DraftKings intends to dominate both the sportsbook and prediction markets.

Ahead of the sports betting giant’s Friday third-quarter earnings call, it unveiled a new multiyear partnership with ESPN to become the company’s exclusive sportsbook and odds provider—an announcement that came shortly after ESPN and Penn Entertainment formally ditched their high-profile deal.

Meanwhile, the company is ramping up plans to enter the world of prediction markets, after it last month agreed to pay $250 million for Railbird Exchange, a federally licensed prediction-markets platform.

Although it didn’t commit to offering controversial sports event contracts when that acquisition was announced, DraftKings now appears prepared to go all in. CEO Jason Robins said during Friday’s earnings call that “we see predictions as a significant incremental opportunity,” and that the company intends to “enter many states with sport event contracts,” with a focus on those where sports betting is not yet legal. Although no specific states were mentioned on the call, major states that do not have legalized sports betting include California and Texas.

DraftKings says its prediction-markets platform will be launched in the “coming months.” When pressed, Robins said it’s possible it could launch during the fourth quarter “if ready.”

“We will pursue this opportunity, we will compete, and we will win,” he said.

Robins said DraftKings held discussions with regulators in multiple states before diving into prediction markets. “We really value and treat with the utmost importance our relationships with regulators and policy makers,” he said.

Challenges include customer acquisition and retention, Robins said. Plus, the “products themselves are super nascent.”

“It is still so early and [there are] a lot of unknowns,” he said. “We have zero data. We haven’t launched our product.”

Not only is DraftKings getting into prediction markets—a space that, to date, has largely been dominated by Kalshi and Polymarket—but so is FanDuel, which in August reached a deal with derivatives exchange CME Group to enter the arena. FanDuel, like DraftKings at first, has not committed to offering sports event contracts. FanDuel’s third-quarter earnings call is next week. A company spokesperson tells Front Office Sports there is “nothing new to share” on the prediction-markets front.

“We welcome the competition,” Kalshi spokesperson Sara Slane tells FOS. A representative for Polymarket declined to comment.

Prediction markets dominated the earnings call conversation. There were far more questions about the upcoming platform launch than anything else, including the new ESPN deal. As far as financials, DraftKings reported revenue of $1.14 billion in the third quarter, up 4% from the same period last year. The company says that increase can be attributed to “continued healthy customer engagement, efficient acquisition of new customers, and higher structural Sportsbook hold percentage, partially offset by customer-friendly sport outcomes.” 

The reported revenue was below analyst estimates of about $1.21 billion. The company also lowered its fiscal year 2025 revenue guidance from $6.3 billion to between $5.9 billion and $6.1 billion. Meanwhile, the company’s stock has struggled this year—as of Friday morning it was down more than 27% year to date—amid factors including competition from prediction markets and tax increases on sports wagers in states such as Illinois and New Jersey. 

Despite the downward revision of fiscal year revenue and sluggish stock, Robins expressed confidence.

“This is the most bullish I have ever felt about our future,” Robins said.

Super Bowl champion Vernon Davis racked up nearly $80 million while playing, but he’s run innovative routes to secure off-the-field success, too, from letting fans invest in his future earnings to backing beverage brands and owning sports teams.

The longtime 49ers tight end most recently invested in G.O.A.T. Fuel, Jerry Rice’s beverage brand that uses cordyceps mushrooms. He’s also backed Riff Energy and Path Water, brands that tout sustainability. He says those deals show he invests with passion and purpose.

“If I’m not passionate about something, I’m probably not going to be part of it,” he tells Front Office Sports. 

Davis, 41, recently spoke to FOS about his investment portfolio, including one opportunity he regrets passing up on, as well as how he has continued to reinvent himself since walking away from the game of football in 2020.

Front Office Sports: Your most recent investment was G.O.A.T. Fuel, Jerry Rice’s beverage brand that uses cordyceps mushrooms as an ingredient. How did that come about?

Vernon Davis: Jerry’s a good friend of mine, and we both played for the 49ers, so we were already family. I was a huge fan of the product before I invested. Usually, when I love something and can see the opportunity to be involved organically, either through investing or as an ambassador, I inquire. Jerry came back to me and said “we would love to have you.”

FOS: While you were playing, you let fans invest in your future career earnings through a company called Fantex. Was that your first foray into the investment world?

VD: Before Fantex, I was part of Krave Jerky. That was my very first investment where I had some success. We sold to Hershey’s [the 2015 deal was worth more than $220 million].

After that came Fantex. That was a great journey and a great concept. They dissolved the company, and the founders launched a new firm called X10, so anything that had to do with Fantex is no longer in existence. 

FOS: You’ve also invested in sports teams, like DC Power—a  women’s soccer team that plays in the USL Super League—and Australian basketball team the Brisbane Bullets. How do sports teams compare to your other investments?

VD: Completely different. I’m on the other side of it now, so I’m looking at how fans are engaging, how many people come to the game, and what their experiences are like after they enter the gates but before they sit down in their seats.

I’m continuing to learn, too. This is not my world. My world has always been playing the game of football. But as time goes by, you gain more knowledge about whatever it is you’re doing. That’s the ride I’m taking right now.

FOS: Have you thought about owning an NFL team, even if it’s a minority stake?

VD: Yeah, I’ve thought about it. If the opportunity ever comes about, I would definitely look into it. Any team that is reputable, respected, and has been in existence for many years—like the 49ers—I think it’s a no-brainer for sure. 

FOS: Are there any examples of something you passed on that, looking back, you wish you would have invested in?

VD: I looked at Ring, the home security system. I met the creator and had the opportunity to do a direct investment. I didn’t. I wish I would have, because Ring has changed the way we look at protection when it comes to alarm systems.

FOS: Outside of investing, what keeps you busy post-playing career?

VD: I’ve done a lot in entertainment. I did a few films, and you know what they say—if you hang around the barbershop long enough, you’ll get a haircut. It was like that with me and film. I just kept meeting people, showing up in different films, and next thing you know I’ve done 20-plus films in the last six years. Right now, I’m on set for an HGTV show called Rock the Block.

I also have a weekly podcast, Next Role, where I interview guests from athletes and entertainers to entrepreneurs and business leaders. 

FOS: Do you have a dream guest?

VD: Steve Harvey. I love his journey; he has continued to evolve. I would also love to have [Dwayne “The Rock” Johnson].

FOS: O.K., last thing. Who is your biggest role model?

VD: The only role model I had growing up was my grandmother. She didn’t go to school for business, she didn’t understand investing and things of that nature—but she was very wise in how to approach things. She was my inspiration for everything that I’m doing.