TLDR
- DraftKings CEO Jason Robins said the company’s DKeX exchange is now the third-largest prediction market exchange in the US.
- DKeX launched in late June and is fully owned and run by DraftKings.
- DraftKings Predictions is live in 38 states, with the full set of event contracts offered in 18.
- The company does not offer sports event contracts in states where it runs a traditional sportsbook.
- Robins said DraftKings is in a “win-win” spot no matter how the legal fight over sports event contracts ends.
DraftKings CEO Jason Robins says the company’s prediction market exchange has climbed to third place in the United States. He made the comments on October 22 at the NEXTPredict Summit in New York City.
The exchange, called DKeX, launched in late June. It is an in-house platform, which gives DraftKings full control over how its prediction market business makes money.
Robins said the company is “already the clear number three” only a few months after launch. He added that DraftKings continues “to gain share.”
He also said being “a relevant player in the market” that looks to be “on the rise” is bringing the company more attention.
A Fast Climb in a Crowded Market
Most US prediction market volume is held by two large operators. In the next tier, DKeX is seen as one of the strongest competitors.
Data show the exchange gained slightly more market share in September. That gain came about three months after the exchange went live.
The September figures were tracked in an industry report on prediction market volume.
DraftKings Predictions, the company’s wider prediction market platform, is available in 38 states. The full suite of event contracts is offered in just 18 of them.
California, Florida and Texas are among the states where DraftKings Predictions is available.
In states with active DraftKings sportsbooks, such as Colorado, New York and Pennsylvania, the platform only offers financial event contracts.
Why DraftKings Holds Back on Sports Contracts
Robins said DraftKings would have a bigger presence in prediction markets if it could offer sports event contracts in states like New York. But he said the company chose not to offer sports derivatives where it already takes traditional sports bets.
“The alternative was we would have had our licenses under threat, and I think that wouldn’t have been a smart move,” he said.
Many experts believe the legal future of sports event contracts may be decided by the US Supreme Court. The timing of any such ruling is not known.
Robins said some companies “have really staked a lot on one outcome or the other.” He said DraftKings took a different approach.
“So we actually feel like we put ourselves in this win-win spot where no matter what the outcome of that whole process is, we are well positioned going forward,” he said.
Robins added that he hopes sports event contracts are allowed over the long term. If that does not happen, he said, DraftKings is still “in a great spot.”
