Prediction markets take center stage in latest round of quarterly earnings reports. Aug 8, 2026 - 01:17 The latest quarterly earnings reports from FanDuel parent Flutter Entertainment, DraftKings and others shone a spotlight on the burgeoning prediction markets industry. A growing number of companies are introducing their own prediction market platforms or launching partnerships within the space, said Joel Shulman, the CEO of investment firm Entrepreneur Shares. As competition continues to grow, the latest earnings reports offer a glimpse at how much companies are willing to bet on its prediction platforms. DraftKings' platform grows 'faster than expected' DraftKings' CEO Jason Robins said the company's prediction market platform is growing at a booming pace, having launched in December 2025. "We had over 600,000 customers so far engaged with our predictions offering, and that's just going to explode this NFL season. I'm expecting millions, so we're excited about it," Robins told CNBC's "Squawk Box" on Friday. Annualized total volume for DraftKings' predictions platform grew to $11 billion from $2.3 billion between April and July, Robins said on the company's earnings call Friday morning. He added that other prediction markets have not disturbed DratftKings' business because it caters to a different audience. "We continue to see only about 1% customer overlap between our sportsbook and the largest prediction market operator in sportsbook states, which tells us these platforms are driving a fundamentally different and largely professional audience," he said. DraftKing's internal data estimates 80% to 90% of prediction market consumer volume comes from betting syndicates and institutional traders, Robins said during the call. Owning three key layers of prediction markets - brokerage, exchange and market maker - gives the company an edge against its competitors, Robins added. DraftKings' second quarter adjusted EBITDA of $114.6 million and revenue of $1.44 billion fell short of the FactSet consensus call for $156.1 million in EBITDA and $1.51 billion in revenue. FanDuel Predicts moves on from CME. Shares of Flutter closed down more than 11% on Wednesday after the online sports betting and iGaming operator announced that Dan Taylor, CEO of Flutter's international division, would replace Peter Jackson at the helm of the company. Second quarter earnings reported that day also fell short of Wall Street's estimates. In addition, Flutter said on Wednesday it would move its FanDuel Predicts sports and novelty contracts from CME to Crypto.com. CME will continue to provide financial market contracts, the company said. "This new exchange arrangement will ensure we can deliver new products at pace ahead of the NFL season start," Jackson said on the company's earnings call. The operator first launched FanDuel Predicts with CME in December 2025, just a few months after volume for platforms like Kalshi and Polymarket soared. Regulation is also top of mind for Flutter as Kalshi and Polymarket have been subject to scrutiny from state regulators arguing the companies are operating illegal gambling platforms. More than 40 state attorneys general have also pushed back on the Commodity Futures Trading Commission's assertion that it's the exclusive regulator of sports-related event contracts. Jackson said that FanDuel Predicts has a smoother pathway operating in states. "Our own prediction market offering FanDuel Predicts allows us to acquire customers ahead of sports betting regulation in new states," he said on the call. Flutter posted second quarter adjusted earnings of 49 cents per share on revenue of $4.33 billion, versus the FactSet consensus call for 54 cents per share and $4.23 billion. It expects to generate about $50 million in market-making revenue this year. Coinbase signals prediction market growth. Crypto exchange platform operator Coinbase said in late July that its prediction markets revenue grew 106% on a quarter over quarter basis, and that annualized revenue from this business in the second quarter surpassed $100 million. Some analysts were not impressed by those numbers. "Prediction markets run rate of $100M+ in 2Q was below our estimate," KeyBanc analysts wrote in a report after Coinbase posted quarterly results. Coinbase reported disappointing results for the second quarter, posting a wider-than-anticipated loss of $1.36 per share, versus the 17-cent loss per share analysts polled by LSEG had sought. Revenue also fell short of expectations, coming in at $1.2 billion versus the $1.3 billion forecast. Robinhood's Rothera rollout. Robinhood launched Rothera in June, an exchange that's licensed with the CFTC and managed through the brokerage's joint venture with Susquehanna International Group. In its second quarter report, Robinhood said that over 3.5 billion contracts had been traded to date. Event contracts revenue came in at $156 million in the second quarter, according to Robinhood. "In less than two months since launch, we took approximately 7-8% of total market share among CFTC-regulated venues and roughly 30% average market share in the specific contracts we listed," Rothera's founders Tom Chippas and Matt Trudeau wrote in a LinkedIn post on Aug. 4. The founders also highlighted the volume numbers as "evidence" that its "technology and operations can perform under sustained pressure at significant scale." Disclosure: CNBC and Kalshi have a commercial relationship that includes customer acquisition and a minority investment.

Michael Burry has taken a contrarian position on Flutter Entertainment, parent company of FanDuel, buying shares after selling his DraftKings stake. The stock has fallen 57% year to date following weak quarterly results that missed earnings expectations and prompted guidance cuts. Flutter's revenue grew just 3% year-over-year despite World Cup matches, whilst adjusted EBITDA dropped 45%. Hedge fund ownership declined sharply, with only 57 funds holding positions by the end of Q1, down from 79 the previous quarter. Burry's thesis centres on potential regulatory crackdowns on prediction markets like Kalshi, which could benefit Flutter. The company maintains approximately 41% market share in US sportsbook, and trades at attractive valuations relative to growth expectations. However, the stock faces headwinds from intensifying competition, regulatory pressures in the UK, and leadership transition risks following the CEO change.

