DraftKings Predictions hits $11B run rate as DKeX expands role
DraftKings Predictions has reached an $11 billion annual run rate in trading volume, and the DKeX exchange is taking a larger role in the operation. The company reported a revenue dip even as its CEO expressed confidence DraftKings can win the prediction markets race. More than 600,000 users have engaged with the product since the start of the year. Meanwhile, Flutter is moving FanDuel Predicts' sports and novelty contracts to Crypto.com.
DraftKings' volume figure forces a direct comparison with Kalshi's annualized numbers and Robinhood's $156 million quarterly event-contract revenue. The CEO's claim that prediction users grow the sportsbook rather than cannibalize it is now testable against this scale. If DraftKings can convert even a fraction of that $11 billion run rate into parlay or in-play sportsbook handle, the cross-sell story holds.
If the overlap is larger than claimed, the heavy promotional spending becomes a drag. DKeX taking a bigger role suggests DraftKings is building owned infrastructure rather than depending on outside exchanges like Robinhood does with Kalshi and Rothera. The NFL season will show whether sportsbook-born prediction markets can outrun their cannibalization risk.
DraftKings' $11 billion run rate lands just as Flutter shifts FanDuel Predicts contracts to Crypto.com and its own CEO departs, leaving two sportsbook-born prediction products on sharply diverging paths.