**DraftKings CEO Jason Robins on Prediction Markets and Sports-Betting: “Night and Day” Difference**
On Thursday, DraftKings CEO Jason Robins appeared on CNBC’s “Mad Money” with Jim Cramer to discuss the evolving landscape of sports-betting and prediction markets. Robins emphasized that prediction markets are not replacing traditional sports-betting products, noting fundamental differences in experience, market scale, and pricing depth.
“Simply going and spending five minutes looking at the products, you’ll see what I mean. It’s night and day. The amount of markets, even the pricing, isn’t something that I would view as competitive with what we do,” Robins explained.
He pointed out that users still overwhelmingly prefer the sportsbook format for wagering on sports outcomes due to its volume, variety, and familiarity. Supporting his view, Robins referenced the situation in the U.K. and Western Europe, where exchange-based betting holds only a low to mid-single-digit market share alongside traditional sportsbooks.
“This shows there is no large migration away from sportsbooks,” he said. “Sports-betting is tied to how fans watch and follow live competition, whereas prediction markets tend to focus on broader, non-sports events like elections, awards, and other outcomes.”
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### DraftKings Ventures into Prediction Markets, While Defending Sportsbook Focus
Despite his comments, Jason Robins revealed that DraftKings is entering the prediction market space. Last month, the company acquired RailBird and plans to launch a mobile app enabling users to bet on outcomes in areas such as entertainment and finance.
Robins described this move largely as a strategic expansion into states where online sports-betting remains illegal, including California and Texas. “This allows us to be active in those large markets while gaming laws continue to develop,” he said.
He added, “I think the reality is that at least for the near term, it looks like the momentum is here. They’re here to stay. And so, I think with that in mind, we need to participate, and we should have the tools to win.”
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### DraftKings Reports Quarterly Earnings, Lowers Full-Year Sales Outlook
After the market closed on Thursday, DraftKings released its quarterly earnings report, which showed revenue of $1.144 billion—up $49 million from the prior year. Revenue growth of 4% was driven by “strong customer engagement, efficient new customer acquisition, and a higher sportsbook hold rate,” which increased 17% year-over-year, according to the company.
Despite the positive metrics, DraftKings lowered its full-year sales outlook, sending its stock down more than 5% in after-hours trading.
Robins remained optimistic: “This is the most bullish I have ever felt about our future.” He also revealed that the company plans to launch DraftKings Predictions in the coming months, describing it as an incremental growth opportunity.
CFO Alan Ellingson highlighted continued growth in handle and parlay activity, which is improving free cash flow. He also announced an increase in the company’s share repurchase program from $1.0 billion to $2.0 billion.
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### Strong User Metrics and Raised 2025 Revenue Guidance
DraftKings’ monthly Unique Payers (MUP) increased 2% to 3.6 million, fueled by strong retention and new sign-ups. Without the acquisition of Jackpocket, growth would have been 6%. Average revenue per MUP reached $106, up 3% compared to the prior year.
The company raised its 2025 revenue guidance to between $5.9 billion and $6.1 billion, representing 28% growth over 2024 figures. Adjusted EBITDA guidance was set between $450 million and $550 million.
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As DraftKings balances its core sportsbook business with new ventures into prediction markets, the company signals confidence in the evolving betting landscape and its ability to capture opportunities across multiple sectors.
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https://bitcoinethereumnews.com/finance/draftkings-ceo-says-sports-betting-still-dominates-despite-rise-of-prediction-markets/