DraftKings podle generálního ředitele Jasona Robinse rychle pronikl mezi tři největší hráče na trhu s predikčními kontrakty a rozšiřuje nabídku i mimo oblast sportu.
MarketBeat Week in Review – 10/05 - 10/09DraftKings NASDAQ: DKNG CEO Jason Robins said the company has quickly become a top-three player in prediction markets after launching DraftKings Exchange only a few months ago, while emphasizing that its established sportsbook business remains central to its strategy amid legal uncertainty surrounding sports event contracts.
Speaking with CNBC correspondent Contessa Brewer at an industry event, Robins said DraftKings has gained share despite offering prediction products in a more limited set of states than some competitors. DraftKings does not offer sports prediction markets in states where it holds sports-betting licenses, a decision Robins said protects the company’s regulated gaming operations and relationships with state regulators.
Get DraftKings alerts:
Prediction-market growth and legal uncertainty
DraftKings Stacks the Deck: The $800M Prediction PivotRobins said DraftKings sees itself as positioned to benefit whether sports prediction markets remain broadly permitted or face restrictions through court decisions. He said the company has not made prediction markets its sole business, unlike some companies that are more dependent on the category.
“We actually feel like we put ourselves in this win-win spot where no matter what the outcome of that whole process is, we are well-positioned going forward,” Robins said.
Wall Street Is Betting These 3 Beaten-Down Stocks Have More Room to RunHe said DraftKings would like to offer all of its products to customers, including both sportsbooks and prediction markets. Even if sports contracts were restricted, he said the company sees opportunities in non-sports categories such as elections and financial markets.
Robins said DraftKings was “pleasantly surprised” by interest in financial markets, an area he said he had previously underappreciated. The company plans to further develop its non-sports prediction offerings over the coming months before promoting them more heavily, he said.
Asked whether the lower-tax nature of prediction markets makes that model particularly appealing compared with state-regulated sportsbooks, Robins said he expects states could eventually seek to tax a permanent sports prediction-market business. He also said traditional sportsbooks offer a better overall experience for most customers, citing the continued dominance of sportsbook wagering over exchange-based betting in Europe.
Unified wallet and product strategy
Robins said DraftKings’ work on sportsbook technology and product development helped accelerate its prediction-market rollout. Certain technology components could be adapted for prediction products, while years of customer data and testing helped the company understand product design and messaging, he said.
The company has also moved to combine multiple offerings within a unified app and wallet, allowing customers to access products such as sportsbook, Jackpocket, prediction markets and iCasino without separate accounts or deposits where available.
Robins said the strategy is designed to reduce friction for customers and has become more practical as technology has improved app performance and personalization. He said DraftKings uses artificial intelligence and machine learning to make content more relevant, such as surfacing Milwaukee Brewers-related offerings for a customer who regularly engages with that team.
“If we’re not using the latest technologies to do that, we’re not going to live up to our customers’ standards,” Robins said.
Responsible gaming and marketing concerns
Brewer asked Robins about reporting that DraftKings uses AI to target losing customers. Robins rejected that characterization, saying the company’s use of AI is often overstated and that machine-learning tools are used to tailor relevant content rather than encourage harmful behavior.
He said DraftKings operates a responsible-engagement team that reviews accounts when the company identifies potential signs of problematic play. According to Robins, the company uses the same responsible-trading tools in its prediction products that it uses in online sports betting, even when it is not required to do so.
Robins said he personally reviewed the customer history cited in a ProPublica report and found that DraftKings had sent “hundreds” of responsible-gaming notices and that a VIP host had repeatedly offered options including cooling-off periods and deposit limits.
He said the company generally seeks to encourage customers to take voluntary action, rather than automatically restrict accounts in every case, because behavior patterns can be difficult to interpret and voluntary limits may be more effective than restrictions that could lead a customer to another platform.
Investor outlook
Robins said uncertainty around the legal status of prediction markets may be limiting investor enthusiasm for DraftKings’ growing presence in the sector. He said investors may assign more value to the business as the company demonstrates growth in non-sports markets and as legal outcomes become clearer.
“Public markets are the opposite,” Robins said of private markets’ appetite for uncertainty. “They do not like uncertainty. They want predictable, steady earnings.”
Robins said DraftKings expects to report earnings in two weeks.
About DraftKings (NASDAQ:DKNG)DraftKings Inc is a digital sports entertainment and gaming company that operates online and mobile platforms for sports betting, casino gaming and daily fantasy sports. Its offerings include the DraftKings Sportsbook, DraftKings Casino and daily fantasy contests covering a range of professional and collegiate sports.
The company also provides related entertainment and media content through DraftKings Network, along with free-to-play games, promotions and other interactive products designed to complement its sports and gaming platforms.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
Should You Invest $1,000 in DraftKings Right Now?Before you consider DraftKings, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and DraftKings wasn't on the list.
While DraftKings currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
Looking for higher dividend income in 2027? Discover seven high-yield dividend stocks with attractive payouts, proven dividend histories and growth potential.
Get This Free Report
Continue following MarketBeat
Add MarketBeat as your preferred source on Google to see our latest stories in your feed.
Jefferies has cut its 2026 adjusted earnings forecast for Draftkings Inc (NASDAQ:DKNG), the US sports betting and online gaming company, by 15% as increased spending on prediction markets and slower iGaming growth weigh on near-term profitability.
The broker expects DraftKings to incur an additional $100 million in prediction market expenses during the second half of 2026, taking total spending above its initial guidance of $200 million to $300 million.
Jefferies maintains a Buy rating and a $44 price target, arguing that regulatory developments and eventual earnings growth offer an attractive risk-reward profile at current valuation levels.
The broker expects prediction market regulation to benefit DraftKings and views further legalisation of online casino gaming, known as iGaming, across the US as a matter of timing rather than likelihood.
DraftKings' online sports betting business continues to show resilience, with early National Football League season data indicating low-teens year-on-year growth in betting volume.
Partial third-quarter state results put DraftKings narrowly ahead of FanDuel in US gross gaming revenue share, at 31.8% against 31.5%, while DraftKings' revenue growth in the segment reached 10.6%, compared with 7.9% for its rival.
However, competition remains intense as Fanatics, Hard Rock and Bet365 increase marketing expenditure, while prediction markets introduce another challenge to traditional sports betting operators.
iGaming presents a separate concern, with DraftKings' growth slowing to 5.4% in the second quarter before state-level data indicated a possible recovery to about 6.9% in the third quarter.
Jefferies said those figures would represent the two slowest quarterly growth rates in DraftKings' history if confirmed, although new gaming content and promotions focused on slot games could help improve performance.
The broker reduced its third-quarter revenue forecast to $1.37 billion from $1.397 billion and expects an adjusted earnings loss before interest, tax, depreciation and amortisation of $67 million, compared with its previous forecast loss of $42 million.
For 2026, Jefferies lowered its revenue estimate to $6.5 billion from $6.527 billion and its adjusted earnings forecast to $577 million from $678 million.
The broker forecasts revenue of $7.623 billion and adjusted earnings of $1.069 billion in 2027, while reducing its valuation multiple for earnings before interest, tax, depreciation and amortisation from 20 times to 18 times.
DraftKings has scaled its prediction market operation into the third-largest US exchange by volume, with weekly trading exceeding $700 million, but Jefferies believes regulatory action against the sector could provide the strongest support for its shares.
The broker sees potential for such action by summer 2027, while further US iGaming legalisation could provide another catalyst for growth.
No Investment Advice
Proactive Investors is a publisher of financial news and information. No content in this record, or published on the Proactive Investors website (the "Site"), constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. No content is tailored to any specific person's needs, objectives, or financial situation.
Proactive Investors is not a registered investment adviser or broker-dealer and does not provide personalized investment advice. Nothing in this record constitutes investment advice or a recommendation to buy, hold, or sell any security. None of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value, or suitability of any particular security, portfolio, transaction, or investment strategy. Any decision to buy, sell, or hold a security should be made only after consulting an appropriately qualified, licensed financial adviser and reading all relevant offering documentation.
This record, and any record we publish by or on behalf of our clients, should not be construed as an offer or solicitation to buy or sell any product or security. Our content is independent financial journalism, produced in a neutral, objective style with full source attribution.
In accordance with the Federal Trade Commission's guidelines on material connections, Proactive Investors discloses the following: we may receive cash or, in some cases, equity compensation from companies whose news is distributed through our platform. This compensation is for news distribution and media services, not for editorial content or coverage decisions. Where Proactive Investors has a commercial relationship with a company covered in this record, that relationship is disclosed within the article. Any such relationship does not determine, influence, or shape the editorial content produced. Where we receive equity compensation, such securities are held independently by a third-party broker and sold at the broker's discretion.
The Site may contain opinions from time to time regarding securities mentioned in other products, including company-related products, and those opinions may differ from those obtained through another Proactive Investors product. Opinions and commentary reflect the views of the named author at the time of writing and are subject to change without notice.
Price and other data is supplied by sources believed to be reliable. Any calculations are made using such data. Neither the data nor the calculations are guaranteed by those sources, by Proactive Investors, by the information providers, or by any other person or entity, and may not be complete or accurate.
