DraftKings CEO Highlights Growth of Prediction Platform

DraftKings saw its revenue dip in Q2, but the results were still a positive for CEO Jason Robins. 

Robins spoke on an earnings call this week and shared that DraftKings Predict has surpassed 600,000 customers since launching back in December. As often highlighted in any thorough DraftKings Predict review, considering the operator’s platform has far more limits, especially around sports, that is a number worth celebrating.

While the company lost nearly $68 million during the second fiscal quarter, he blamed the poor results on new promotions and bettors winning at a higher rate.

“We delivered a strong second quarter and enter the back half of the year with real momentum, as our core business grew across handle, users, and engagement,” Robins shared during the call. “Our Super App is now live nationwide, and Predictions is already growing faster than we anticipated. The similarity of Predictions customer metrics to Sportsbook customer metrics, our advantaged LTV position, and our playbook to innovate on a leading Predictions offering all underpin our confidence that we can win the category this NFL season and beyond.”

In addition to sharing numbers on the call, Robins also called for restricting prediction market apps in the US involving earnings calls. Kalshi hosted these markets for the DraftKings call, which included one asking if the operator’s name would be mentioned. 

Robins didn’t call out Kalshi specifically, but his words were clearly targeting the controversial markets.

Questions Around Predictions Remain

While Robins painted investors a bright picture for the future of DraftKings Predict, the platform also got some negative news this week. 

The operator has seen three new lawsuits filed against the platform over the last week. These are class action suits where plaintiffs are claiming it was offering an illegal form of gambling. Two of those lawsuits came from DraftKings’ home state of Massachusetts, while the third was from South Carolina. 

DraftKings has been careful to limit its prediction platform to avoid being sucked into the legal battle unfolding around the emerging industry. While the operators continue to avoid the wrath of state lawmakers, it could face significant financial losses from the trio of lawsuits.