DraftKings’ DKeX Platform May Be the Third-Largest in the US, Company in No Hurry, Though

Key Points DraftKings' boss is once again bouyant on prediction markets Robins' is not betting on prediction markets staying per se – his company has hedged against all possible outcomes He acknowledges the challenges of operating both a major sportsbook and a prediction market platform

Key Points

DraftKings' boss is once again bouyant on prediction markets

Robins' is not betting on prediction markets staying per se – his company has hedged against all possible outcomes

He acknowledges the challenges of operating both a major sportsbook and a prediction market platform

DraftKings’ dedicated prediction market platform, DKeX, is doing well, the sportsbook company’s boss has recently commented. In fact, it is doing so well, argues CEO and co-founder Jason Robins, that it may be the third-largest in the United States, speaking at the NEXTPredict Summit in New York City.

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DKeX

DKeX Solidifies Its Footprint in the United States

While Robins has recently commented at SBC Summit Barcelona that his company had no idea whether prediction markets are here to stay, or they will quietly die out – whether because of regulation or market forces – the company simply could not afford not to venture into the vertical.

no idea whether prediction markets are here to stay, or they will quietly die out

DKeX is positioned well in the current market, and it owes much of this to the fact that it is operating under the wing of a company that has ample experience in daily fantasy and traditional sports.

“I think the fact that we have been able to, in a pretty short time frame, put ourselves in the top three exchanges in the market- remember, we only launched on DraftKings Exchange a few months ago,” Robins commented.

“And we’re already the clear number three, which is great, and we continue to gain share. So I think the fact that we are now a relevant player in the market and look to be one of those that is on the rise, I think, is giving us more attention,” Robins explained.

While DraftKings’ prediction market platform is not yet available in all states where its sports betting offer is, the company has a foothold in 18 jurisdictions.

the company has a foothold in 18 jurisdictions

In comparison, it runs its sports betting business in 38 states. DraftKings also has to tread more lightly than legacy prediction market platforms, as it may run into issues with gaming regulators were it to offer sports event contracts, so DKeX has been sticking to mostly financial contracts.

as it may run into issues with gaming regulators were it to offer sports event contracts

No Matter Who Wins, DraftKings Has Hedged Its Bets

Robins has acknowledged that the company has to tread lightly when it comes to prediction markets lest it runs into legal challenges that could affect its main business. In that regard, DraftKings will be exploring prediction markets as a supplementary product that could potentially scale forward.

the company has to tread lightly when it comes to prediction markets lest it runs into legal challenges that could affect its main business

It is not clear what could come of it. The consensus is that gaming regulators won’t stop challenging prediction market platforms until such a time as the Supreme Court of the United States (SCOTUS) has made a decision.

Supreme Court of the United States

Even then, it’s unclear if gaming regulators could pass restrictions arguing that entities cannot be both running prediction markets on sports and traditional sports betting to qualify for a license. Robins noted as much during the NEXTPredict Summit, calling it a “win-win” situation for his company no matter what the outcome of the prediction market legal saga turns out to be.

Robins noted as much during the NEXTPredict Summit

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