta as Its Next Canadian Market 

DraftKings' push into new market structures runs parallel to a more traditional form of expansion. In mid-April, it announced it plans to launch both its online sportsbook and casino products in Alberta, Canada, contingent on receiving the necessary licenses and regulatory clearances from provincial authorities. 

The target launch date is July 13, 2026, which aligns with a universal opening set by the province’s gambling regulator, the Alberta Gaming, Liquor and Cannabis Commission. 

Alberta would be the second Canadian province where DraftKings operates, joining Ontario, which has been the company's sole Canadian presence to date. The addition would also bring DraftKings' total count of active North American jurisdictions to 34 for sports betting and seven for online casino. 

The timing carries some deliberate significance. The anticipated Alberta launch date falls during the FIFA World Cup, which is being hosted across North America in 2026. DraftKings cited that overlap as a key factor in the appeal of the expansion, given the level of sports interest expected in the province during that period. 

Eligible Alberta residents are currently able to pre-register ahead of the planned opening.