DraftKings CEO Jason Robins said the company plans to launch and expand prediction markets as a new product line [1].
This move signals a strategic shift to capture a growing segment of the betting market while using the product as a lever to influence state-level legislation. By introducing prediction markets, DraftKings aims to create regulatory pressure on U.S. states that have not yet legalized sports betting [1, 3].
Robins said these plans during an interview on CNBC’s “Closing Bell: Overtime,” which aired in early 2025 [1, 2]. The interview took place in New York City, where the company maintains its headquarters [1, 4].
According to Robins, the company is pursuing these markets to leverage AI technology and expand its reach [1, 3]. The strategy involves using prediction markets to identify and target gaps in current state laws, a move intended to force a conversation on broader sports-betting legalization [1, 3].
There is some disagreement regarding the company's regulatory strategy. Some reports suggest DraftKings will use these markets specifically to pressure states on sports-betting legislation [4]. However, other reports indicate that DraftKings and Flutter may adopt different rules for prediction markets, suggesting a more cautious, state-by-state approach [5].
Despite these differing perspectives on the rollout, the overarching goal remains the growth of the betting business through diversification. By moving beyond traditional sports wagering, the company seeks to integrate AI-driven forecasting into its user experience [1, 3].
“DraftKings aims to create regulatory pressure on U.S. states that have not yet legalized sports betting.”
The push into prediction markets represents a transition from simple gambling to a data-driven forecasting model. By framing these products as tools for information and AI leverage, DraftKings is attempting to change the political narrative around betting, potentially making it easier to lobby for legalization in restrictive states by highlighting the utility of prediction markets over traditional sports books.
