DraftKings plans more prediction market investment as DKNG stock faces worst month since January
DraftKings plans to invest more in its DKeX prediction market even as DKNG stock heads for its worst month since January. The company is targeting $1 billion in DKeX trading volume by December. Kalshi currently leads the regulated prediction market space in NFL event contracts with 76% volume share to DKeX's 3%. CEO Robins has called the prediction market rivalry a 'complete myth' as he tries to separate the stock from segment headlines.
DraftKings is burning cash on a standalone exchange while its stock already trades at a 38% year-to-date discount. The 76% to 3% NFL volume gap against Kalshi is not closing with branding alone. DraftKings must now show DKeX volume growing faster than spending by December, or investors will force the same capitulation.
The first major sportsbook to drop its exchange for a wholesale seat would confirm that event contracts belong to platforms with liquidity, not sportsbook apps. Robins' 'complete myth' framing already failed to decouple the stock. The next earnings call is the last chance to prove DKeX is a viable destination rather than a money pit.