DraftKings Expands into Prediction Markets
DraftKings CEO Jason Robins said prediction markets are not taking customers away from sports betting and stressed that the two operate in distinctly different spaces. Speaking to CNBC's Jim Cramer, Robins described the contrast between the platforms as "night and day," noting that a closer look at each product reveals major differences in both user experience and market structure.
Robins pointed to examples in the UK and Western Europe, where exchange-based wagering platforms coexist with conventional sportsbooks. In those regions, exchange products typically hold a small single-digit share of the overall market, suggesting that customers rarely migrate away from sportsbooks to use them.
This comparison, he said, shows that prediction markets appeal to a different audience and will not disrupt DraftKings' core operations in sports betting and iGaming.
DraftKings has confirmed plans to launch "DraftKings Predictions," a new product that will operate as a regulated prediction markets platform. The company said the launch is likely to occur before the end of the year, but only if it receives final approval from the governments of certain states.
During DraftKings' earnings call for the third quarter of 2025, the company talked about its ongoing efforts to grow beyond sports betting and its real-money online casino operations.
The new product will add sports event contracts, which are like prediction markets that are already regulated by the federal government. It will also let users make event-based predictions in a way that follows the rules.
Robins described the move as a "significant incremental opportunity" that could extend DraftKings' reach into areas without legal online sportsbooks.
ESPN names DraftKings as official sportsbook
DraftKings' diversification strategy coincides with a major media partnership. ESPN has designated DraftKings as its Official Sportsbook and Odds Provider beginning Dec. 1, following the termination of ESPN's previous collaboration with Penn Entertainment.
Under the new agreement, DraftKings' branding and betting content will be integrated across ESPN's digital ecosystem, including the betting tab within the ESPN App. ESPN Chairman Jimmy Pitaro said the partnership is part of the network's long-term effort to blend sports viewing with interactive betting experiences.
He said DraftKings' position as an established market leader made it a natural choice for ESPN's next stage of development in sports wagering content.
At launch, ESPN users will gain access to DraftKings' sportsbook, daily fantasy sports, and Pick6 games, with a full rollout of integrations planned for 2026. Robins said the partnership leverages ESPN's unparalleled visibility and storytelling strength to create an engaging and responsible betting experience. He described the collaboration as an opportunity to combine DraftKings' technology with ESPN's media influence to deliver a more seamless, data-driven platform for fans.
Both companies stated they will promote responsible gaming through advertising campaigns and in-app resources. DraftKings, which currently operates in 28 states, Washington, DC, and Ontario, serves more than 10 million customers and continues to expand its regulated footprint across North America.
