Dual investor says DraftKings validates Kalshi's market while trying to take it
Joel Shulman, founder and chief investment officer of ERShares, holds stakes in both DraftKings and Kalshi through the XOVR ETF. He argues that DraftKings is validating Kalshi's prediction market model even as DraftKings tries to capture that same market for itself. Shulman made the comments after DraftKings missed revenue expectations last week, when prediction markets dominated the company's earnings call. DraftKings has pursued an aggressive push into event contracts.
Shulman's dual position reframes the competition as mutually legitimizing rather than zero-sum. For DraftKings, his validation story helps justify spending to investors who fear cannibalization of the core sportsbook. For Kalshi, a larger rival's entry proves the market is real, which attracts traders and may ease regulatory resistance.
The real test comes when DraftKings' actual overlap figure diverges from the 1% estimate cited. If overlap is larger, Shulman's validation narrative collapses and both holdings suffer. Either way, his voice matters because ERShares' XOVR ETF ties his credibility to both outcomes simultaneously.