DraftKings will not offer prediction markets in sports-betting states, CEO says

DraftKings will not offer prediction markets in states where it holds sports-betting licences, chief executive Jason Robins said at the Next Predict Summit in New York. Robins said the approach protects the company's gaming licences and leaves it positioned for either outcome in litigation over sports event contracts.

On 19 December, DraftKings Predictions went live alongside DKEx, the company's own exchange. The event contracts it lists fall under the CFTC, the firm said. Robins told the summit that DraftKings is not fully committed to the sector, yet walking away is not an option given how much of its customer base and revenue comes from that business.

Robins said companies that have staked their business on one outcome of the legality of sports event contracts face greater exposure than DraftKings, which he said is positioned whichever way the courts rule. He said DraftKings has worked to maintain a respectful relationship with regulators and has told them it will not operate in markets where it offers sports betting.

Asked about a national advertisement stating that DraftKings products are available in 50 states, which Brewer said she saw while in Las Vegas for the Global Gambling Expo (G2E), Robins said he was surprised it aired in Nevada. He said DraftKings does not offer paid sports predictions in Nevada but does offer free-to-play sports contests there, and that the company worked with Nevada regulators on disclaimers in its marketing.

The Seminole Tribe of Florida brought a suit against DraftKings and Robins in October in Broward County Circuit Court. The tribe runs mobile sports betting through a gaming compact with the state and argues that the company's prediction markets and Pick6 products amount to unlicensed sportsbooks, which it says breaks state law and its exclusive gaming rights. Robins told the summit he had no explanation for why DraftKings was singled out, saying "you’ll have to ask them," and added that he was somewhat taken aback that no other operators in the state were named.

Robins also addressed a New York Times report that DraftKings used artificial intelligence and machine-learning models to direct promotional incentives at customers most likely to lose money. Asked whether he could have a business if some customers do not lose, Robins said the point applied to any business that needs customers to spend money. He said the company uses AI to produce relevant content and not to encourage customers to do things they should not.

Robins disputed the account in a ProPublica article in which a reporter wagered in the manner of a problem gambler and was made a VIP customer. Robins said he reviewed the customer's history and communications and was proud of how the company handled it, citing hundreds of responsible gambling notices and repeated offers of a cool-off period or limits from the VIP host. ProPublica author Jake Pearson responded on X that his VIP representative never suggested he cool off or asked if he was okay, and that limits were discussed once when he asked whether blackjack could be removed from the app. A DraftKings spokesman told Pearson: "We’ve said what we said on it."