In jurisdictions where both sportsbooks and prediction markets are permitted, Jason Robins, CEO of DraftKings, stated on Tuesday that “I just don’t see a world” in which consumers would prefer prediction markets to sportsbooks.
Even though Wall Street seemed to have a different perspective, Robins remained optimistic about his company’s capacity to compete with firms like Kalshi and Polymarket while giving a keynote address at the Global Gaming Expo (G2E) titled “Inside the C-Suite: Gaming’s Future in Focus on Stage.”
At the Las Vegas conference, Robins stated that while prediction markets will be useful in areas like California and Texas where sports betting is illegal, he thinks customers would still choose DraftKings over Kalshi in the rest of the nation.
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“It’s like apples and oranges in a state where sports betting is legal,” Robins stated. “The sportsbook’s offering and capabilities are far superior to those of a prediction market.
“I just don’t imagine a scenario in which a state with both sports betting and prediction markets doesn’t make it obvious to the consumer that the sportsbook offers a far better experience.
“I don’t really see it, and I don’t mean to come across as condescending. I don’t.
Various in states where gambling is illegal
However, Robins pointed out that over 50% of Americans still lack access to licensed online sportsbooks. According to him, those individuals will have a much easier time succeeding in prediction markets.
“I think there is a place there, but there are still a lot of places in the U.S. where people cannot access our product,” he stated.
However, he added that since it is evident that citizens of such states are placing bets on sports in violation of state law, the growth of prediction markets may serve as a spur for the legalization of sports betting in those jurisdictions.
According to Robins, prediction markets’ ability to compete with sportsbooks will be hampered by the difficulty of guaranteeing sufficient liquidity for markets other than straight bets on the biggest games. Additionally, he raised the issue of bettors’ limitations, pointing out that this isn’t the case for exchanges.
“The products will get better, but the way they’re made—with market makers and liquidity pools—isn’t the same as going into a sportsbook and saying, ‘I want to bet on this, this, and this,’ or ‘I want to parlay these bets.'”
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