Flutter, DraftKings Profit From Prediction-Market Combos as Kalshi Sports Volume Hits $630 Million
Updated
Updated · Financial Times · May 27
Flutter, DraftKings Profit From Prediction-Market Combos as Kalshi Sports Volume Hits $630 Million
2 articles · Updated · Financial Times · May 27
$630 million of Kalshi combo volume in the week of May 11 came from sports-linked contracts, underscoring how multi-leg bets have become a major prediction-market product.
Flutter and DraftKings are monetizing that demand by market-making on prediction platforms, with Flutter saying it is already making money and DraftKings calling it one of its fastest paths to profitability.
Kalshi's combos generated about $967 million in weekly notional volume—roughly a quarter of total activity—with another $330 million tied to mostly sports-heavy cross-category combos.
Retail traders lost about $117 million on Kalshi combos from Jan. 1 to April 30, according to Sportico-cited Dune data, suggesting the economics resemble sportsbook parlays despite prediction markets' no-house-edge pitch.
The shift blurs the line between peer-to-peer prediction markets and traditional sportsbooks, giving established gambling groups a new revenue stream even as those markets pressure their core business.
Are prediction markets betraying their 'no house edge' promise as gambling giants move in to profit?
With regulators scrambling, where is the line between innovative financial markets and digital-age gambling?