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DraftKings said its Predictions business is growing faster than expected, and CEO Jason Robins specifically pointed to strong new customer growth in states without regulated sports betting, including California and Texas.
The update came alongside a weaker quarterly earnings report. DraftKings said Q2 revenue fell 4.6% year over year, adjusted EBITDA dropped 62% to $115 million, and the company posted a net loss of $67 million. Even so, it maintained its full-year guidance.
Predictions volume is rising quickly
Robins said more than 600,000 customers engaged with Predictions in the first half of 2026, while customer acquisition increased almost 75% year over year. He said the product is reaching a different audience than the sportsbook, adding that there is "very minimal, if any, cannibalization happening."
DraftKings said annualized total trading volume across Predictions climbed from $2.3 billion in April to $11 billion in July. The company also said it now offers more than 30 markets per MLB, NBA, and WNBA game, and that those markets are approaching 20% of total Predictions volume. Robins called its parlay-style "Combos" product "an absolute smash."
For California readers, the most notable detail is that DraftKings identified California as one of the states showing strong new customer growth for Predictions, despite the absence of regulated statewide online sports betting.
DraftKings plans heavier spending as exchanges expand
DraftKings said it plans to spend another $200 million to $300 million on Predictions this year. Robins said the company is marketing the product through partners including ESPN, NBC, Amazon, and sports leagues.
The company also said it launched its in-house DKeX exchange in June and received National Futures Association approval as a futures commission merchant in July. Robins said DraftKings markets are now live on three trading exchanges and that DKeX will be phased further into the company’s own platform in the coming months.
What to watch next
DraftKings is already live with mobile sports betting in 27 states plus Washington, D.C. and Puerto Rico, while offering sports through Predictions in 18 other states. For California players, the main question is whether prediction markets continue to grow as an alternative product in states without regulated sports betting. Readers should also watch for more detail on DraftKings’ exchange rollout and future earnings updates. If you choose to gamble, do so responsibly.
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Source: As reported by sbcamericas.com.
