DraftKings CEO Explains Why They Entered the Predictions Market

DraftKings has been operating a predictions market app for almost a year now, but it’s something that CEO Jason Robins had been thinking about for a while. Speaking at TheWrap’s Grill business conference on Wednesday, Robins explained that the jump from DraftKings’ current model to adding a predictions app was a no-brainer, especially as Polymarket and Kalshi jumped in. “We saw other companies getting into that space, and we knew that this was a space that, based on our experience, based on the technology that we had built, that we should be able to serve the customer in the best way and win, so we decided to enter,” he told moderator and Wrap editor-in-chief Sharon Waxman. Robins said DraftKings had actually talked about partnering with Kalshi on predictions for the 2024 election, but it didn’t pan out. Regardless, Robins sees DraftKings Predictions as “a good substitute” in places where online sports betting is illegal, like California. Given that Donald Trump Jr. is an investor in Kalshi and Polymarket, Waxman asked if Robins feels they have an unfair advantage. “I’m used to that in my industry,” he said. “I actually don’t think there’s really an unfair advantage here, to be honest. I think that we are given essentially the same licenses, the same things by the federal government. I think the difference, which isn’t necessarily because of that involvement, is that the states are now in litigation with Kalshi.” Indeed, federal and state appeals courts have ruled that Kalshi sports is subject to state gambling laws. Robins said he looks forward to having legal clarity, but for now is happy with where DraftKings Predictions is at. “We feel like we have all the opportunity we need to compete in the prediction space. We’re looking forward, obviously, to this traveling through the court system because it would be nice to get some clarity. It is hard to invest into something when you don’t know if it’s going to be around in the next year or two,” he said.