DraftKings CEO Jason Robins Talks Prediction Market Surge

Summary

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Bloomberg Talks: DraftKings CEO Jason Robins Talks Prediction Market Surge

Date: May 8, 2026
Host: Bloomberg
Guest: Jason Robins, CEO of DraftKings

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Episode Overview

This episode features a timely interview with Jason Robins, CEO of DraftKings, focusing on the company's expansion into prediction markets, how these markets are transforming DraftKings’ business, and what it means for the broader landscape of legal wagering and customer engagement. Robins addresses the current status and future growth prospects of the prediction market segment, discusses regulatory uncertainties, explains DraftKings’ approach to non-sports prediction contracts, and touches on financial strategy and shareholder returns.

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Key Discussion Points and Insights

1. DraftKings' Core Business and Growth

• Sportsbook and iGaming Remain Core:
  • “The bulk of our business is in prediction markets still. That's still a very new business for us. Our core business is Sportsbook and iGaming and both of those are doing very well.” (Jason Robins, 00:45)
  • DraftKings reported 17% revenue growth in the last quarter, with Q2 starting strong and April revenue up 22%.
• Future Upside from Prediction Markets:
  • Notably, recent results don't include prediction markets, offering further upside potential.

2. User Behavior in Prediction Markets

• Early User Patterns Mirror Sportsbook:
  • “It's very early, but it's very similar to what we're seeing on our Sportsbook product. Very similar type of customers, similar engagement in terms of the sports that they like...” (Jason Robins, 01:25)
  • March Madness stood out with even stronger engagement relative to other sports.

3. Product Readiness and Competitive Landscape

• Launch and Customer Acquisition:
  • The DraftKings prediction market product has been live since December and has recently been integrated into the main "super app."
  • “We just launched the super app version... and already we're seeing customer acquisition costs plummet. We had about a 90% decline over the last month or two.” (Jason Robins, 01:50)
• Market Impact Potential:
  • The super app opens access to nearly half the U.S., including major states (California, Texas, Florida) where online sports betting is not yet legal.
  • “It will take time for them to ramp. But I think it’s going to happen pretty quickly, starting this NFL season and beyond.” (Jason Robins, 02:17)

4. Legal Uncertainties and Strategy

• Supreme Court and Regulatory Outlook:
  • The host suggests DraftKings is planning with optimism around legal affirmation of prediction markets.
  • Robins is cautious but prepared for multiple legal outcomes:

    “We just need to make sure we're prepared regardless of the outcome... If [the Supreme Court] ends up affirming this, then it represents a huge new market opportunity... we're pretty happy either way and we'll see what happens.” (Jason Robins, 03:05)

5. Expanding Beyond Sports: Political and Non-Sports Contracts

• Product Offering Scope:
  • DraftKings offers contracts on politics, economic data, and cultural events.
  • “We do offer those. We have a number... particularly the politics ones, get decent amounts of volume... They’re very important from a customer engagement standpoint.” (Jason Robins, 03:49)
  • Nevertheless, sports contracts make up the vast majority (90% or more) of trading volume, especially during NFL season.
• Engagement Value:
  • Non-sports markets are viewed as important for customer curiosity and engagement, akin to tracking polls during elections.

6. Financial Strategy and Shareholder Returns

• Profitability and Stock Buybacks:
  • DraftKings has now posted two consecutive quarters of positive net income and has initiated share buybacks.
  • “We started generating meaningful cash flow last year... we’re going to use at least some of that capital to buy back stock... Our overall commitment is that we are aiming to try to offset any dilution so that our share count stays neutral and maybe even declines a little bit over time.” (Jason Robins, 04:38)

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Notable Quotes & Memorable Moments

• On Market Opportunity:

  • “What this does is it allows us to offer a product to customers in nearly half of the country that we don't have online sports betting... So it will take time, but I think it's going to happen pretty quickly, starting this NFL season and beyond.” (Jason Robins, 02:17)

• On Legal Strategy and Supreme Court:

  • “I don't want to predict what the Supreme Court’s going to do... we just need to make sure we're prepared regardless of the outcome.” (Jason Robins, 03:05)

• On Customer Engagement Beyond Sports:

  • “A lot of people just like looking at them (political prediction markets)... it’s almost a substitute for looking at polls... even though not a lot of volume goes there, we view them as a very important part of customer engagement.” (Jason Robins, 03:49)

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Timestamps for Important Segments

• 00:45: DraftKings’ business mix and Q2 growth numbers
• 01:25: User behavior in prediction markets
• 01:50: Product readiness, super app launch, and lowered customer acquisition cost
• 02:17: Expansion potential in new states without sports betting
• 03:05: Strategy considering possible Supreme Court decisions
• 03:49: Non-sports prediction contracts and their role
• 04:38: Financial strategy—profitability and commitment to share buybacks

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Episode Takeaways

• DraftKings is leveraging prediction markets to accelerate U.S. growth, particularly where traditional sports betting is not yet permitted.
• The company’s new “super app” unifies offerings, dramatically improves efficiency, and enables national expansion.
• While regulatory uncertainty remains, DraftKings is positioning itself for success in both favorable and unfavorable legal scenarios.
• Political and event-based markets, though lower in volume, play a meaningful role in user engagement.
• Recent financial performance—including positive net income and share repurchases—signals a new phase for DraftKings’ capital strategy.

