DraftKings CEO Highlights Predictions Market Momentum Despite Q2 Revenue and EBITDA Declines

DraftKings CEO Jason Robins pointed to faster-than-expected growth in the company’s predictions business as the standout element of its second-quarter performance. The operator posted declines across key financial metrics yet maintained full-year guidance while outlining plans to scale the new vertical.

DraftKings reported total revenue down 4.6% year over year, adjusted EBITDA plunging 62% to $115 million, and a $67 million net loss. Robins described the overall results as “fantastic” on the August 7 earnings call, with the predictions segment driving the positive tone, as reported by SBC Americas.

Predictions Volume and Customer Acquisition Surpass Forecasts

Robins stated that the newly launched predictions offering is “growing faster than we anticipated.” More than 600,000 customers engaged with DraftKings Predictions in the first half of 2026, a pace that “far surpassed our expectations.” Customer acquisition rose almost 75% year over year, producing approximately 30% more customers than projected.

Combined Sports Consumer Volume reached $13.1 billion, an increase of $1.7 billion (15%) from the same period in 2025. Annualized trading volume across the predictions product almost quintupled from $2.3 billion to $11 billion between April and July. The company has rolled out more than 30 markets per MLB, NBA, and WNBA game, with parlay-style Combos now approaching 20% of total predictions volume and described by Robins as “an absolute smash.”

Minimal Cannibalization and the Case for Incremental Spend

Robins reported only around 1% customer overlap between the sportsbook and the largest predictions operator in regulated states. He added that 80% to 90% of sports prediction market volume in those states comes from professional betting syndicates and institutional traders—volume the sportsbook would not have captured.

“There is very minimal, if any, cannibalization happening,” Robins said. The company plans $200 million to $300 million in additional spend on predictions this year and intends to shift most sports content onto its own DKeX exchange for the fall season. DraftKings held its full-year guidance of $6.5 billion to $6.9 billion in revenue and $700 million to $900 million in adjusted EBITDA, in contrast to Flutter’s recent cut. Its share price recovered to roughly $23.25, though it sits down about 51% from $48 over the last 12 months.

The earnings contraction and heavy marketing investment highlight execution risk if the education period in states such as California and Texas takes longer than anticipated. Still, the distinct professional audience and rapid volume ramp position predictions as a clear additive channel. How quickly that awareness translates into sustained acquisition during the NFL season will set the pace for the remainder of the year.

Reporting: SBC Americas

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