Flutter's FanDuel grows US online casino revenue 14% in Q2. Online Casinos Business Regulation Updated by Joss Wood Commercial Editor Last Updated 6th Aug 2026, 05:26 PM Flutter Entertainment's US iGaming business generated $577 million in revenue during the second quarter of 2026, up 14% year-over-year, even as new state tax increases in New Jersey, Illinois and Louisiana ate into profitability, the company reported August 5. The London-listed parent of FanDuel said direct casino average monthly players (AMPs) climbed 26% in the quarter, the primary driver behind the segment's overall AMP growth of 14%. iGaming now accounts for 34% of Flutter's total US revenue of $1,683 million, underscoring how central online casino has become to the company's American business even as its sportsbook arm struggled. Sportsbook slumps while casino climbs. The iGaming growth stood in sharp contrast to Flutter's US sportsbook performance, which posted revenue of $1,039 million in the quarter, down 14.8% from $1,219 million a year earlier. For the first half of 2026, sportsbook revenue fell 7.2% to $2,183 million from $2,353 million in the same period of 2025, while iGaming revenue rose 16.5% to $1,141 million from $979 million. FanDuel said it retained its position as the number one operator in US iGaming, with a 27% share of gross gaming revenue. Combined with PokerStars US, which Flutter reports within its International segment, the group's total US online casino share reaches 28%. Chief Financial Officer Rob Coldrake said Flutter has reiterated its guidance for full-year iGaming revenue growth in the high teens percentage range, adding that exclusive content, including new installments of past hits such as Huff N' Puff and Willy Wonka-branded slot titles, is scheduled to launch monthly through year-end. New Jersey, Illinois and Louisiana tax hikes erode margins. Flutter said cost of sales rose 510 basis points as a percentage of revenue during the quarter, a jump the company attributed to state gaming tax increases and heavier promotional spending, or "generosity" investment, aimed at retaining players. Those pressures were only partially offset by market access savings and renegotiated commercial agreements. The tax pressure is not new. On Flutter's Q1 2026 earnings call, Coldrake had already flagged the issue when explaining a roughly 200 basis point year-over-year decline in US gross margin. "Tax increases year on year from a state perspective - New Jersey, Illinois, and Louisiana - which total approximately 220 basis points. That is the main moving part," Coldrake said. On the Q2 call, Truist Securities analyst Barry Jonas pressed Flutter on North Carolina's decision to raise its online sports betting tax to 22% while adding a new 6% levy on prediction markets. CEO Jeremy Jackson said the shifting state tax landscape is now a factor in how Flutter balances its sportsbook and prediction-market products. "From a state-by-state tax perspective, there's also a lot going on at the moment. I think we've been pleased with our focus on trying to get new states to open. I think that's an important component that we need to recognize as well," Jackson said, adding that broader regulatory questions around prediction markets are likely to be resolved by the US Supreme Court. Direct-to-Casino content push behind AMP growth. Executives credited exclusive content and celebrity marketing tie-ins for much of the quarter's 26% growth in direct casino players. Jackson pointed to the June launch of "Love Island: Unlocked," a branded title tied to new FanDuel brand ambassador Ariana Madix, along with an exclusive Monopoly Live launch, as key drivers of engagement. "The main focus and push for us from an iGaming perspective is around acquiring those direct-to-casino customers," Jackson said, adding that a smaller sportsbook business earlier in the year had limited cross-sell into casino but that FanDuel now has "a bigger base" to convert. "We can see a very clear distinction there. The direct casino, so the slots, growing very strongly," Jackson said, contrasting slots momentum with softer table games performance tied to that smaller sportsbook base. Virginia seen as closest new iGaming state. Asked about the outlook for new state legalization heading into 2027, Jackson said Flutter still expects to add at least one new iGaming state by the end of 2027. "I think Virginia has probably got furthest of any of our target states. I think there's some interesting opportunities around D.C. But then there's a bunch of them where we're hoping to build traction, whether it's Ohio or other places," Jackson said. "We think it's going to happen, and there's some real pent-up demand for us to be able to deliver the income and product experience to customers in those states." West Virginia online casinos have been in operation since 2020. Virginia has watched gambling state tax revenues with envy and hopes to follow Maine in being the next US online casino state. Guidance trimmed as Flutter prioritizes growth over margin. Flutter trimmed its full-year 2026 US revenue guidance to $7.4 billion at the midpoint, down $395 million from its previous outlook but still 6% growth year-over-year, and cut full-year US adjusted EBITDA guidance by $210 million to a $760 million midpoint, an 18% year-over-year decline, as it increases investment in its sportsbook and gaming proposition. The company said it is "moving from a focus on margin growth, to prioritizing AMP growth and customer value" in iGaming, a shift it argued would support long-term market share gains despite near-term profitability pressure. Meet the author. 20 Years Experience Commercial Editor Joss Wood has over a decade of experience reviewing and comparing the top online casinos in the world to ensure players find their favorite place to play. Joss is also a specialist when it comes to breaking down what casino bonuses add value and where to find the promotions you don't want to miss.