Robins Says DKeX Is Now the Clear No. 3 US Prediction Exchange

DraftKings CEO Jason Robins announced on Thursday that the company's in-house exchange, DKeX, has emerged as the third-largest prediction market operator in the US, just a few months after its launch. Speaking at the NEXTPredict Summit in New York, Robins stated that DKeX is now the clear No. 3, despite being only available in 18 states compared to its rivals' broader reach.

The exchange went live in late June of this year, handling $1.04 billion in trades by October 18, representing a 3.57% share of the market, up from 2.33% in the previous week. DKeX's smaller footprint, limited to 18 states, allowed DraftKings to achieve this position despite operating in a more cautious regulatory environment. Robins emphasized that the exchange avoided sports contracts in states where they coexist with traditional sports wagers, citing the regulatory risks involved.

He also addressed the uncertainty surrounding the legal status of sports event contracts, which is currently under review, particularly as the case moves toward the US Supreme Court. Investors have reacted negatively to the stock, with the company's stock down more than 40% this year, attributing the decline to regulatory uncertainty.

Robins also touched on responsible gambling practices, stating that the company does not target problem gamblers and that customers at risk are referred to a dedicated team.