CNBC Television
We view prediction markets as an opportunity, says DraftKings CEO Jason Robins
11/7/2025, 12:26:18 AM
Economic Summary
- Near-term adoption momentum for prediction markets is evident, creating an opportunity for operators to participate without displacing existing sportsbook revenue.
- Prediction-market offerings are currently thinner with fewer markets and weaker pricing than full online sportsbooks, which constrains their market share potential.
- Evidence from the UK and Western Europe shows exchange-based betting typically captures low-to-mid single-digit percent of total industry volume, implying limited migration away from sportsbooks.
- Operators see the largest commercial opportunities where regulatory clarity exists—examples cited include California and Texas—so financial opportunity aligns with favorable regulation.
Bullish
- Near-term momentum for prediction/predictions-like products is strong and they look likely to persist.
- These products can generate real interest and incremental revenue in large untapped states like California and Texas.
- Sharps restricted by traditional books may migrate to prediction markets, creating additional activity rather than cannibalization.
Bearish
- Kashi's product is described as much thinner and less robust than full online sportsbooks, limiting competitiveness.
- Exchange-based/prediction markets historically take only low-to-mid single-digit market share in the UK and Western Europe.
- Pricing and market depth in prediction markets aren't competitive, so sportsbooks likely retain the majority of volume.
Bearish tickers
KASHI
KASHI
Bullish
Near-term momentum and interest in large states could drive incremental activity and serve restricted 'sharps.'
Bearish
Product is thinner with fewer markets and inferior pricing, so unlikely to take material share from full sportsbooks.
People mentioned
Jim Cramer