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- DraftKings plans to increase investment in its DKeX prediction market during the second half of 2026, even as new data from Needham reveals that rival Kalshi dominated opening-week NFL sports volume with a massive 76% share, compared to just 3% for DKeX.
- The competitive push into event contracts comes amid broader industry headwinds, including a sharp drop in DraftKings stock and fresh federal scrutiny, as the House Oversight Committee launches an investigation into whether platforms like Crypto.com and Aristotle Exchange are adequately preventing insider trading.
DraftKings plans to increase investment in its DKeX prediction market in the second half of 2026, even as early volume data cited in a new report shows rival Kalshi well ahead in sports-related trading.
The update matters because prediction markets are emerging as a new competitive lane alongside traditional sports betting. Bernstein estimated DKeX consumer trading volume could reach $1 billion by December, though that figure refers to trading volume, not revenue.
Kalshi leads while DKeX ranks third overall
According to the report, Kalshi accounted for 76% of reported NFL opening-week sports volume in Needham data, while DKeX made up 3% of that sports trading. In the third week of September, DKeX ranked third overall in prediction-market trading volume, behind Kalshi and Polymarket.
That leaves DraftKings with a visible gap to close as it expands further into the category. The source says the company plans to put more money into prediction markets during the second half of 2026.
The report also noted pressure on DraftKings shares. The stock fell more than 19% in September and 11% over the week covered in the report, before rising 0.3% overnight ahead of Wednesday, Sept. 30.
DraftKings CFO Alan Ellingson said the company’s core business remained on track to generate approximately $1 billion in adjusted EBITDA this year.
Regulatory scrutiny adds another variable
The prediction-market race is playing out as U.S. policymakers pay closer attention to the sector. House Oversight Committee Chair James Comer sent letters to the CEOs of Hyperliquid Labs, Crypto.com, and Aristotle Exchange as part of an investigation into whether those platforms are meeting legal obligations and doing enough to detect and prevent insider trading.
While those letters were not directed at DraftKings, they underscore the broader compliance scrutiny around event-based trading platforms in the United States.
The source also pointed to regulatory disruption outside the U.S. as part of the wider gambling-industry backdrop. In Brazil, a ban on online sports betting took effect on Sept. 25. Flutter Entertainment halted its betting and iGaming operations there and said a prolonged shutdown could cost about $70 million in 2026 revenue.
For DraftKings, the next key question is whether added investment can help DKeX narrow the early volume gap with Kalshi and establish a larger foothold in the U.S. prediction-market segment.
Source: As reported by news.google.com.
