DraftKings has reported a significant revenue of $1.5 billion for the 2nd quarter of 2025, an increase of 37% from the same time last year. The company is also closely monitoring prediction markets, according to its CEO, Jason Robbins.

DraftKings has once again made headlines with its impressive second quarter earnings for 2025, reporting $1.5 billion in revenue - a 37% increase compared to Q2 2024. During an upbeat earnings call, Chief Executive Officer Jason Robins announced that the company also saw a net income amounting to $158 million and an adjusted EBITDA of $301 million, both record-setting figures for the sportsbook and fantasy sports giant.

Despite the positive financial performance, Robins signaled that the company is exercising restraint when it comes to entering the promising but controversial prediction markets. While noting potential growth opportunities, DraftKings remains in what Robins described as "monitor mode" for now.

Prediction markets under watchful eye

DraftKings' interest in prediction markets comes at a time when companies like Robinhood and Kalshi are already testing the waters with sports event contracts that resemble sports betting. These markets offer a potential workaround for DraftKings to operate in states where traditional sports betting remains illegal or heavily restricted.

However, Robins explained that DraftKings is hesitant to be the first major mover into this emerging segment. The company must navigate a complex regulatory environment, as well as honor existing partnerships with state governments and tribal entities. He cited ongoing lawsuits in New Jersey, Maryland, and Nevada, along with strong resistance from tribal organizations - especially in California - as reasons for caution.

"You can assume that at this stage we're more in monitor mode than active discussions," Robins noted, adding that prediction markets are not currently included in the company's financial projections for the rest of fiscal year 2025.

Positive outlook for Missouri launch

DraftKings' Q2 success was largely attributed to strong customer engagement, improved sportsbook margins, and favorable sports outcomes. Looking ahead, the company is banking on the launch of sports betting in Missouri - set for December 1, 2025 - to further boost its bottom line.

The company has submitted an application for one of Missouri's untethered sports wagering licenses and appears confident it will secure a position in the state. Robins highlighted the timing of the launch as ideal, coinciding with peak seasons for the NFL, NHL, and NBA.

Missouri is expected to be the only state to legalize sports betting in 2025, making the opportunity especially significant for DraftKings. Robins called it "a meaningful market entry" that could help offset challenges in other regions.

One such challenge lies in Illinois, where lawmakers implemented a controversial per-bet tax in July. While the financial impact is still uncertain, Robins confirmed that DraftKings will introduce a $0.50 per-bet charge to users this fall to compensate for the new regulation.

"It's a unique situation. We've never been subject to a per-bet fee before," Robins stated, while expressing hope that Illinois legislators will consider revising the policy during the state's session in October. As of now, there are no indications that a repeal is being seriously considered.

Other key earnings call takeaways

During the call, Robins also addressed several additional topics:

  • A New Jersey bill that proposes banning microbetting was dismissed by Robins as unlikely to pass. He noted that microbetting comprises only a single-digit percentage of DraftKings' live handle in the state.
  • The company sees great promise in artificial intelligence, with plans to roll out AI tools to monitor and adjust trading in the next six to twelve months.
  • DraftKings reported $11.5 billion in total sportsbook handle for Q2 2025, up 6.3% year-over-year.
  • Sportsbook revenue accounted for $997.8 million of the total quarterly earnings.
  • DraftKings is maintaining its 2025 fiscal year revenue guidance of $6.2 billion to $6.4 billion.

As DraftKings celebrates a record-setting quarter, the company appears poised to continue its aggressive yet calculated growth - keeping one eye on opportunity and the other on regulatory and stakeholder dynamics.