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The prediction markets industry is booming. DraftKings, FanDuel, Coinbase and Robinhood all reported strong growth. Their latest quarterly earnings put the spotlight on this emerging sector.
More companies are launching prediction platforms. They are also forming partnerships in the space. This competition is clear in the earnings reports.
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Read More"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," said DraftKings CEO Jason Robins on CNBC's "Squawk Box." The platform launched in December 2025.
DraftKings' prediction volume grew fast. Annualized total volume hit $11 billion from April to July. That is up from $2.3 billion.
DraftKings Volume and Earnings
Robins said other prediction markets do not hurt DraftKings. His platform serves a different audience. Only 1% of customers overlap with the largest operator in sportsbook states.
Most volume comes from professionals. DraftKings estimates 80% to 90% comes from betting syndicates and institutional traders. This data comes from internal analysis.
DraftKings controls three key layers. The company owns brokerage, exchange and market maker functions. This gives it an edge over competitors.
Earnings missed Wall Street expectations. DraftKings reported $114.6 million EBITDA and $1.44 billion revenue. The FactSet consensus called for $156.1 million and $1.51 billion.
FanDuel and Coinbase Results
Flutter Entertainment moved FanDuel Predicts from CME to Crypto.com. The company announced this on Wednesday. CME will still offer financial market contracts.
"This new exchange arrangement will ensure we can deliver new products at pace ahead of the NFL season start," said Flutter CEO Peter Jackson on the earnings call. The operator launched FanDuel Predicts with CME in December 2025. Volume for Kalshi and Polymarket soared just months earlier.
Flutter's earnings also fell short. The company posted 49 cents per share on $4.33 billion revenue. The FactSet consensus was 54 cents and $4.23 billion.
Coinbase prediction revenue grew 106% quarter over quarter. Annualized revenue surpassed $100 million in the second quarter. KeyBanc analysts said this was below their estimate.
Coinbase reported a loss of $1.36 per share. Revenue came in at $1.2 billion. Analysts expected a 17-cent loss and $1.3 billion revenue.
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