"Draftkings and Flutter Entertainment have both moved into market-making on prediction-market platforms, escalating from consumer-facing products into the financial infrastructure of an industry that built its identity on peer-to-peer trading. The Q1 2026 earnings disclosures establish that the sportsbook industry's bet on prediction markets has moved well beyond app launches."
"Draftkings reported Q1 2026 revenue of $1.6 billion on May 7, up 17 percent year-over-year, with an adjusted EBITDA of $167.85 million. CEO Jason Robins identified market-making capabilities and a proprietary exchange as core pillars of the company's prediction-markets strategy, stating that Draftkings intends to establish a leadership position in Sports Predictions before year-end."
"On the earnings call the following day, Robins told analysts he saw no reason Draftkings should not become one of the top two or three market makers in the world, and characterized the early work in this field as one of the company's fastest paths to profitability. The market-making operates on Railbird, the prediction-markets exchange Draftkings acquired in October 2025."
"Flutter Entertainment, Fanduel's parent, reported Q1 2026 revenue of $4.304 billion on May 6. US Adjusted EBITDA fell 26 percent year-over-year to $119 million, reflecting Flutter's $300 million full-year 2026 investment in Fanduel Predicts and $35 million in Arkansas state-launch costs. This makes Flutter's approach structurally different from Draftkings'."
DraftKings and Flutter Entertainment have moved from consumer-facing prediction-market products into market-making and financial infrastructure. DraftKings reported Q1 2026 revenue of $1.6 billion, up 17% year over year, with adjusted EBITDA of $167.85 million. CEO Jason Robins described market-making capabilities and a proprietary exchange as core pillars, aiming for a top two or three global market-maker position via the Railbird exchange acquired in October 2025. Robins said the work is among the fastest paths to profitability. Flutter reported Q1 2026 revenue of $4.304 billion, with US adjusted EBITDA down 26% year over year, reflecting investment in Fanduel Predicts and state launch costs, indicating a structurally different approach.
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