From time to time, reference may be made in our marketing materials to previously published articles or opinions. Such references may be selective, may reference only a portion of an article, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.
Společnost DraftKings má navzdory doporučením analytiků v rozmezí „koupit“ až „silně koupit“ hodnocení Zacks Rank #5. Konsenzuální odhad zisku pro letošní rok se za poslední měsíc snížil o 19 % na 0,9 USD.
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?
Let's take a look at what these Wall Street heavyweights have to say about DraftKings (DKNG - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
DraftKings currently has an average brokerage recommendation (ABR) of 1.61, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 37 brokerage firms. An ABR of 1.61 approximates between Strong Buy and Buy.
Of the 37 recommendations that derive the current ABR, 26 are Strong Buy and three are Buy. Strong Buy and Buy respectively account for 70.3% and 8.1% of all recommendations.
Brokerage Recommendation Trends for DKNG
Check price target & stock forecast for DraftKings here>>>
The ABR suggests buying DraftKings, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
Zacks Rank Should Not Be Confused With ABRIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Should You Invest in DKNG?Looking at the earnings estimate revisions for DraftKings, the Zacks Consensus Estimate for the current year has declined 19% over the past month to $0.9.
Analysts' growing pessimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates lower, could be a legitimate reason for the stock to plunge in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #5 (Strong Sell) for DraftKings. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, it could be wise to take the Buy-equivalent ABR for DraftKings with a grain of salt.
DraftKings rozšiřuje nabídku Predictions po celé zemi; do 7. srpna 2026 ji letos využilo více než 600 000 zákazníků, přičemž náklady na akvizici byly nižší než u Sportsbooku.
Key Takeaways DraftKings' Super App expands its reach beyond Sportsbook states through its nationwide Predictions offering.Over 600,000 customers used Predictions through Aug. 7, 2026, with acquisition costs below Sportsbook levels.National media partnerships, cross-selling opportunities and strong engagement likely support DKNG's growth. DraftKings Inc. (DKNG - Free Report) is expanding its addressable customer base through its Super App strategy, which brings its offerings together under the DraftKings Sports app. Its Predictions offering allows customers to trade contracts tied to event outcomes, including sports, extending access into states where the company’s Sportsbook is unavailable. The strategy builds on DraftKings’ existing brand, technology and marketing infrastructure to pursue incremental growth.
Early adoption supports the strategy. As of Aug. 7, 2026, more than 600,000 customers had engaged with Predictions year to date. Acquisition costs were well below those for Sportsbook customers, while early retention rates and trading volume per customer were similar to those of Sportsbook customers. DraftKings identified its nationwide offering as an accelerator of customer acquisition, with Spanish-language availability also helping attract additional customer segments.
The broader footprint could improve the productivity of existing marketing spending. DraftKings’ partnerships with ESPN, NBC, Amazon and sports leagues provide national exposure that now reaches potential customers in additional Predictions markets. Its portfolio, including fantasy sports, lottery and horse racing, also creates opportunities to introduce existing customers to Predictions and strengthen engagement across products. During the second quarter of 2026, DraftKings highlighted cross-selling capabilities that had improved since its early Sportsbook launches.
DraftKings’ unified platform, national marketing presence and encouraging Predictions adoption could support growth beyond Sportsbook states. Translating that reach into sustained financial benefits will likely depend on building customer awareness and improving monetization over time. While regulatory uncertainty remains, early acquisition efficiency and customer engagement provide a basis for cautious optimism about the Super App’s contribution to longer-term growth.
DKNG’s Price Performance, Valuation & EstimatesDraftKings’ shares have declined 26% in the past three months compared with the industry’s 18.1% fall. In the same time frame, other industry players like Accel Entertainment, Inc. (ACEL - Free Report) , Boyd Gaming Corporation (BYD - Free Report) and PENN Entertainment, Inc. (PENN - Free Report) have lost 19.6%, 24.4% and 13.5%, respectively.
DKNG Three-Month Price Performance
Image Source: Zacks Investment Research
DKNG stock is currently trading at a discount. It is currently trading at a forward 12-month price-to-sales (P/S) multiple of 1.30, below the industry average of 1.64. Conversely, industry players, such as Accel Entertainment, PENN Entertainment and Boyd Gaming, have P/S ratios of 0.64, 0.27 and 1.20, respectively.
DKNG’s P/S Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for DraftKings’ 2026 earnings per share has declined in the past 60 days.
EPS Trend of DKNG Stock
Image Source: Zacks Investment Research
The company is likely to report solid earnings, with projections indicating a 36.4% surge in 2026. Conversely, industry players like Accel Entertainment and PENN Entertainment are likely to witness a rise of 15% and 117.7%, respectively, year over year in 2026 earnings. Meanwhile, Boyd Gaming’s 2026 earnings are expected to decline 3.2% year over year.
DKNG stock currently has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Bank of America zvýšila doporučení pro DraftKings z „neutrální“ na „koupit“ a ponechala cílovou cenu na 27 USD poté, co akcie za poslední měsíc klesly o 19 %.
DraftKings shares have shed nearly a fifth of their value in a month, and now the analyst who sat out the entire decline is suddenly turning bullish. Whether that call signals a real floor or just wishful thinking hinges on…
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
A Bank of America (NYSE:BAC | BAC Price Prediction) analyst who kept the firm on the sidelines for a year has turned bullish, arguing that Wall Street estimates for DraftKings (NASDAQ:DKNG) are bottoming. That call arrives after a hard month for U.S. online sportsbook stocks. DraftKings stock is at $19.53 as the upgrade circulates through a beaten-down group.
Over the past month, DraftKings shares are down 19%, and that slide set up this bottom-calling debate. Meanwhile, shares of Flutter Entertainment (NYSE:FLUT), the owner of FanDuel and the most direct rival to DraftKings, are down 20% over the past month, a slightly deeper drop than the decline in DraftKings shares. Shares of MGM Resorts International (NYSE:MGM), the casino operator behind the BetMGM joint venture, are down 26% over the same stretch, the steepest slide among the three operators.
For sector-level context, the Roundhill Sports Betting & iGaming ETF (NYSEARCA:BETZ) is down 13% over the past month. In contrast, the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is up 0.3% over the same period. Double-digit losses for all three operators against a broad market that barely moved point to a repricing of the entire category at once.
Bank of America Abandons the Sidelines on DraftKings Bank of America analyst Shaun Kelley upgraded DraftKings stock to Buy from Neutral and kept the firm’s price target on the shares at $27. Kelley wrote that Bank of America had stayed on the sidelines for the past year because of a difficult event path from prediction markets and material risk to estimates. The new note reads prediction markets as a win-win outcome for DraftKings and flags reduced cannibalization risk for the company.
Two sources drove the slide in DraftKings stock. Kalshi and Polymarket are privately held platforms that let users trade contracts on event outcomes such as sports results, and there is uncertainty over how regulators may treat those platforms. As the operator of a proprietary prediction-market exchange, DraftKings has indicated continued spending on that product. For Q2 2026, DraftKings’ revenue came in at $1.44 billion, missing expectations.
Group Selloff Clouds the Bottom Call MGM Resorts is primarily a casino operator, yet its shares fell harder than either online-focused rival over the past month, complicating any read that event-contract competition alone explains the slide. The Roundhill fund holds both DraftKings and Flutter among its largest positions, so the ETF’s decline partly mirrors those two stocks.
On the bull side, Kelley’s reversal stands out because Bank of America avoided DraftKings stock for a year over exactly this risk, and owning a prediction-market exchange gives DraftKings a direct way to compete for event-contract demand.
The upgrade leaves the competitive field untouched, skeptics say. Kalshi and Polymarket are still drawing event-contract volume that DraftKings must pay to win back, and those costs could keep pressure on margins even if Kelley turns out right about estimates.
What to Watch Next The next quarterly results from DraftKings can test whether estimates have truly bottomed, and a fresh shortfall after the second-quarter revenue miss would weaken the bottoming argument, while a clean quarter would support the Bank of America reversal view.
Given how sharply the entire category has moved, investors should keep their exposure to DraftKings stock measured until the next results back up the upgrade. Building their DKNG share position in stages can limit the damage if event-contract competition continues to put pressure on the group.
Contact [email protected] for any questions or corrections.
DraftKings spustil regulovanou burzu predikčních kontraktů DKeX; Bank of America očekává, že do roku 2027 přinese tržby ve výši 600 až 800 milionů USD.
DraftKings Inc. NASDAQ: DKNG is moving to capture the prediction market sector through its newly launched, CFTC-regulated DKeX exchange.
DraftKings Today
$19.09 -0.66 (-3.36%)
As of 01:23 PM Eastern
This is a fair market value price provided by Massive. Learn more.
$18.52▼
$36.98$33.95
As its primary rival, Kalshi, faces state-level litigation, DraftKings' pivot offers a remedy to the sports seasonality that has historically plagued its earnings. This transition opens a high-margin revenue vertical of about $800 million, and investors are accumulating the company's stock as it sits near 52-week lows.
