Jason Robins

DraftKings stock is down ~40% over the last six months. Investors sold off after the CFTC withdrew a proposed rule that would have banned sports prediction markets, fearing increased competition. The CEO argues the market has this backward. The CFTC moving toward "clear guidelines" rather than a ban is actually positive for DraftKings. As a fully legal, regulated entity, DraftKings cannot operate in "opaque" gray markets. Clear regulations allow them to deploy their resources, launch their own prediction products (which they have already started), and "win in this space." Robins explicitly states they have launched a predictions app and intend to compete directly. The public markets may continue to view prediction markets as a threat rather than an opportunity for some time; regulatory guidelines may take time to finalize.