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Transcript

[Narrator/Announcer]

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[Interviewer/Host]

Bloomberg Audio Studios Podcasts Radio News Jason Robbins is CEO of DraftKings and he joins us now. Jason, always a pleasure to speak with you and there's a lot to it comes to prediction markets. We'll dig into that shortly because I'm sure it's taking up a lot of your and your company's mind space right now. What part of your business is not affected by prediction markets and how's that going?

[Jason Robbins]

Well, the bulk of our business is in prediction markets still. That's still a very new business for us. Our core business is Sportsbook and iGaming and both of those are doing very well. We had 17% revenue growth. Really great quarter from a profitability perspective and April has been a great month. Q2 is off to a great start. We mentioned on our call April revenue was up 22%, so really strong growth and I think the most exciting piece that is in the future prediction markets. That's not even in the numbers yet, so hopefully that'll provide even more upside.

[Interviewer/Host]

Absolutely. What have you observed about how your customers use and interact with these sports events contracts?

[Jason Robbins]

Well, it's very early, but it's very similar to what we're seeing on our Sportsbook product. Very similar type of customers, similar engagement in terms of the sports that they like a little bit more on March Madness, relatively speaking than we saw in some of the other sports, which is interesting. But overall looks very much like the same type of customer that we got in Sportsbook.

[Interviewer/Host]

When do you think this app will be ready and will it be positioned to challenge rivals like Kalshi?

[Jason Robbins]

And it's ready already. We've been in market since December, but it's really improved a ton. And we just launched the super app version, which is the combination of it into the main app a few like about a month or so ago and already we're seeing customer acquisition costs plummet. We had about a 90% decline in customer acquisition costs over the last month

[Interviewer/Host]

or two and you said it's still not a big part of your business, but how big of a game changer could this be down the line?

[Jason Robbins]

Well, what this does is it allows us to offer a product to customers in nearly half of the country that we don't have online sports betting that includes the three largest states, California, Texas and Florida by population that is now an addressable audience for us. So it will take time for them to ramp. But I think it's going to happen pretty quickly, starting this NFL season and beyond. And we're planning on investing as long as the numbers are good. But so far, we really like what we're seeing and we're excited about the potential for this to be a huge growth lever for us for several years to come.

[Interviewer/Host]

The fact that you're offering a prediction market product and that you are getting ready for this super app, this unified app, would suggest that you and the rest of management expects the legal status of those markets to be ultimately affirmed by the Supreme Court. Is that a fair statement?

[Jason Robbins]

Well, I don't want to predict what the Supreme Court's going to do. It's always tricky on something like that. We just need to make sure we're prepared regardless of the outcome. And I do think that we'll be in a great position no matter what that ruling is. If it ends up that, you know, the Supreme Court strikes this all down, then, you know, we go back to having less competitors like the couches of the world out there. But if they end up affirming this, then it represents a huge new market opportunity that we're just beginning to tackle. So we're pretty happy either way and we'll see what happens.

[Interviewer/Host]

I mean, your business is sports, whether it's through the traditional sports books or through these sports events contracts. Do you plan to offer events contracts on non sports events like politics, for instance, economic data, cultural events?

[Jason Robbins]

We do offer those. We have a number of those. I think particularly the politics ones, get decent amounts of decent amounts of volume. Obviously, the bulk of the industry, no matter which prediction platform you look at, is sports. It's true, you know, almost 90%. It'll be north of 90% once the NFL season hits. But those are, even though they don't get as much volume, are very important from a customer engagement standpoint. I think a lot of people just like looking at them and it's almost like a substitute for looking at polls to see how people are doing in elections and things like that. And I think it's almost a novelty, just, you know, an eyeball kind of catching things. So even though not a lot of volume goes there, we view them as a very important part of customer engagement.

[Interviewer/Host]

And you've now posted two straight quarters of positive net income and brought back stock. Does that signal a new phase for capital allocation at your company?

[Jason Robbins]

Well, we started generating meaningful cash flow last year. It's ramping into this year, and we've always said that, you know, we're going to use at least some of that capital to buy back stock. I think depending on how things go, we may buy back more or less in any given period of time. But our overall commitment is that we are aiming to try to offset any dilution so that our share count stays neutral and maybe even declines a little bit over time.

[Narrator/Announcer]

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