The legacy sportsbook model is facing headwinds. Recent data shows an approximate 4.6% year-over-year revenue contraction to around $1.44 billion, signaling that the core betting business requires a catalyst.
Get DraftKings alerts:
Sports betting relies heavily on seasonal events like the NFL schedule, leaving revenue gaps during summer months. By pivoting to event-driven contracts, DraftKings creates a year-round engagement engine. Investors evaluating DKNG's current price of around $19 are weighing near-term margin compression against the long-term cash flow potential of a regulated exchange.
Raising the Stakes: DKeX and the $800 Million VectorBank of America recently upgraded DraftKings from Neutral to Buy and maintained a $27 price target. This localized upward price action stems from the improving risk-reward profile created by the prediction market rollout. Bank of America's financial modeling indicates that the proprietary DKeX exchange could generate an estimated $600 million to $800 million in revenue by 2027. This includes roughly $400 million in direct transaction fees and up to $400 million in internal market-making operations.
Understanding the economics requires looking at the underlying infrastructure. DraftKings launched DKeX in June 2026, powered by its previous acquisition of Railbird Technologies. Owning the exchange software outright reduces external vendor costs and lets DraftKings capture the full margin on transactions. Instead of merely taking a small cut of a traditional sports wager, DraftKings now also operates as an event-contract exchange.
Event contracts function as binary options, where users buy a "yes" or "no" share on a specific outcome. Because the exchange simply matches buyers and sellers, the house takes no directional risk. DraftKings collects a transaction fee on every trade. Combined with internal market-making operations that provide liquidity, the platform captures margin on both the spread and the transaction fee.
Sanford C. Bernstein estimates DKeX will hit about $1 billion in consumer trading volume by December 2026. This projection provides a near-term metric for tracking the pivot's success relative to the recent decline in sportsbook revenue. The prediction market model provides year-round event trading that smooths out the volatile seasonal revenue curves associated with traditional sports betting.
Boxing Out the CompetitionThe competitive landscape presents some immediate challenges to DraftKings' operations. Fanatics is currently deploying an estimated $1 billion marketing budget for its betting operations. This escalation in advertising spending drives up customer acquisition costs across the sector, threatening traditional sportsbooks. DraftKings is utilizing the prediction market as an alternative, lower-cost acquisition channel.
Political events, economic data releases, and pop-culture outcomes attract a different demographic from traditional sports bettors. By cross-selling these new users into the core casino and sportsbook applications, DraftKings can lower its overall blended customer acquisition cost and improve total user lifetime value. This creates a more sustainable growth trajectory without engaging in a costly advertising war.
Private competitor Kalshi is reportedly seeking a $40 billion valuation and captured early NFL Week One prediction market share. Kalshi faces severe regulatory friction on its path to public markets. The private exchange is currently embroiled in aggressive litigation with multiple state attorneys general, including a recent high-profile lawsuit from New York.
This legal battle creates a structural advantage for DraftKings. The company already operates within an established state-by-state compliance framework and holds the necessary Commodity Futures Trading Commission approvals. While Kalshi dedicates capital to appellate courts and state regulators, DraftKings is deploying its cash toward user acquisition and platform liquidity. Regulatory compliance serves as a distinct operational moat, allowing DraftKings to capture retail market share in the prediction vertical without fighting new legal battles.
Hedging the Bet: DraftKings' Balance SheetInternal and external conviction are currently diverging, creating an interesting setup for value-oriented investors. Company insiders, including Director Jocelyn Moore, who liquidated roughly 10,700 shares in August 2026, have reduced their positions during the recent downward trend. Executive sales often signal near-term caution, but institutional sentiment provides a clear counterweight.
85th Percentile
Moderate Buy
77.8% Upside
Bearish
N/A
0.30 Selling Shares
202.50%
See Full Analysis
Entities like QRG Capital Management and NewEdge Advisors accumulated shares during the second quarter, treating the drop near the 52-week low of $18.52 as a strategic entry point. DraftKings' stock currently trades around $19 with a market capitalization of about $9.7 billion. Sell-side analysts maintain a Moderate Buy consensus, supported by an average 12-month price target of $34.04.
The fundamentals reveal a business in transition, navigating a complex macroeconomic environment. DraftKings carries a forward price-to-earnings ratio of about 48 and a heavily leveraged debt-to-equity ratio of 3.22. In a higher-interest-rate environment, carrying $3.22 in debt for every dollar of equity restricts financial flexibility. This leverage limits capacity to sustain a prolonged capital war against well-funded private rivals. Servicing this debt requires consistent cash flow, making DKeX's success vital for the company's future growth.
DraftKings recently beat net income, posting 9 cents in earnings per share versus a consensus estimate of 2 cents. This profitability pivot shows the company can optimize operations and cut unnecessary overhead while actively funding the DKeX expansion. With a beta of around 1.6, the stock is more volatile than the broader market. The stock is down about 44% year-to-date, reflecting market skepticism about the top-line contraction. However, recent institutional accumulation suggests professional money managers are focusing on 2027 cash flow projections rather than trailing 30-day performance.
The Final Hand: Evaluating the Event Exchange PivotDraftKings is fundamentally altering its core business model. The shift from a seasonal sports-beta play to a holistic, real-time event exchange provides a clear path to high-margin revenue generation. Monetizing election cycles and geopolitical events reduces reliance on the traditional sports calendar and creates a stickier, more engaged user base.
This transition will require careful execution. The heavy debt load and the recent contraction in core sportsbook revenue mean the DKeX platform must perform exactly as management models project. The $800 million projected revenue vector offers a compelling offset to rising customer acquisition costs, provided DraftKings maintains its regulatory advantage over private challengers. Investors evaluating consumer discretionary stocks might monitor DraftKings' monthly DKeX trading volumes heading into the winter months to gauge the success of the company's high-margin pivot before taking a position.
Should You Invest $1,000 in DraftKings Right Now?Before you consider DraftKings, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and DraftKings wasn't on the list.
While DraftKings currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
Robotics and automation are rapidly becoming essential infrastructure across healthcare, manufacturing, logistics, and many other industries. "Physical AI" is coming. Learn which seven companies are most positioned to benefit as intelligent robots enter the workforce.
Get This Free Report
Continue following MarketBeat
Add MarketBeat as your preferred source on Google to see our latest stories in your feed.
DraftKings plánuje přesunout větší objem Predictions na DKeX, aby si ponechal poplatky, které by jinak inkasovali externí poskytovatelé. Firma čeká, že to podpoří vyšší ziskovost na jednoho zákazníka do roku 2027.
Key Takeaways DraftKings plans to move more Predictions volume to DKeX, retaining fees paid to external providers.DKeX complements in-house brokerage and market-making, with operations live on three exchanges.Predictions may deliver lower revenue per customer but comparable gross profit due to higher margins. DraftKings Inc. (DKNG - Free Report) plans to move more Predictions trading volume onto its DKeX exchange to retain fees that would otherwise accrue to external providers. Launched in June 2026, DKeX complements the company’s in-house brokerage and market-making operations.
DraftKings obtained Futures Commission Merchant approval in July, further advancing its integration strategy. The approach builds on its Sportsbook experience, where approximately 95% of sports content is priced and traded in-house.
Greater control over the platform could also support proprietary content, stronger retention and improved customer lifetime value. During its second-quarter 2026 earnings call, DraftKings reported that its market-making operation was live on three exchanges, with profitable activity on both singles and combos.
As DKeX grows, the company expects additional market-making opportunities and deeper liquidity to strengthen its offering. Although Predictions is expected to generate lower revenue per customer than Sportsbook, its higher-margin profile could support comparable gross profit per customer over time.
DKeX’s rollout could support higher profit per customer into 2027 as DraftKings brings more trading activity in-house. The extent of that improvement will likely depend on the pace of migration and the platform’s ultimate monetization potential.
DKNG’s Price Performance, Valuation & EstimatesDraftKings’ shares have declined 26.6% in the past three months compared with the industry’s 21.7% fall. In the same time frame, other industry players like Accel Entertainment, Inc. (ACEL - Free Report) , Boyd Gaming Corporation (BYD - Free Report) and PENN Entertainment, Inc. (PENN - Free Report) have fallen 16.5%, 24.2% and 33.4%, respectively.
DKNG Three-Month Price Performance
Image Source: Zacks Investment Research
DKNG stock is currently trading at a discount. It is currently trading at a forward 12-month price-to-sales (P/S) multiple of 1.26, below the industry average of 1.53. Conversely, industry players, such as Accel Entertainment, PENN Entertainment and Boyd Gaming, have P/S ratios of 0.62, 0.26 and 1.16, respectively.
DKNG’s P/S Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for DraftKings’ 2026 earnings per share has declined in the past 60 days.
EPS Trend of DKNG Stock
Image Source: Zacks Investment Research
The company is likely to report solid earnings, with projections indicating a 36.4% surge in 2026. Conversely, industry players like Accel Entertainment and PENN Entertainment are likely to witness a rise of 15% and 117.5%, respectively, year over year in 2026 earnings. Meanwhile, Boyd Gaming’s 2026 earnings are expected to decline 3.1% year over year.
