DraftKings’ Matt Kalish Takes a Sharp Shot at Prediction Platforms
DraftKings co-founder Matt Kalish reacted sharply to discussions that prediction platforms are increasingly competing with traditional regulated sportsbooks.
In a thread on X, he called the segment “niche as f*ck” and made it clear he does not see these platforms as a full-fledged threat to sportsbooks in their current form. According to Kalish, no prediction platform today comes even close to the user experience offered by regulated sportsbooks.
He put it bluntly: in his view, these products still need another two to three years of development, and that is before regulators begin taking a serious look at their model.
Kalish also added that prediction markets remain an extremely niche product and do not look appealing to the mass sports betting audience. In other words, for players used to a standard sportsbook interface, betting lines, promos, parlays, and a familiar betting flow, these platforms still feel too foreign and complicated.
He also singled out Kalshi, one of the most visible players in the prediction markets space. According to the DraftKings co-founder, the company is spending hundreds of millions of dollars on marketing promises it cannot deliver. Ordinary users drawn in by that hype, he suggested, ultimately end up at a disadvantage against professional market makers.
This is not a new argument: similar criticisms of prediction markets have also come from other market participants. The core complaint is simple — the mass user is being sold the idea of an accessible, easy-to-understand product, but once inside, they are not dealing with familiar bets. They are dealing with a market where professionals are the ones most at home.
At the same time, DraftKings itself has no plans to sit on the sidelines. On the company’s Q1 2026 earnings call, CEO Jason Robins said DraftKings plans to invest $200–300 million into prediction markets over the course of the year.
That is where the story gets a little more interesting. On one hand, Kalish is publicly calling prediction platforms niche and criticizing Kalshi. On the other, DraftKings is preparing major investments in the same segment. Apparently, the market is too “niche” to simply ignore.
The nervous reaction is understandable, too. Prediction platforms have become one of the factors putting pressure on DraftKings shares and weighing on the company’s market capitalization. For traditional sportsbooks, this is an uncomfortable kind of competitor: it may not yet have become a mainstream betting product, but it is already changing investor expectations and forcing the market to reassess the outlook for familiar operators.
Olivia Grant is an iGaming news reporter at CasinosInCanada who covers casino industry updates, regulations, and market developments.
Well, if DraftKings is putting $200–300 million into a “niche” area, then that niche has turned out to be a pretty expensive one.