Prediction markets are officially taking over across the trading and sports betting world. What started as a relatively niche corner of the financial sector has quickly turned into a major growth opportunity for some of the biggest names in sports betting, crypto and online trading.
The latest quarterly earnings reports from DraftKings, Flutter Entertainment, Coinbase and Robinhood made that pretty obvious.
DraftKings Predictions Growth
DraftKings experienced notable prediction markets growth this past quarter.
CEO Jason Robins said DraftKings’ prediction platform has already attracted more than 600,000 customers since launching in December 2025. He expects that number to potentially reach the millions once the NFL season gets rolling.
The volume growth is even crazier. DraftKings said the annualized total volume on its prediction platform jumped from $2.3 billion in April to $11 billion by July.
That is a massive increase in just a few months and DraftKings doesn’t necessarily believe prediction markets are stealing customers from its sportsbook.
Robins said there is only about 1% customer overlap between DraftKings’ sportsbook and the largest prediction market operator in states where traditional sports betting is legal. The company doesn’t offer sports prediction markets in legal sportsbook states, so this is most likely the reason.
The company estimates that 80% to 90% of prediction market volume comes from betting syndicates and institutional traders. That is a pretty big difference from the typical sportsbook customer.
DraftKings also believes it has an advantage because it controls three important parts of the prediction market operation like brokerage, exchange and market making.
FanDuel also Embracing Prediction Markets
Flutter Entertainment, FanDuel’s parent company, is making a major change to its prediction market strategy by moving FanDuel Predicts’ sports and novelty contracts from CME to Crypto.com.
Flutter wants the new exchange setup to help it roll out products faster before the NFL season begins. FanDuel Predicts originally launched with CME in December 2025 as prediction markets were beginning to explode in popularity, but the technology wasn’t fast enough for growth.
Flutter also sees prediction markets as a potential way to get customers in states before traditional sports betting becomes fully available.
That could become a major advantage as regulators continue fighting over whether companies like Kalshi and Polymarket are operating financial markets or gambling platforms.
Flutter expects to generate approximately $50 million in market making revenue this year.
Coinbase and Robinhood Jumping on Prediction Markets.
Coinbase is seeing the prediction market boom from the crypto side. The company said prediction market revenue increased 106% from the previous quarter, with its annualized revenue run rate surpassing $100 million in Q2.
Even that wasn't enough to impress everyone. KeyBanc analysts said the $100 million-plus figure came in below their expectations, which is a pretty wild development considering how new the business is in the market.
Robinhood is also throwing its hat into the ring. The company launched Rothera in June, a CFTC licensed exchange operated through its partnership with Susquehanna International Group.
Robinhood said more than 3.5 billion contracts have been traded to date. Rothera’s founders also said the platform captured roughly 7% to 8% of the market among CFTC regulated venues in less than two months.
Prediction markets are no longer something companies can afford to watch from the sidelines based on all these companies.
The Trade Handle Prediction Markets Take
DraftKings is seeing billions in projected volume. FanDuel is changing its infrastructure to move faster. Coinbase is already generating more than $100 million in annualized revenue. Robinhood is taking meaningful market share almost immediately after launch.
The best part is the NFL season just started with the Hall of Fame Game on Thursday, and we don’t have regular season games for over a month.
Sports have already proven to be one of the biggest opportunities for prediction markets, and the combination of football season, institutional money and millions of retail traders could send the numbers even higher.