DraftKings CEO hints at adding betting prediction markets ahead of next US election

DraftKings CEO Jason Robins has revealed the firm is mulling over whether to expand into the election betting market ahead of the next presidential election. 

Just days after Donald Trump was voted the 47th US president, Robins admitted DraftKings could soon look to throw its hat in the ring when it comes to non-sports betting prediction markets, with a focus on future presidential elections in particular. 

In the weeks leading up to the conclusion of the current election process, the demand from customers to engage with political betting was evident through trading platforms like Robinhood, which enabled users to trade based on their prediction of who would win the election battle – Trump or opposing Democrat Kamala Harris. 

With Trump’s victory barely three days old, Robins was pressed during the firm’s Q3 2024 analysts call for comment on whether the Boston-based operator would add this type of offering to its product portfolio. 

“I think it’s a very interesting thing,” the CEO remarked. “The market within [the non-sports betting market] that is dominant is election markets of course, and particularly during presidential elections. 

“I know there’s a lot of tension attention? on it over the last few weeks, and I do think there could be a place for it outside of elections, but that’s really where the interest seems to be now from a customer-demand side.” 

He continued: “It’s definitely something we’re looking at in advance of the next presidential election and potentially it will be an opportunity to look at something sooner. It’s a different framework, it’s not licensed as a betting product; it’s licensed as a financial market. 

“It’s a very different thing, so we’ll have to see where it fits in the priority list, but it is something we’ll plan on looking at ahead of the next election, for sure.” 

Last month, legal election markets for US presidential elections were approved despite an appeal from the Commodity Futures Trading Commission (CFTC), which was rejected on October 2 by the US Court of Appeals for the District of Columbia. 

The CFTC had previously banned prediction market Kalshi from listing election markets last year, but had no such success a second time around, with Judge Jia Cobb ruling in favor of Kalshi on September 12. 

Elsewhere, Robins shared his thoughts on the states that could be next to regulate after Missouri voted in favor of legalizing online sports betting earlier this week. 

The CEO said: “It’s always hard to predict states at this point, everybody is now finally turning their attention from the election to the upcoming legislative sessions next year. 

“Minnesota got very close to the goal line last year so hoping we can get that one across this year.” 

Robins identified New York and Illinois as igaming expansion targets that “could potentially have some momentum,” as well as Maryland and North Carolina as states that could legalize igaming within the “next year or two.” 

He signed off the call on the topic, explaining: “It’s early. We have just come off the election. But, based on where the momentum was and where we were during the last set of sessions, I think those are some of the ones [states] to keep an eye on.” 

Robins’ comments came in the aftermath of DraftKings’ Q3 results release, which posted 39% revenue growth and a top-line figure of $1.1bn, a notable rise from the $790m generated in the corresponding period last year. 

However, the operator saw a decline in adjusted EBITDA to $58.5m, $95m less than the $153.4m generated during the third quarter of 2023, while losses from operations rose $12m to $298.6m.  

In a note to shareholders, Robins also revealed that DraftKings’ sportsbook gross gaming revenue (GGR) saw a 39% year-on-year (YOY) increase, while igaming GGR climbed 26% on Q3 2023. 

DraftKings made a corresponding downward revision to both its 2024 revenue and adjusted EBITDA estimates, citing “customer-friendly sport outcomes” in the early exchanges of Q4 as the reason for the declines.  

The revised revenue midpoint is now expected to land at $4.95bn, falling from a previous estimate of between $5.05bn and $5.25bn.  

Adjusted EBITDA for the fiscal year 2024 is now anticipated to range between $240m and $280m, a significant drop from the previous guidance of $340m to $420m announced on August 1. 

Analyzing DraftKings’ Q3 results, Robins said: “DraftKings delivered strong performance in the third quarter with the return of NFL and college football. 

“With major sports converging on the calendar, we are well-positioned to build on this momentum as we further enhance our top-ranked sportsbook app with additional live betting features and exciting new NBA markets.   

“Our focus remains on driving sustainable revenue growth and profitability in 2025 and beyond.”