DKNG currently has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Wall Street analysts are nearly unanimous that DraftKings is a buy, yet the stock just hit its lowest price since 2023 while a private rival with no sportsbook license is reportedly worth four times as much. Something in that math…
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
DraftKings (NASDAQ:DKNG | DKNG Price Prediction) trades at $19.59, while the consensus analyst price target stands at $35.12. That gap implies upside of 79.28%. The market may be mispricing a durable franchise, or analysts may be slow to rebuild their models.
The stock dropped 7.42% in its latest session and set a new fifty-two-week low of $19.55. It was the lowest level since April 2023, leaving shares about 72% below their March 2025 peak.
Market value has fallen to $10.5 billion. Meanwhile, a private rival selling a cheaper version of the same product is reportedly worth several times as much.
Brazil Sparked the Selloff, but the Slide Began Months Earlier FanDuel parent Flutter Entertainment (NYSE:FLUT) halted operations in Brazil. The halt came after the country’s online betting ban took effect on September 25, and the company then issued a profit warning. Its shares fell 15.99% over the past week to their lowest level in years.
DraftKings has no operations in Brazil, so its 10.14% weekly decline was a sympathy move. Penn Entertainment (NASDAQ:PENN) slipped 8.11% that week.
Brazil explains one week, however. DraftKings is down 22.45% over one month and 53.69% over one year.
Second-quarter revenue of $1.44 billion missed the $1.51 billion consensus. Sportsbook net revenue margin narrowed to 6.8% from 8.7%. Adjusted EPS of $0.09 missed the $0.1917 estimate.
Prediction Markets Undercut Sportsbooks on Price Prediction markets let people trade contracts on event outcomes, including sports. Kalshi now dominates NFL trading volume and reportedly plans to raise $1 billion at a $40 billion valuation. The company has not confirmed this.
Kalshi has been valued at about four times DraftKings’ market value. An exchange matches two users and takes a fee. That makes it structurally cheaper than a sportsbook that sets odds and keeps a margin.
In a Citizens survey, 35% of respondents cited “lower prices as a reason for choosing prediction markets over sportsbooks.” DraftKings launched its own Predictions product and reports “no discernible impact” on sportsbook revenue.
But management acknowledges Predictions revenue per customer may initially trail the sportsbook’s. Winning that category could compress DraftKings’ own margins.
Why Analysts Still See Large Upside Among analysts covering DraftKings, 5 rate the stock a strong buy, 24 a buy, 6 a hold and 1 a strong sell. Citizens cut its target to $35 from $37, still far above the price.
Analysts point to guidance. Management kept its guidance unchanged. Full-year revenue guidance of $6.5 billion to $6.9 billion and adjusted EBITDA guidance of $700 million to $900 million remain in place, and it says the core business is on track for about $1 billion in adjusted EBITDA.
The $35.12 consensus sits near the fifty-two-week high of $38.06, suggesting targets reflect older prices.
Four Conditions the Target Needs to Survive Monthly unique payers rose about 9% to 3.6 million, but average revenue per payer fell about 13% to $132. Hold percentage must recover, and promotional spend cannot step up. Sales and marketing expense rose to $322.5 million from $233.2 million.
State regulation must stay closed to further exchange expansion, with sportsbooks licensed state by state, while exchanges operate under a federal derivatives framework. A House Oversight Committee investigation into insider trading on prediction markets could slow the competitor. The next handle-and-hold reports will test these conditions.
The risk/reward at current levels looks poor. The implied upside requires all four conditions to hold, and the exchange pricing model works against at least two. Sports consumer volume rose 15% to $13.14 billion, and the company bought back $154.2 million of stock in the first half. Insiders, however, have been net sellers across 72 recent transactions.
If you are near retirement, a single consumer discretionary stock facing a structural pricing threat is a poor fit. The S&P 500 rose 15.15% over the past year while DraftKings fell 53.69%. The stock would look more attractive if revenue per payer stabilizes without greater promotions.
Contact [email protected] for any questions or corrections.
DraftKings uvedl silný start sezony NFL, když měsíční objem sázek sportsbooku vzrostl meziročně o 15 % a objem prediction markets se vyšplhal na téměř 2,5násobek červencové úrovně. Výhled na zhruba 1 miliardu USD upravené EBITDA pro rok 2026 zůstává beze změny.
DraftKings’ Predictions Push Could Be the Bet That Matters MostDraftKings NASDAQ: DKNG CEO and Chairman Jason Robins said the company is seeing strong early-season engagement across its core sportsbook business and its newer prediction markets offering, while maintaining its expectation of about $1 billion in adjusted EBITDA for 2026.
Get DraftKings alerts:
Speaking with Wells Fargo gaming, lodging and leisure analyst Trey Bowers, Robins said sportsbook handle had risen 15% year over year month-to-date at the start of the NFL season. He also said the company’s iGaming business has begun to regain market share in certain states, with growth accelerating in recent months.
Why "Big Short" Investor Michael Burry Sees Upside in Beaten-Down Sportbook Stocks“Really, really healthy trends in the core business,” Robins said. He added that the core business remains on track to deliver approximately $1 billion in adjusted EBITDA in 2026 and should grow “pretty materially” in 2027. DraftKings plans to provide a more detailed 2027 outlook during its November earnings call.
Prediction Markets Volume Rises Robins characterized prediction markets as a significant growth opportunity, saying customer trading volume had increased to nearly 2.5 times its July level and was continuing to rise weekly. He said DraftKings had approached a double-digit share of consumer volume in sports prediction markets, with a higher share in NFL-related activity.
DraftKings Hits the Jackpot With Super App PivotThe company has prioritized major U.S. sports in building its offering. Robins said DraftKings now has three times as many NFL markets as competing prediction products, along with roughly 1.5 times as many college football and Major League Baseball markets.
He said the company has moved rapidly from a product that was not competitive less than a year ago to what it believes is the strongest sports prediction offering in the market. DraftKings is still expanding coverage in some smaller sports, including tennis, he said.
Product breadth, order execution and the ability to combine markets are key differentiators, according to Robins. He said nearly 30% of NFL Sunday prediction-market activity came from combinations, or combos, a level that took DraftKings more than five years to reach in its traditional sportsbook business.
DraftKings is also seeing efficient customer acquisition in states without licensed online sports betting, Robins said. Based on early results, the company expects to increase spending, potentially pulling forward some investment previously contemplated for 2027. He said the spending would include both marketing and customer promotions, though the ultimate amount remains data-dependent.
Universal Account and Cross-Sell Efforts Robins said DraftKings’ universal account experience is now operating in most states, allowing customers in many jurisdictions to access their accounts and balances more seamlessly while traveling. A handful of states have not yet fully integrated, he said.
The company has more than 1 million customers who have engaged with its prediction product, according to Robins, and he expects that total to reach multiple millions by the end of the NFL season. Growth has been strongest in large states without legal online sports betting, including California, Texas, Florida and Georgia.
DraftKings has also seen meaningful conversion from its existing customer base. Robins said the company is cross-selling double-digit percentages of acquired prediction customers into products including Pick6, lottery and daily fantasy sports. He said some users are also converting into crypto trading, which he described as a potential additional contributor to the business.
On the unsettled legal and regulatory environment surrounding prediction markets, Robins said DraftKings is seeking clarity but does not control court outcomes. He argued the company is positioned to benefit whether sports prediction markets remain available or are restricted, citing the strength of its established sportsbook and other digital gaming products.
“We are well set up regardless of the outcome,” Robins said, while adding that he would prefer prediction markets to remain available because they represent an incremental total addressable market.
iGaming Recovery and Margin Targets Robins said DraftKings has regained share “pretty substantially” in a couple of iGaming states, supported by new content, product features and marketing execution. He cited the online launch of Lightning Link, a game previously unavailable online, as well as improvements to the company’s daily rewards program.
The company expects to launch iGaming in Maine later this year, where Robins said DraftKings and Caesars would be the sole operators. He also pointed to momentum for additional iGaming legalization in the Washington, D.C., Maryland and Virginia region, though he declined to forecast which states might act or when.
For existing online sportsbook states, Robins said DraftKings continues to target an adjusted EBITDA margin of roughly 30%, plus or minus a couple hundred basis points. He cited higher parlay mix, cost-control initiatives, declining general and administrative expenses and lower marketing needs as markets mature as factors that could support future earnings growth.
Robins said DraftKings’ primary capital-allocation focus remains organic growth rather than acquisitions. While the company continues to evaluate potential deals, he said it does not currently see a pressing need for acquisitions and believes it has a substantial growth opportunity through its existing businesses.
About DraftKings (NASDAQ:DKNG)DraftKings Inc is a digital sports entertainment and gaming company that operates online sports betting, iGaming and daily fantasy sports platforms. Its products enable customers to place bets on professional and collegiate sports, play online casino games where permitted, and participate in fantasy contests across a range of sports.
The company also offers related services, including retail sportsbooks in select jurisdictions and sports media content through DraftKings Network. Its offerings are available in U.S.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
Should You Invest $1,000 in DraftKings Right Now?Before you consider DraftKings, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and DraftKings wasn't on the list.
