DraftKings CEO Says 80%-90% of Prediction Trading Is Professional, Not Peer-to-Peer
Updated
Updated · Sportico · Aug 7
DraftKings CEO Says 80%-90% of Prediction Trading Is Professional, Not Peer-to-Peer
3 articles · Updated · Sportico · Aug 7
Summary
80%-90% of volume on DraftKings’ prediction platform in states with legal online sports betting comes from professional syndicates and institutional traders, Jason Robins said, adding the true share may exceed 90%.
Robins argued prediction markets are effectively “peer-to-Wall Street” rather than casual bettor versus casual bettor, warning customers must be told sophisticated model-driven traders usually beat retail users.
DraftKings is using that distinction to position legal sportsbooks as the better venue for ordinary bettors, while casting prediction markets as a product dominated by quants and market makers.
Robins also criticized rivals for giving liquidity incentives to market makers instead of retail users; DraftKings later said its own rebate program exists but no participant has yet qualified.
The comments came after DraftKings’ quarterly report, which kept full-year revenue and EBITDA guidance despite earnings and revenue misses, and sent the stock up about 5% Friday.