DraftKings reportedly laid off staff last week before its third-quarter earnings report, while Polymarket appears to have confirmed workforce cuts. If confirmed, the DraftKings cuts would be its third round in 2026 and fourth since 2023; Polymarket has not announced an IPO plan.
The reported cuts mark staffing changes at two companies active in betting and prediction markets.
Quarter ended 30 September 2026
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The CFTC issued guidance saying state-based geographic restrictions generally conflict with impartial-access requirements for designated contract markets in the United States. It gave exchanges 30 days to remove conflicting blocks or explain to the Division of Market Oversight, with supporting evidence, why compliance is not feasible. The same framework applies to intermediaries and other entities providing market access.
The CFTC said state-based geographic restrictions on prediction markets are generally inconsistent with its impartial access rules, and gave operators and exchanges 30 days to lift them or explain why they cannot. The agency issued the guidance on Thursday as a formal interpretation of its impartial access requirements for designated contract markets. It said location alone should not be used to deny access to eligible participants within the United States.
DraftKings lowered its 2026 adjusted EBITDA forecast to $175 million-$275 million, from $700 million-$900 million, citing planned investment in its Predictions business, additional iGaming spending and customer-friendly sports results. The company also cut its revenue outlook to $6.35 billion-$6.55 billion and reported a third-quarter net loss of $468.7 million, compared with $256.8 million a year earlier.
Prediction markets recorded average daily trading volume of $4.13bn in October, up 55% from September, according to figures attributed to Jefferies analyst Daniel Fannon. Open interest rose 45% to $3.27bn, while sports contracts accounted for 78% of total volume. Polymarket's average daily volume reached $655m, up 50% month on month.
Kalshi and the Philadelphia 76ers agreed a multiyear partnership, making the team the first NBA franchise to name a prediction market partner. The deal includes arena advertising and placements across the team’s app, ticketing platform and other digital channels; financial terms were not disclosed.
DraftKings launched its DraftKings Predictions app in December 2025 and introduced its DKeX contracts market on 26 June 2026, according to the report. The company developed DKeX using technology and authorisations obtained through its acquisition of Railbird Technologies; the report also says a US professional basketball league expanded its agreement with DraftKings on 26 October to cover prediction markets.