DraftKings (DKNG) investor relations material

Exchange growth and regulatory positioning

• DraftKings Exchange reached the overall top three within months of launch and continued gaining share, despite operating in less than half the country; Jason Robins said its sports offering was strongest in the market.

• Repurposable sportsbook technology and years of customer research accelerated prediction-market product development without starting from scratch.

• Sports predictions were excluded from states with sportsbook licenses to protect those licenses; Robins described the strategy as resilient to either outcome of potential Supreme Court review.

• Election and financial contracts showed encouraging growth; Robins said non-sports markets could remain available even if sports contracts face restrictions, and the product could be promoted more heavily in months.

• Robins expects states may eventually tax sports predictions similarly to sports betting; he said sportsbooks offer a better overall experience for many customers, while prediction markets add distinct non-sports choices.

Product, personalization and safeguards

• A shared app and wallet aim to remove customer friction from navigating separate apps, accounts and deposits; newer technology supports a fast, personalized experience across products.

• AI and machine learning personalize relevant content; Robins said they are not used to target at-risk customers, who may instead be referred to a specialized responsible-engagement team.

• Responsible trading tools and referral procedures used in sports betting also apply to predictions, even where not required; Robins described safeguards as part of a collaborative relationship with the NFL.

• Robins said the business does not plan product features specifically for algorithmic or institutional traders, citing concern that they could worsen the retail experience.

Retention and sustainable economics

• Kalshi’s monthly trading exceeded $60B last month and was surpassing that pace with more than a week remaining; Polymarket’s 2024 cohort had ~50% of new wallets active after two months and 17% after three.

• Panelists argued prediction operators need additional verticals to retain users, grow revenue per user and hedge regulatory exposure; Betr cited lower prediction-market margins and the value of cross-product customer generosity.

• Betr had soft-launched Polymarket-powered predictions in a handful of states and planned Betr Rips within weeks; its super app was set to have six products, five launched in the prior 15 months.

• Panelists identified customer retention and unit economics, including lifetime value versus acquisition cost, as key to survival; Joey Levy cited triple-digit YoY revenue growth at significant scale.

• The retention outlook for the next 18 months centered on efficient promotion and stronger unit economics; panelists forecast product expansion and more consumer super apps.