While DraftKings currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
Robotics and automation are rapidly becoming essential infrastructure across healthcare, manufacturing, logistics, and many other industries. "Physical AI" is coming. Learn which seven companies are most positioned to benefit as intelligent robots enter the workforce.
Get This Free Report
Continue following MarketBeat
Add MarketBeat as your preferred source on Google to see our latest stories in your feed.
DraftKings přesouvá brokerage, burzu i market-making pro Predictions dovnitř firmy, aby zlepšil ekonomiku jednotky, a míří na dlouhodobou marži adjusted EBITDA alespoň 30 %. V roce 2026 čeká investice do Predictions 200 až 300 milionů USD.
Key Takeaways DraftKings has brought Predictions brokerage, exchange and market-making capabilities in-house.More DKeX volume could let DraftKings retain additional exchange fees and strengthen unit economics.DraftKings expects Predictions investment of $200M-$300M in 2026 as it builds the platform. DraftKings Inc. (DKNG - Free Report) is advancing its vertical integration strategy in Predictions as it works toward a long-term companywide adjusted EBITDA margin target of at least 30%. The strategy centers on bringing key platform capabilities in-house to increase profit generated per customer and strengthen control over product development.
DraftKings launched its DKeX exchange in June 2026 and obtained Futures Commission Merchant approval in July. The company now operates the brokerage, exchange and market-making components of Predictions internally. This structure allows DraftKings to capture more of the economics across the Predictions platform while supporting broader content offerings and improvements to the customer experience.
The approach builds on DraftKings’ experience in Sportsbook, where approximately 95% of sports content is priced and traded in-house. Internal capabilities have enabled the company to retain more value and develop differentiated products. DraftKings expects to apply the same approach to Predictions, using greater product control to improve retention and monetization over time.
The monetization profile could improve further as DraftKings routes more volume through DKeX and retains more exchange fees. The company expects this transition to support unit economics through 2026 and into 2027. Although Predictions is expected to generate lower revenue per customer than Sportsbook, its higher-margin profile could support comparable gross profit per customer over time. Near-term spending remains significant, with $200 million to $300 million of Predictions investment expected in 2026.
DraftKings’ expanding in-house capabilities and established Sportsbook experience could support progress toward its long-term companywide adjusted EBITDA margin target of at least 30%. However, continued investment needs and regulatory uncertainty could influence the pace of improvement. With the company expecting stronger unit economics as more volume moves through DKeX, customer monetization and spending discipline will likely remain key considerations in translating the benefits into margin improvement.
DKNG’s Price Performance, Valuation & EstimatesDraftKings’ shares have declined 12.6% in the past three months compared with the industry’s 9.7% fall. In the same time frame, other industry players like Accel Entertainment, Inc. (ACEL - Free Report) , Boyd Gaming Corporation (BYD - Free Report) and PENN Entertainment, Inc. (PENN - Free Report) have declined 14.7%, 16% and 21.3%, respectively.
DKNG Three-Month Price Performance
Image Source: Zacks Investment Research
DKNG stock is currently trading at a discount. It is currently trading at a forward 12-month price-to-sales (P/S) multiple of 1.46, below the industry average of 1.79. Conversely, industry players, such as Accel Entertainment, PENN Entertainment and Boyd Gaming, have P/S ratios of 0.64, 0.28 and 1.26, respectively.
DKNG’s P/S Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for DraftKings’ 2026 earnings per share has declined in the past 60 days.
EPS Trend of DKNG Stock
Image Source: Zacks Investment Research
The company is likely to report solid earnings, with projections indicating a 50% surge in 2026. Conversely, industry players like Accel Entertainment and PENN Entertainment are likely to witness a rise of 15% and 117.5%, respectively, year over year in 2026 earnings. Meanwhile, BYD’s 2026 earnings are expected to decline 3.1% year over year.
DKNG stock currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Bývalí zaměstnanci tvrdí, že DraftKings pomocí AI cílil promo nabídky na hráče s největšími ztrátami. Firma to odmítá a říká, že nabídky směřuje na aktivní zákazníky, ne na základě jejich ztrát.
Former DraftKings employees say the company sent promotional offers to the very gamblers who were most likely to rack up losses, according to a report.
The sports gambling giant used AI and data science to help determine which customers should receive promotional offers, the New York Times reported, citing whistleblowers.
DraftKings internally used a measure it called “elasticity,” to estimate how much more a gambler might wager if offered the right promos.
“The best investment would be a problem gambler,” former DraftKings data analyst Jayden Butts told the Gray Lady.
DraftKings used data science and machine-learning models to help determine which customers received promotional offers, according to a New York Times investigation. Getty Images The company was trying to figure out if the money it spent on promos like free bets would pay off by getting gamblers to place more wagers, Butts explained.
“And if the answer is yes, open the floodgates,” he told the newspaper.
Six former DraftKings employees who worked on promotional targeting said they later regretted helping build technology they viewed as dangerous.
“It is as predatory as it sounds,” one former DraftKings analyst told the Times.
“If you lose more, we give you more, so you keep playing more.”
A DraftKings spokesperson rejected the report, saying it’s “built on a false premise.”
Former DraftKings employees told the Times they worried promotional targeting tools could sweep in vulnerable gamblers. Bloomberg via Getty Images The piece “portrays routine promotional reinvestment practices common across consumer-facing industries as scandalous,” the spokesperson told The Post.
“And it asks readers to accept, on the word of a few former employees, that DraftKings should not have evolved our development efforts from an unvalidated, early-stage data model to a regulator-informed, evidence-based responsible engagement system.”
The company touted its naming of a “chief responsible gaming officer” who reports directly to the CEO, as well as a department of more than 50 full-time employees “focused on responsible engagement.”
“Responsible engagement is not a side initiative,” the company rep said. “It is embedded across our business and essential to DraftKings’ long-term sustainability.”
The starkest example cited by the Times was that of Bryan Biehl, who told the Times he lost nearly $70,000 gambling online, more than half of it through DraftKings.
Biehl said that when he began therapy for gambling addiction in late 2024, promotional emails from DraftKings became a relapse risk.
“I would get flooded with bonuses and deposits,” he told the Times. “If you are in addiction, you are not going to say no.”
Emails reviewed by the newspaper showed that Biehl received 40 DraftKings promotions during the first two weeks of December 2024.
Former DraftKings data analyst Jayden Butts said the company tested a model designed to predict which gamblers would respond to promotions by betting — and losing — more. Gado via Getty Images He said he gave in to temptation one final time on Christmas Day, before placing himself on self-exclusion lists that blocked him from gambling apps.
DraftKings declined to comment to the Times on Biehl’s account, though it rejected the suggestion that its promotional practices improperly target customers.
The company told the Times that promotions are “directed toward customers who demonstrate sustained, engaged use of our platform, not toward customers based on their losses,” and said it “rejects any implication that its marketing practices are unfair or improperly targets customers.”
Promotions represent a major part of DraftKings’ business.
The company generated around $8.7 billion in gross revenue from sports betting and online casino customers last year while handing out roughly $3 billion in promotions, according to Citizens Bank research cited by the Times.
DraftKings has also publicly touted its use of data science and AI in its promotional strategy.
An executive recently told investors that analytics helped improve margins on promotion-driven sports bets by 13% in 2025 and that the company used AI to personalize hundreds of millions of dollars in promo spending, according to the Times.
“If you lose more, we give you more, so you keep playing more,” one former DraftKings analyst told the Times. Getty Images Meanwhile, employees working on responsible gambling developed separate predictive technology designed to identify customers who might be developing gambling problems.
Former DraftKings data scientist Nestor Hernandez began developing a machine-learning model in mid-2024 that used customer behavior — including deposits, withdrawals and efforts to chase losses — along with age and gender to generate risk scores.
“The idea of this model is to be more proactive instead of being reactive,” he told the Times.
“You will basically predict that a user will be in trouble, let’s say, a few days or a few weeks in advance. And you can act accordingly.”
The project was later shut down, according to former employees cited by the Times.
Lori Kalani, DraftKings’ chief responsible gaming officer, told the Times that company leaders made a “collective decision” not to use predictive technology for problem gambling because “we evaluated that it wasn’t evidence-based.”
She said DraftKings believed its existing system was a “better methodology.”
DraftKings letos klesl o 31,98 % a za poslední rok o 51,15 %, zatímco jeho produkt Predictions zvýšil anualizovaný objem z 2,3 miliardy na 11 miliard USD mezi dubnem a červencem. Ve 2. čtvrtletí ale tržby i upravené EPS zaostaly za odhady.
DraftKings has shed nearly half its value over the past year while quietly building a Predictions product that went from $2.3 billion to $11 billion in annualized volume in just three months. Whether that pivot justifies a major rebound or…
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
DraftKings (NASDAQ:DKNG | DKNG Price Prediction) has been one of 2026’s most disappointing large caps, sliding 31.98% year to date and 51.15% over the past year. With shares at $24.42, bulls are asking whether a 50% rebound is realistic.
Our 24/7 Wall St. price target for DraftKings is $22.56 over the next 12 months, implying -7.69% downside and a hold rating at 90% confidence.
