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DraftKings CEO Jason Robins said prediction-market wagers tied to what executives say on earnings calls cross a line, adding a new flashpoint to the broader debate over event contracts and how they should be regulated.
In an interview with Bloomberg TV on Friday, Robins said, “Making trades on whether someone will say something on an earnings call is probably not something that should be out there.” His comments came after Kalshi offered markets on whether DraftKings executives would mention Kalshi during the company’s conference call. According to the report, they did not.
Robins draws a distinction on prediction-market offerings
Robins’ criticism is notable because DraftKings has also moved into prediction markets. The company launched its own prediction markets product in December and said it has attracted 600,000 customers.
That leaves DraftKings in a complicated position: participating in the category while also publicly arguing that some contracts go too far. Robins joked that “hopefully not too many people took the positive side of that one” after noting the market on whether DraftKings would mention Kalshi.
The article also says DraftKings trails Kalshi and Polymarket, two platforms that have used event contracts in ways critics say can bypass state gambling laws.
Why the regulatory line matters
The Commodity Futures Trading Commission has said it has jurisdiction over these markets because event contracts are financial derivatives. That distinction matters because prediction markets can be open to customers 18 and older, while traditional gambling products are generally restricted to people 21 and older.
Robins said DraftKings does not market its prediction app to people under 21 and does not present wagers as a way to make money. He also said the industry’s promotional tactics are likely to face more scrutiny, adding, “I think eventually they will get reined in.”
The report notes the CFTC recently told event-betting platforms not to use sports-betting odds in marketing, in an effort to avoid further blurring the line between gambling and prediction markets.
DraftKings also reported mixed quarterly results
The comments came alongside DraftKings’ second-quarter earnings. Robins said profit would have been higher if not for customer-friendly sports-betting outcomes and investment in new customer acquisition. DraftKings also reported that monthly players rose 9% in the quarter, and its shares climbed as much as 7.7% on Friday.
For players, the immediate takeaway is less about a product change and more about where the market may be headed: closer scrutiny of how prediction contracts are designed, marketed, and separated from traditional sports betting.
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Source: As reported by Ed Ludlow and Christopher Palmeri.
