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Point of Focus
- DraftKings’ annualized prediction-market volume surged 378% to $11 billion.
- Coinbase’s prediction-market revenue grew 106% quarter-over-quarter.
- Betting platforms increasingly view prediction markets as a new revenue channel.
Prediction markets emerged as a major growth theme during the latest quarterly earnings season, with DraftKings, Coinbase and Robinhood reporting sharp increases in trading activity and revenue.
The results show how event contracts are moving beyond specialist platforms and becoming a strategic priority for large betting, cryptocurrency and brokerage companies.
However, rapid expansion is also increasing competition and regulatory scrutiny across the industry.
DraftKings prediction volume reaches $11B
DraftKings reported that annualized trading volume on its prediction market platform climbed from $2.3 billion in April to $11 billion in July, an increase of roughly 378%.
More than 600,000 customers have used the service since its December 2025 launch. CEO Jason Robins said that number could reach millions during the upcoming NFL season.
DraftKings stock has fallen roughly 50% over the past year, while FanDuel parent Flutter Entertainment’s stock has fallen close to 69%.
Yet both companies insist the rise of prediction markets is having little impact on their traditional sportsbooks.
— Front Office Sports (@FOS) August 9, 2026
The company views prediction markets as complementary to its sportsbook rather than a replacement for it. DraftKings has observed only about 1% customer overlap between its sportsbook and the largest prediction market operator in states where sports betting is legal.
Robins also estimated that professional traders and betting syndicates generate between 80% and 90% of prediction market volume. DraftKings believes controlling its brokerage, exchange and market-making operations will provide a competitive advantage.
The growth came despite a weaker quarter for the broader company. DraftKings posted $1.44 billion in revenue and adjusted EBITDA of $114.6 million, both below analyst expectations.
Coinbase prediction market revenue jumps 106%
Coinbase also highlighted event contracts as a rapidly expanding business.
Prediction market revenue rose 106% quarter over quarter, while its annualized second-quarter revenue run rate exceeded $100 million.
Nevertheless, the figure came in below KeyBanc analysts’ expectations.
Coinbase also reported a larger-than-anticipated quarterly loss, demonstrating that growth in prediction markets has not yet offset pressure elsewhere in the business.
Robinhood generates $156M from event contracts
Robinhood reported $156 million in second-quarter event contract revenue. The brokerage said more than 3.5 billion contracts had been traded through its prediction market operations.
Its CFTC-licensed Rothera exchange, launched in June through a joint venture with Susquehanna International Group, captured approximately 7% to 8% of activity across regulated US venues within its first two months.
Robinhood CEO: Prediction Markets Poised to Disrupt Insurance
Introduction: On January 10, 2026, Robinhood CEO Vlad Tenev stated in an interview on the Sourcery podcast that the 2024 election was "ground zero" for prediction markets, initiating a new supercycle. He analyzed that… pic.twitter.com/2hdCC4QaUS
— Wu Blockchain (@WuBlockchain) February 6, 2026
Furthermore, Flutter Entertainment is also expanding its presence through FanDuel Predicts, moving sports and novelty contracts from CME to Crypto.com ahead of the NFL season.
The industry’s growth comes as state regulators challenge whether sports-related event contracts constitute unauthorized gambling. With companies investing heavily in customer acquisition and infrastructure, the next phase will test whether prediction markets can sustain their growth while navigating an increasingly contested regulatory landscape.
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