Metric Value Current Price $24.42 24/7 Wall St. Price Target $22.56 Upside/Downside -7.69% Recommendation HOLD Confidence 90% Why We Could Be Wrong Our 24/7 Wall St. price target sits just below the current price, and DraftKings has real optionality. A strong NFL season could reset sportsbook margins, and the Predictions product is growing faster than anticipated with annualized volume traded jumping from $2.3 billion to $11 billion between April and July. Treat our target as one datapoint. A full bull case sits below.
A Rough Year Meets a Predictions Pivot Shares fell 9.11% in the past week and now trade well off the $48.78 52-week high, closer to the $20.46 low. Q2 2026 revenue of $1.44 billion came in missing expectations by 4.48%, and adjusted EPS of $0.09 came in missing expectations against a $0.1917 consensus.
Adjusted EBITDA compressed to $114.60 million from $300.64 million a year earlier as sports outcomes and Predictions launch spend weighed on margins. Management kept FY26 guidance of $6.5 billion to $6.9 billion in revenue and $700 million to $900 million in adjusted EBITDA intact.
Bull Case for $47+ Bulls have a clean story. Robins told investors DraftKings has “an excellent product experience,” and July sportsbook handle was up 20% year over year post World Cup. Customer acquisition costs came in 25% better than anticipated, and more than 600,000 customers have engaged with Predictions year to date.
Wall Street’s average target sits at $34.98, with 24 Buy and 5 Strong Buy ratings. Our own model’s bull case reaches $47.61 in 12 months, roughly 94.85% upside, if Predictions scales into a real second engine and sportsbook margins normalize.
What Could Go Wrong Sportsbook revenue fell 10.6% in Q2, and sports net revenue margin compressed to 6.8% from 8.7%. Sales and marketing surged to $322.54 million.
Bulls would counter that the margin hit reflects customer-friendly outcomes plus a deliberate $200 million to $300 million Predictions investment. Still, the bear scenario in our model prices DKNG at $21.32, roughly -12.76%, if regulatory friction on event contracts intensifies.
How DraftKings Compares to Flutter The cleanest comp is Flutter Entertainment (NYSE:FLUT), which owns FanDuel and competes head-to-head in US sportsbook. Flutter trades at 17x forward earnings against DraftKings at 24x, and its EV/EBITDA of 16 is a fraction of DraftKings’ 119. Flutter’s TTM revenue of $17.16 billion dwarfs DraftKings’ $6.22 billion.
That gap makes our 24/7 Wall St. price target for DKNG look reasonable rather than aggressive: DraftKings already commands a growth premium over the category leader, and further multiple expansion requires proof.
Company Forward P/E EV/EBITDA DraftKings 24 119 Flutter 17 16 DraftKings Price Prediction 2026-2030 My verdict on DraftKings is hold. The 24/7 Wall St. price target of $22.56 at 90% confidence reflects a real disconnect between the current forward EPS profile and today’s price.
I would be a buyer here if Q3 shows sportsbook margin recovery above 7% and Predictions crosses one million active customers. I would stay on the sidelines if promo spend continues climbing without matching handle growth. A 50% rebound is achievable, but only under the bull path.
Year 24/7 Wall St. Price Target 2026 $22.56 2027 $21.84 2028 $21.49 2029 $21.45 2030 $22.17 These projections assume DraftKings continues executing on Predictions and defends sportsbook share. Meaningful upside could arrive from California or Texas legalization, while regulatory action on event contracts could push actual outcomes toward the model’s bear path.
Contact [email protected] for any questions or corrections.
DraftKings ponechal výhled tržeb na 6,5–6,9 mld. USD a upraveného EBITDA na 700–900 mil. USD. Flutter naopak snížil výhled tržeb i EBITDA pro rok 2026.
Key Takeaways DKNG's sportsbook handle rose 11% YoY, while trailing 12-month net revenue per customer increased 14%.DraftKings kept 2026 revenue guidance at $6.5-$6.9B and adjusted EBITDA outlook at $700-$900M.FLUT cut its 2026 revenue and EBITDA outlooks amid taxes, restructuring and regional weakness. The online gaming industry is navigating an increasingly competitive environment as operators balance customer acquisition, promotional spending, product innovation and profitability. Within this environment, DraftKings Inc. (DKNG - Free Report) and Flutter Entertainment plc (FLUT - Free Report) hold leading competitive positions but differ materially in geographic exposure, operating mix and capital-allocation priorities.
DraftKings is leveraging improving customer economics, its nationwide Super App and the expansion of Predictions, while Flutter is relying on FanDuel’s U.S. scale, international diversification and cost-transformation initiatives. With both companies pursuing growth amid regulatory uncertainty and shifting market dynamics, a closer look at their recent performance, strategies and outlook can help determine which stock has stronger prospects ahead.
The Case for DKNGDraftKings continues to demonstrate solid underlying momentum across its sportsbook operations. Second-quarter sportsbook handle increased 11% year over year, while sports consumer volume rose 15%. Monthly unique payers increased 9%, or more than 6% excluding World Cup-only customers. Sportsbook handle share also improved year over year for the third consecutive quarter, pointing to sustained competitive gains.
Customer-acquisition trends were similarly encouraging. Customer acquisition increased nearly 75% year over year, with DraftKings adding roughly 30% more customers than planned. Although acquisition spending exceeded expectations by approximately 10%, customer acquisition costs were about 25% below projections and reached their most efficient level since the first quarter of 2025. Reported revenues declined 4.6% year over year to $1.44 billion. However, revenues increased 10% on a normalized basis after adjusting for sports outcomes and customer-acquisition effects.
Improving monetization further supports the company’s growth profile. Trailing 12-month net revenue per unique customer increased 14% during the first half of 2026, indicating sustained growth in revenues generated from each customer. A continued increase in parlay handle mix also supports the underlying economics of the sportsbook business.
Predictions represents an additional growth opportunity. More than 600,000 customers engaged with the offering year to date, while annualized total volume traded increased nearly fivefold from $2.3 billion in April to $11 billion in July. The launch of DKeX, approval as a Futures Commission Merchant and the development of in-house market-making capabilities should enable DraftKings to capture a larger share of the platform’s economics as activity migrates to its proprietary infrastructure.
Nonetheless, Predictions remains at an early stage, and its long-term return profile has yet to be established. Customer-friendly sports outcomes created an approximately $80 million second-quarter revenue headwind, while the additional spending required to acquire more customers than planned reduced near-term adjusted EBITDA. DraftKings also expects to invest $200-$300 million in Predictions during 2026, with regulatory uncertainty adding another layer of risk.
The Case for FLUTFlutter’s international footprint provides meaningful geographic diversification, although performance across markets remains uneven. International revenues increased 10% in the second quarter, including contributions from the Snai and Betnacional acquisitions. Italy recovered strongly following temporary pressure associated with the Snai migration, while Southern Europe and Africa iGaming revenues rose 34%. These gains were partly offset by lower organic revenues in Brazil, continued weakness in APAC racing and profitability pressure from higher U.K. iGaming taxes.
In the United States, FanDuel is taking steps to strengthen engagement following shortcomings in the execution of its generosity strategy during the previous NFL season. Rewards Club reached 70% of customers, while BetProtect+ and SuperSub enhanced the sportsbook proposition. However, U.S. revenues declined 6% year over year, including a six-percentage-point headwind from customer-friendly sports outcomes. Flutter also estimated that the U.S. sportsbook market grew approximately 5% during the first half and incorporated a broadly similar rate into its second-half assumptions.
FanDuel Predicts offers another potential growth avenue, although first-half progress was slower than planned and the regulatory framework remains unsettled. The One App rollout and Crypto.com integration are expected to strengthen the offering, while market-making activities are projected to contribute approximately $50 million to both revenues and adjusted EBITDA in 2026. However, the absence of separately disclosed customer and volume metrics makes the platform’s early traction difficult to evaluate.
At the consolidated level, Flutter’s revenues increased 3%, and second-quarter performance exceeded internal expectations. Profitability and cash generation, however, remained under pressure. Adjusted EBITDA declined 45%, free cash flow fell 56%, and the company recorded a net loss of $296 million compared with net income of $37 million a year earlier. Leverage ended the quarter at 4.3X, above the medium-term target range of 2-2.5X.
Flutter expects approximately $500 million of transaction, restructuring and integration costs in 2026, including initial efficiency program implementation costs and $95 million of historical tax provisions.
How Do DKNG and FLUT Stack Up on Outlook?DraftKings enters the second half with healthy sportsbook demand, improving customer economics and unchanged full-year guidance. Its core business remains on track to generate approximately $1 billion in adjusted EBITDA in 2026. Including the planned Predictions investment, DraftKings maintained its revenue outlook of $6.5-$6.9 billion and adjusted EBITDA guidance of $700-$900 million.
Flutter plans to increase customer generosity in the United States to strengthen engagement and position FanDuel for potential market-share gains in 2027. Although the investment could benefit the business over time, it will constrain near-term earnings. U.S. adjusted EBITDA is now expected to be approximately breakeven in the third quarter and roughly $500 million in the fourth quarter, down from the previous fourth-quarter expectation of about $700 million.
