While other operators say they plan to wait and see, DraftKings is keeping active tabs on the prediction market industry as the CFTC prepares for the potential confirmation of a new chair in Brian Quintenz, a member of Kalshi’s board.
The company could be the first major sports betting operator to offer event contracts.
“I do think that being an early mover in a space like this can be important,” said DraftKings CEO Jason Robins in the company’s Q2 earnings call. “I also think that being a literal first mover may not be as important, and there are downsides to that as well.”
DraftKings is continuing to gather information about a potential foray into event contracts as regulators and lawmakers discuss their legality and regulation by the CFTC.
“We’re evaluating, obviously we have a lot of stakeholders, state regulators, relationships with tribes, others that we want to make sure we consider as we think about what our different options are,” continued Robins.
DraftKings will be closely following prediction markets and Quintenz’s confirmation.
“We need to see what will come from watching how things unfold with others that are currently offering prediction markets, and I think we’ll kind of have to see how that goes and evaluate it,” said Robins. “It’s all happening in very fast real time.”
Sportsbook-favorable results up Q2 financials
DraftKings reported favorable financial results in its latest earnings report, adjusting its year-long guidance in a positive direction.
The company generated $1.5 billion in revenue in Q2 2025, a 37% increase year-over-year. DraftKings attributed the revenue growth to a higher sportsbook hold and the acquisition of new customers. DraftKings reported an adjusted EBITDA of $301 million in Q2 2025. By comparison, its adjusted EBITDA in Q2 2024 closed at $128 million. DraftKings posted a total sportsbook handle of $11.4 million in Q2 2025, up from $10.7 million for the same period last year. Sportsbook revenue in Q2 was $998 million, up 45% year-over-year.
Net income for the operator in Q2 2025 was $157 million, up from $63 million in Q2 2024. The revenue, net income, and adjusted EBITDA figures for DraftKings were new records.
DraftKings projects full-year revenue to range between $6.2 billion and $6.4 billion. It estimates its adjusted EBITDA for 2025 to be between $800 million and $900 million.
DraftKings considers tax changes in projections
The financial estimates for DraftKings include the anticipated impact of tax rate increases on online sports wagering in New Jersey, Louisiana, and Illinois. Starting Sept. 1, DraftKings will implement a 50-cent transaction fee on all online wagers placed through its sportsbook. The company is levying a transaction fee after Illinois Gov. J.B. Pritzker signed a budget plan charging online sports betting operators at least 25 cents per wager.
“The way Illinois implemented the tax, there really wasn’t a good solution,” added Robins.
The per-wager tax increases to 50 cents per wager after the first 20 million bets in a year. FanDuel and Fanatics also plan to implement player transaction fees in Illinois.
According to the Illinois Gaming Board, the per-wager tax also applies to bonus bets and credits. The tax could impact how DraftKings prices its betting markets moving forward. The operator is seeking clarity on how revenue from its transaction fee will be taxed.
“Tweaking pricing is something you need to consider,” said Robins. “Some of it will depend on tax treatment. Our position that is this was a pass through and it shouldn’t be taxed.”
DraftKings is facing a tax change in Louisiana that raises the rate from 15% to 21.5%. The law, which went into effect on Aug. 1, benefits student-athletes at Division 1 programs.
In New Jersey, online casino and sports betting operators are dealing with a 19.75% tax rate on gross gaming revenue. New Jersey’s previous tax rules on gaming levied a 13% tax rate on sports betting while online casinos in the state were taxed at a 15% rate.
Gov. Phil Murphy originally proposed a flat 25% rate for both iGaming and sports betting.
New opportunity for DraftKings
The company is preparing to enter Missouri’s gaming market later this year once it opens. DraftKings was one of the first operators to apply for a license with the state’s regulator.
Licenses will be awarded to applicants on Aug. 15 and if selected, DraftKings is expected to pay $500,000 for a five-year license will be taxed at a 10% rate on gaming revenue.
DraftKings’ launch in Missouri is expected to have a $35 million to $45 million impact on adjusted EBITDA in 2025, but the operator expects to get off to a strong start in the state.
“If you look at Missouri, we’re going to end up with a little bit maybe more acceleration than that one [North Carolina],” continued Robins. “The timing of the year is different too. This is going to be happening right in the middle of the NFL season. So that’ll probably change the pace.”
Missouri will begin offering regulated sports wagering on Dec. 1. In addition to DraftKings, FanDuel, Underdog and Circa Sports also applied for Missouri gaming licenses.
