Online sports betting business may not let another cycle of governmental election marketing and wagering pass them by without taking a few of that action themselves.
The huge quantity of betting on this year's election was undoubtedly difficult to miss out on - and DraftKings Inc. now prepares on taking a long seek to see if there are opportunities for itself in the forecast market business.
That is at least what DraftKings CEO Jason Robins said throughout the Boston-based company's Friday early morning teleconference for analysts and investors.
One expert asked Robins for his ideas on "non-sports wagering prediction markets" and whether there is an opportunity there for DraftKings.
"I believe it's a very fascinating thing," Robins replied. "The marketplace within that that's dominant is election markets, obviously, and particularly throughout presidential elections. So I understand there's a lot of tension on it over the last couple of weeks. I do think there could be a place for it beyond elections, but that's actually where the interest appears to be now from a ... consumer demand side. So, certainly something we're taking a look at in advance of the next governmental election, and potentially it'll be a chance to look at something quicker."
RFK Jr.'s chances of a Cabinet election continue to fall
82% the other day, now 68% pic.twitter.com/ON61pv3Cqh
Robins added that it is a "different structure" for forecast markets, which provide bettors the possibility to bet on U.S. election odds, to name a few things.
Most significantly, Kalshi, Robinhood, and others are regulated by the Commodity Futures Trading Commission, not state gaming watchdogs.
"It's not certified as a betting product, it's licensed as a monetary market," Robins said. "It's certainly a very various thing. So we'll have to see where it suits the concern list, however it is something we'll plan on looking at ahead of next election for sure."
There was huge interest in wagering on the 2024 governmental election, to the tune of hundreds of countless dollars staked at entities like Kalshi in the U.S. and Polymarket and Betfair abroad.
The remarks from the CEO of one of the biggest online gaming companies in the U.S. suggest sports betting and web gambling establishment betting operators have an interest in a few of that organization for themselves.
That has the potential to shake up the prediction market industry ahead of the next presidential election, and potentially even before. DraftKings, FanDuel, and other online gaming business already have substantial databases of wagerers, and could quickly take market share from incumbents.
However, as Robins noted, prediction markets are managed differently, so DraftKings or other new entrants would have work to do before they could launch their own variations. His remarks likewise recommend that DraftKings does not expect states to relax their guidelines around election wagering anytime quickly.
Yes we could
Prediction markets provide agreements for particular results that gamblers can buy, such as "yes" that a person prospect will win an election. Bettors can buy and sell these contracts up until they are settled, as the prices change based upon trading activity and the news.
For example, somebody could have purchased a "yes" agreement for Donald Trump to win Tuesday's election for 60 cents. If they are still holding it, they stand to earn a profit of 40 cents, as the settlement value of the contracts is usually $1.
This is different from sports wagering, where users wager on point spreads, moneylines, and totals. DraftKings took sports betting-style wagers on the U.S. election in the Canadian province of Ontario but was barred by state guidelines and policies from doing the same in the U.S.
. That said, lots of sports bettors were most likely betting on the 2024 election through Kalshi and other prediction markets. They could be quick to adopt a DraftKings-branded variation.
A DraftKings prediction market would also fit in with the company's method of trying to ensure its consumers do not do not have online gaming options.
The Boston-based bookmaker offers sports betting, online gambling establishment gaming, horse-race betting, and, via its current purchase of Jackpocket Inc., lotto tickets.
DraftKings says it "experienced the most customer-friendly stretch of NFL sport results we have ever seen early in the 4th quarter." pic.twitter.com/o70EkJRGde
The prediction-market company may help DraftKings and others smooth over the volatility of online sports betting as well, which originates from the truth that sometimes consumers can win and win a lot.
That volatility was on complete display screen in third-quarter financial outcomes reported by DraftKings on Thursday, as the company stated "customer friendly" NFL outcomes in October and November have already forced it to modify its financial projection for 2024.
DraftKings is now assisting for revenue of between $4.85 billion and $4.95 billion this year, and changed EBITDA of $240 million to $280 million. The tough run of NFL results helped reduce the profits estimate by $250 million and the changed EBITDA forecast by $120 million, the business said.
1
DraftKings Eyeing Prediction Betting Opportunities Ahead of Next Election
brigidalockett edited this page 2026-04-29 04:48:31 +02:00