DraftKings Examines Role in Prediction Markets
DraftKings CEO Jason Robins has hinted that the company is still entertaining the idea of prediction markets but is not yet prepared to elaborate.
Robins touched upon the subject during the Bank of America Gaming & Lodging Conference, where panel members inquired about recent moves by FanDuel, Underdog, and Polymarket to enter the market.
These developments have stirred debate among tribal casinos, state officials, and trade associations. They warn that prediction markets could reduce gaming revenues, threaten jobs, and provide weaker consumer protections.
Robins emphasized that DraftKings is weighing both the risks and opportunities. He noted the federal stance appears to support prediction markets, but their acceptance at the state level remains uncertain. "It's not so much that we don’t think we should be an early mover. It's that we have to make sure we have the right thing and be prepared to do it. When all that happens, we'll announce it," he stated.
He added that companies like Polymarket do not face the same state-based revenue challenges as established sportsbook operators. For DraftKings, any entry would likely target states without legalized sports betting to minimize overlap with existing markets.
Robins also highlighted that prediction contracts outside of sports are more common, creating additional considerations for the company. He said DraftKings is preparing internally but will only announce concrete plans once the strategy is fully developed.
Following his comments, Bank of America analyst Shaun Kelley told investors that DraftKings “will focus on states that don’t have legalized online sports betting. Strategically, the broader exchange licensing process could create a pathway for other financially oriented products.”
Underdog moves first with Crypto.com
While DraftKings is still evaluating options, Underdog has already taken steps to launch sports prediction markets, announcing a partnership with Crypto.com to operate in 16 states. The move establishes Underdog as the first sports betting operator to offer prediction contracts formally.
Underdog CEO Jeremy Levine said the model is still evolving but predicted sports will primarily drive it. The use of Crypto.com's blockchain infrastructure provides not only transaction support but also signals increasing interest in integrating digital finance into wagering products.
“Prediction markets are one of the most exciting developments we’ve seen in a long time, ” Levine told CNBC. “While still new and evolving, one thing is clear -- the future of prediction markets is going to be about sports -- and no one does sports better than Underdog.”
Competition is intensifying as other operators pursue similar ventures. FanDuel announced its partnership with CME Group in August to develop financial event contracts. That resulted in a warning from Nevada gaming regulators, although the company hasn't yet introduced its new offerings.
