DraftKings Reports Growth Across Sportsbook, Casino And Predictions

DraftKings chief executive Jason Robins told the Wells Fargo Consumer Conference on Tuesday that all three of the operator's core products are performing strongly, according to Legal Sports Report.

Robins said DraftKings is holding its own against prediction market rivals Kalshi and Polymarket on sports volume share, while sportsbook handle growth has been robust and online casino share is recovering after a period of decline.

He confirmed the core sports betting and casino business is on track for roughly $1 billion in adjusted EBITDA in 2026, a figure he said should rise materially in 2027. Further detail on next year's outlook will come at the company's third-quarter earnings call in November, Robins said. DraftKings shares were trading up around 2% after the call ended at noon Eastern.

Robins pushed back on fears that prediction markets are eating into sportsbook volume, saying handle is up 15% month to date since the NFL season began. He acknowledged that a late Labor Day, which leaves September with three NFL betting Sundays compared with four a year earlier, could complicate comparisons in monthly revenue figures.

Customer acquisition also remains healthy in states where DraftKings has operated for years, Robins said, with trailing 12-month active customers sitting at roughly 11 million to 12 million, a number he expects to keep climbing.

Parlay handle as a share of total handle has risen three percentage points to start the season, which Robins called a better result than the company had expected, adding that the ceiling for that growth has yet to be found.

On DraftKings Predicts, Robins said consumer volume is running at about 2.5 times the $11 billion annualised rate reported for July, with more than a million customers already using the product and multiple millions expected by season's end. He said DraftKings is approaching a double-digit share of sports prediction volume overall, higher still when isolating NFL trading, and that it now offers three times as many NFL markets as competitors and around 1.5 times as many in college football and MLB.

Robins argued DraftKings has moved from what he called a middling product roughly eight to ten months ago to the strongest sports offering in the market, and compared the current wave of prediction market competition to the online sports betting landscape between 2020 and 2022, when many rivals were later bought or shut down.

Combination bets, or combos, are also gaining traction quickly: Robins said DraftKings reached almost 30% combo mix on last weekend's NFL Sunday, a level it took more than five years to reach with traditional sportsbook parlays.

Robins said the strong conversion rates DraftKings is seeing could push customer acquisition spending on predictions higher than initially planned, with final figures depending on further data and expected to be shared on the November earnings call. He said any increase in spending would not necessarily carry over into 2027.

Asked about the pending Supreme Court decision on sports contracts, Robins said DraftKings is comfortable regardless of the outcome, noting the stock would likely rise if prediction markets were banned outright, but that the company is well positioned either way.