The midpoint of Flutter’s 2026 revenue outlook was reduced by $395 million to $17.91 billion, while its adjusted EBITDA midpoint was lowered by $210 million to $2.655 billion. The reductions leave Flutter with a less favorable near-term earnings trajectory despite its broader international platform.
The guidance divergence is notable. DraftKings is investing in prediction markets without reducing its consolidated outlook. Flutter, meanwhile, is increasing customer generosity to strengthen U.S. momentum after lowering its full-year expectations. DraftKings, therefore, currently offers greater near-term earnings visibility.
How Does the Zacks Consensus Estimate Compare for DKNG & FLUT?The Zacks Consensus Estimates for DraftKings’ 2026 sales and earnings per share (EPS) suggest year-over-year increases of 11.4% and 56.1%, respectively. In the past 60 days, the consensus EPS estimate for 2026 has declined 7.2%.
DKNG Earnings Estimate Trend
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Flutter’s 2026 sales suggests year-over-year growth of 9.4%, while the EPS estimate indicates a decline of 40.4%. In the past 60 days, the consensus EPS estimate for 2026 has declined 15.8%.
FLUT Earnings Estimate Trend
Image Source: Zacks Investment Research
Price Performance & Valuation of DKNG & FLUTDraftKings’ stock has gained 1.7% in the past six months, outperforming the industry’s fall of 10.9%. Meanwhile, Flutter shares have declined 10.4% over the same period.
DraftKings trades at a forward 12-month P/E multiple of 24.48X, above the industry average of 21.96X. FLUT trades at a lower forward 12-month P/E multiple of 17.21X.
Image Source: Zacks Investment Research
End NotesOverall, DraftKings and Flutter are pursuing growth through sportsbook innovation, customer engagement and prediction-market expansion. DraftKings benefits from healthy betting demand, improving customer economics and rapid Predictions adoption, while Flutter offers FanDuel’s scale, international diversification and a lower valuation.
However, DKNG’s stronger consensus earnings-growth outlook, unchanged guidance and superior recent share-price performance currently give it an edge. DKNG currently carries a Zacks Rank #3 (Hold), while FLUT has a Zacks Rank #5 (Strong Sell), reinforcing DraftKings’ relative advantage in this comparison.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Argus snížil DraftKings na Hold z Buy a stáhl cenový cíl kvůli vysokým nákladům na získávání zákazníků, rostoucím daním a konkurenci. Akcie jsou letos níže o 26,61 %.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
DraftKings (NASDAQ:DKNG | DKNG Price Prediction) has had a rough stretch in 2026. Shares are down 26.61% year to date as of Friday’s close and 43.22% over the past year, trading at $26.17 against a 52-week high of $48.78. Now, Argus has formalized what the price action has been signaling, cutting the stock to Hold from Buy and removing its price target.
Argus cited high customer acquisition costs, rising state gaming taxes and aggressive competition from prediction markets as the primary drivers of the downgrade. The firm also flagged that DraftKings has been losing market share in U.S. Internet gaming, and cut its estimates accordingly.
However, the broader analyst community remains more constructive, with 30 Buy ratings, eight Hold ratings and two Sell ratings and a consensus price target of $34.11, implying meaningful upside from current levels.
The Case Against DKNG Right Now The Argus downgrade lands despite a genuinely strong Q4. DraftKings posted Q4 revenue of nearly $2 billion, up 43% year-over-year, and adjusted EPS of 36 cents, doubling the 18-cent consensus estimate. Full-year 2025 marked the company’s first-ever GAAP net profit.
But the concern is forward-looking: The company is making a large bet on DraftKings Predictions, its federally regulated event contracts platform, and that investment carries real near-term cost.
Management acknowledged the spend will run into “tens of millions” in incremental costs, covering new headcount, technology buildout and customer acquisition. CEO Jason Robins was direct about the competitive stakes: “Speed and execution, combined with a strong brand, smooth interface and real sports modeling, trading and technology expertise will determine long-term leadership.” That confidence may be warranted, but it does not eliminate the execution risk.
Key Risks to Monitor The tax environment is the most unpredictable variable. DraftKings’ 2026 guidance of $6.5 billion to $6.9 billion in revenue and $700 million to $900 million in adjusted EBITDA explicitly assumes state tax rates hold steady. Any increases in states like New Jersey, Illinois or Louisiana could compress margins meaningfully. Robins acknowledged the pressure but expressed optimism: “States would be absolutely crazy right now to raise OSB taxes with everything going on with Predictions.”
Short interest has also climbed, with DKNG short interest at 8.03% of float, up 7.79% since the last report and above the peer average of 6.98%. The average analyst price target has declined from $44.58 to $38.80 over recent months, reflecting a broader reassessment of the growth timeline.
The core business fundamentals remain intact. But with Argus stepping to the sidelines, rising costs ahead, and tax uncertainty unresolved — factors the broader analyst community will likely continue to weigh.
Contact [email protected] for any questions or corrections.
DraftKings uvedl, že jeho predikční produkt už využilo přes 600 000 zákazníků a objem obchodů za rok mezi dubnem a červencem vzrostl z 2,3 miliardy na 11 miliard USD. Firma zároveň potvrdila celoroční výhled tržeb v rozmezí 6,5 až 6,9 miliardy USD.
More than 600,000 DraftKings customers have used its predictions product, while annualized trading volume rose from $2.3 billion to $11 billion between April and July.
DraftKings sees only about 1% customer overlap with the largest prediction market operator in sportsbook states and estimated 80% to 90% of prediction volume there comes from professional or institutional-style traders.
The company now controls brokerage, exchange and market-making capabilities, giving it a path to capture more fees, improve customer lifetime value and replicate the vertical-integration strategy that strengthened its sportsbook business.
DraftKings is positioning itself not simply as a sportsbook operator, but as a nationwide sports commerce platform capable of acquiring, engaging and monetizing customers across multiple products.
As company executives stressed to investors during a second-quarter 2026 earnings call Friday (Aug. 7), prediction markets are becoming central to that ambition.
“We delivered a strong second quarter and enter the back half of the year with real momentum, as our core business grew across handle, users and engagement,” DraftKings Co-Founder and CEO Jason Robins said in a Friday press release. “Our super app is now live nationwide, and Predictions is already growing faster than we anticipated. The similarity of Predictions customer metrics to Sportsbook customer metrics, our advantaged LTV position and our playbook to innovate on a leading Predictions offering all underpin our confidence that we can win the category.”
DraftKings generated $115 million in adjusted EBITDA for the second quarter, while customer-friendly sports outcomes created an approximately $80 million revenue headwind. Management nevertheless maintained its full-year revenue guidance of $6.5 billion to $6.9 billion and adjusted EBITDA guidance of $700 million to $900 million. Its core business remains on track to generate roughly $1 billion in adjusted EBITDA this year.
See also: How Uncertainty Became the Engagement Engine of the Digital Economy
DraftKings Is Turning the Sportsbook Into a Super App DraftKings said customer acquisition increased nearly 75% year over year during the second quarter, helped by the NBA Finals and World Cup. The company acquired roughly 30% more customers than expected while spending only about 10% more than planned, with acquisition costs coming in approximately 25% better than anticipated.
Some of those customers are coming from markets DraftKings historically could not reach through regulated sports betting. Its prediction product is now available nationally through the broader DraftKings Sports app. More than 600,000 customers have used predictions this year, and management said adoption has exceeded expectations. Annualized trading volume increased from $2.3 billion to $11 billion between April and July.
That changes the geographic logic of DraftKings’ business. Instead of waiting for large states such as California and Texas to legalize online sports betting, DraftKings can establish customer relationships there through prediction markets today. Robins said consumers in states without legal sportsbooks are showing profiles similar to sportsbook customers elsewhere.
Management said it sees only about 1% customer overlap between its sportsbook users and customers of the largest prediction market operator in states where online sports betting is already legal. DraftKings also estimates that 80% to 90% of prediction market volume in those jurisdictions comes from professional syndicates and institutional-style traders who were largely not sportsbook customers in the first place.
Early customer economics are reinforcing the thesis. DraftKings said prediction customers are being acquired for materially less than sportsbook customers while showing comparable early retention and volume characteristics. More than half have used “combos,” the prediction market equivalent of packaging multiple outcomes together, and the feature is approaching 20% of prediction volume.
Owning More of the Gaming Economics Comes Down to Infrastructure, Not Acquisition DraftKings now operates across three layers of the prediction market stack, including brokerage, exchange and market making. Management said owning those functions allows it to capture economics that would otherwise flow to third parties while giving the company greater control over products, pricing and customer experience.
The company plans to move much of its major sports prediction volume onto its own exchange, DKeX, beginning around the college football and NFL seasons. As more activity moves internally, management said it expects unit economics to improve, potentially creating a multiyear margin tailwind.
The sportsbook remains the engine. DraftKings is now trying to build an ecosystem around it.
The PYMNTS Intelligence report “Banking Both Sides: Instant Payouts Turn Receivers Into Customers” found that gig, creator and marketplace platforms are the most aggressive adopters of instant payouts in absolute terms, with nearly one-third of senders offering instant payouts always or most of the time.
