DraftKings Confident Sports Event Contracts Will Not Hurt Sports Betting Relationships

• DraftKings CEO Jason Robins said during today’s Q3 earnings call the company has kept state gaming commissions abreast of their decision to offer sport event contracts
• Company has good idea of what states are sensitive to issue and will be “respectful of other stakeholders”
• Sees prediction markets and sport event contracts as potential catalyst for further sports betting, iGaming legalization

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DraftKings announced DraftKings Predictions, and sports event contracts, will be launch in the coming months, but CEO Jason Robins is confident it will be done so in a way that is respectful of states and regulatory bodies that may have a problem with the markets.

Robins discussed DraftKings Predictions and its upcoming launch during today’s Q3 earnings call, describing the predictions market as a “significant incremental opportunity” for the company. However, DraftKings has taken steps to ensure the launch of its prediction market service is “respectful of other stakeholders.”

“We will be thoughtful in how we launch DraftKings Predictions and do so in a way that is respectful of other stakeholders. As such, we plan to focus on the states where we do not offer sportsbook, which also is where we believe the vast majority of the financial opportunity exists,” he said.

Reaching Out To Regulators

The idea of launching sports event contracts is a touchy one, as numerous states and gaming bodies have warned license holders to not offer contracts or get involved in the markets.

In today’s call, Robins said DraftKings has continuously communicated its plan to enter the market space with state regulators and policy makers, having kept them updated on their efforts to acquire Railbird Technologies and their future plan to offer sports event contracts.

DraftKings, he said, has “a good idea of where the sensitive areas are” and will focus its sports event contract efforts in states without legalized sports betting.

“In the coming months, we expect DraftKings Predictions to enter many states with sport event contracts, unlocking a new customer base and revenue stream. Nearly half the country’s population remains without access to legal online sports betting, but there are several other companies offering federally regulated predictions in all 50 states,” Robins said.

He touted DraftKings capabilities of superior customer acquisition, product development, regulatory compliance, responsible engagement, and “other critical factors” it takes to win in the space.

“We will pursue this opportunity, we will compete, and we will win,” he said.

But it remains a touchy subject for many states. Several gaming regulatory bodies have already warned sports betting license holders to not offer sports event contracts or partner with those who do. Doing so could potentially put DraftKings’ sports betting licenses at risk, several of them have declared.

Both the Michigan Gaming Control Board and Ohio Casino Control Commission have warned their license holders to not engage in the markets. The board sent letters to licensed operators earlier this month warning them that any participation in the market would play into the board’s decision for future licensure in the state.

The Ohio Casino Control Commission sent similar letters to its operators, which led prediction market company Kalshi to file a lawsuit against the commission and the Ohio Attorney General. Arizona and Nevada regulatory gaming bodies have also sent similar letters to gaming operators.

Sports Betting Dime reached out to these gaming boards for comment on DraftKings’ decision to offer sports event contracts. The Ohio Casino Control Commission noted it had no comment at this time, while the others have yet to respond.

Sports Event Contracts Good for Legalization?

With the rising popularity of sports event contracts, Robins said it may prove to be catalyst for remaining states without legalized sports betting or iGaming. Nearly half of the U.S. population lives in states without legalized sports betting.

“As growth in predictions continues, this may also motivate more states to legalize online sports betting and iGaming with reasonable regulation and taxation,” he said.

Additionally, Robins said, it may also give pause to state legislators considering increases in sports betting or iGaming tax rates. Prediction markets and sport event contracts provide companies with another option outside of their traditional gaming ventures.

If taxes get too high, Robins said, it may cause operators to pivot to other opportunities, such as sports event contracts.

Bullish on DraftKings Future

DraftKings reported revenue of $1.14 billion in Q3, an increase of 4% compared with the same period in 2024. Adjusting for sports betting outcome impacts for the three months ending Sept. 30, 2025, the third quarter revenue growth was strong. In October, sportsbook handle increased 17% year-over-year.

“This is the most bullish I have ever felt about the future of DraftKings. That may sound surprising given we are revising our fiscal year 2025 guidance ranges today, however, underlying growth in our business is accelerating. We are also increasingly advantaged through new exclusive marketing agreements with ESPN and NBCUniversal as well as our leading product offerings continuing to improve,” he said.

Robins did report that DraftKings lost nearly $300 million due to customer friendly sports betting outcomes in September and October.