For all PYMNTS digital transformation coverage, subscribe to the daily Digital Transformation Newsletter.
DraftKings ve 2. čtvrtletí zvýšil Sports Consumer Volume na 13,1 mld. USD, ale tržby klesly o 5 % na 1,443 mld. USD. Firma zároveň potvrdila celoroční výhled tržeb v rozmezí 6,5 až 6,9 mld. USD.
BOSTON--(BUSINESS WIRE)--DraftKings Inc. (Nasdaq: DKNG) (“DraftKings” or the “Company”) today announced its second quarter 2026 financial results. The Company also posted a second quarter 2026 business update and a slide presentation on the Financials section of its website at ir.aboutdraftkings.com.
Second Quarter 2026 Highlights
For the three months ended June 30, 2026, DraftKings reported Sports Consumer Volume of $13.1 billion, an increase of $1.7 billion, or 15%, compared to $11.5 billion during the same period in 2025. The increase reflects strong customer acquisition and engagement. DraftKings reported revenue of $1,443 million, a decrease of $69 million, or 5%, compared to $1,513 million during the same period in 2025. The decrease in the Company's second quarter 2026 revenue was driven primarily by customer-friendly sport outcomes and increased promotional reinvestment associated with new customer acquisition on our Sportsbook and Predictions offerings.
“We delivered a strong second quarter and enter the back half of the year with real momentum, as our core business grew across handle, users, and engagement,” said Jason Robins, DraftKings' Chief Executive Officer and Co-founder. “Our Super App is now live nationwide, and Predictions is already growing faster than we anticipated. The similarity of Predictions customer metrics to Sportsbook customer metrics, our advantaged LTV position, and our playbook to innovate on a leading Predictions offering all underpin our confidence that we can win the category this NFL season and beyond.”
“Our core business remains on track to generate approximately $1 billion of Adjusted EBITDA this year, providing us with financial flexibility to invest behind the significant opportunity that we are seeing in Predictions,” said Alan Ellingson, DraftKings’ Chief Financial Officer. “Therefore, we are maintaining our fiscal year 2026 guidance for revenue of $6.5 billion to $6.9 billion and Adjusted EBITDA of $700 million to $900 million.”
Continued Strong Customer Acquisition, Retention, and Engagement
Monthly Unique Payers (“MUPs”) increased approximately 9% to 3.6 million in the three months ended June 30, 2026, compared to the three months ended June 30, 2025. This increase reflects strong unique payer retention and new customer acquisition across our Sportsbook offering and Predictions offering, which launched in December 2025. Average Revenue per MUP (“ARPMUP”) decreased approximately 13%, or $19, to $132 for the three months ended June 30, 2026, compared to the three months ended June 30, 2025, primarily due to customer-friendly sport outcomes and new customer promotions impacting revenue across our Sportsbook offering and Predictions offering. Detailed financial data and other information for the second quarter of 2026 is available in the financial statements set forth below under the caption “Financial and Operational Results.” Fiscal Year 2026 Guidance
DraftKings is maintaining its fiscal year 2026 revenue guidance range of $6.5 billion to $6.9 billion and fiscal year 2026 Adjusted EBITDA guidance range of $700 million to $900 million, which the Company previously announced on May 7, 2026. Mobile Sports Betting and iGaming Footprint
DraftKings is live with mobile sports betting in 27 states, Washington, D.C., and Puerto Rico representing approximately 53% of the U.S. population. DraftKings is also live with iGaming in 5 states, representing approximately 11% of the U.S. population. Following the launch of our Sportsbook and iGaming offerings in Alberta, Canada, DraftKings is now live with its Sportsbook and iGaming offerings in provinces representing approximately 51% of the Canadian population. Webcast and Conference Call Details
As previously announced, DraftKings will host a conference call and audio webcast tomorrow, Friday, August 7, 2026, from 8:30 a.m. to 9:15 a.m. ET, during which management will discuss the Company’s results and provide commentary on business performance. A question-and-answer session will follow the prepared remarks.
To listen to the audio webcast and live question and answer session, please visit DraftKings’ Financials section of its website at ir.aboutdraftkings.com. A live audio webcast of the earnings conference call will be available on the Company’s website at ir.aboutdraftkings.com, along with a copy of this earnings press release, the Company’s Quarterly Report on Form 10-Q, a second quarter 2026 business update and a slide presentation. The audio webcast will be available on the Company’s investor relations website until 11:59 p.m. ET on September 30, 2026.
Financial and Operational Results
DraftKings’ second quarter 2026 financial results, as well as the financial results for each comparative period, and certain operational results are presented below:
DRAFTKINGS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except par value)
June 30, 2026
(Unaudited)
December 31, 2025
Assets
Current assets:
Cash and cash equivalents
$
983,882
$
1,127,545
Restricted cash
8,596
7,601
Cash reserved for users
395,030
469,449
Accounts receivable
82,079
105,577
Prepaid expenses and other current assets
107,436
104,837
Total current assets
1,577,023
1,815,009
Property and equipment, net
52,726
51,081
Intangible assets, net
837,441
889,201
Goodwill
1,597,647
1,597,647
Operating lease right-of-use assets
76,760
49,810
Equity method investments
30,312
18,938
Deposits and other non-current assets
105,470
109,098
Total assets
$
4,277,379
$
4,530,784
Liabilities and Stockholders’ equity
Current liabilities:
Accounts payable and accrued expenses
$
689,247
$
785,441
Liabilities to users
840,261
935,001
Operating lease liabilities, current portion
9,735
9,795
Other current liabilities
11,445
25,234
Total current liabilities
1,550,688
1,755,471
Convertible notes, net of issuance costs
1,260,421
1,259,096
Term B Loan, net of issuance costs
574,574
576,544
Operating lease liabilities
71,279
44,391
Long-term income tax liabilities
100,959
91,618
Other long-term liabilities
150,030
172,203
Total liabilities
$
3,707,951
$
3,899,323
Stockholders’ equity:
Class A common stock, $0.0001 par value; 900,000 shares authorized as of June 30, 2026 and December 31, 2025; 541,503 and 533,296 shares issued and 495,978 and 495,053 outstanding as of June 30, 2026 and December 31, 2025, respectively
$
53
$
52
Class B common stock, $0.0001 par value; 900,000 shares authorized as of June 30, 2026 and December 31, 2025; 393,014 shares issued and outstanding as of June 30, 2026 and December 31, 2025
39
39
Treasury stock, at cost; 45,525 and 38,243 shares as of June 30, 2026 and December 31, 2025, respectively
(1,590,131
)
(1,392,433
)
Additional paid-in capital
8,607,037
8,424,833
Accumulated deficit
(6,484,058
)
(6,437,518
)
Accumulated other comprehensive income
36,488
36,488
Total stockholders’ equity
$
569,428
$
631,461
Total liabilities and stockholders’ equity
$
4,277,379
$
4,530,784
DRAFTKINGS INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Amounts in thousands, except per share data)
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
Revenue
$
1,443,235
$
1,512,507
$
3,089,311
$
2,921,313
Cost of revenue
891,782
854,559
1,841,167
1,698,362
Sales and marketing
322,536
233,187
724,270
576,867
Product and technology
127,649
108,417
250,825
211,677
General and administrative
169,442
165,700
335,376
330,094
Income (loss) from operations
(68,174
)
150,644
(62,327
)
104,313
Other income (expense):
Interest income (expense), net
(7,434
)
665
(13,173
)
5,060
Gain (loss) on remeasurement of warrant liabilities
—
(5,851
)
—
(3,356
)
Other gain (loss), net
3,750
24,459
26,564
24,481
Income (loss) before income tax and equity method investments
(71,858
)
169,917
(48,936
)
130,498
Income tax provision (benefit)
(1,797
)
11,790
4,572
6,190
(Gain) loss from equity method investments
(2,451
)
191
(6,968
)
236
Net income (loss) attributable to common stockholders
$
(67,610
)
$
157,936
$
(46,540
)
$
124,072
Earnings (loss) per share attributable to common stockholders:
Basic
$
(0.14
)
$
0.32
$
(0.09
)
$
0.25
Diluted
$
(0.14
)
$
0.30
$
(0.09
)
$
0.23
DRAFTKINGS INC.
NON-GAAP FINANCIAL MEASURES
(Unaudited)
(Amounts in thousands, except per share data)
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
Adjusted EBITDA
$
114,597
$
300,644
$
282,450
$
403,273
Adjusted Diluted Earnings (Loss) Per Share
$
0.09
$
0.38
$
0.29
$
0.50
DRAFTKINGS INC.
REVENUE DISAGGREGATION
(Unaudited)
(Amounts in thousands, except percentages)
Three Months Ended June 30,
(amounts in thousands)
2026
2025
$ Change
% Change
Sports Consumer Volume
$
13,140,417
$
11,474,841
$
1,665,576
14.5
%
Sports Revenue
891,883
997,872
(105,989
)
(10.6
)%
Sports Net Revenue Margin
6.8
%
8.7
%
N/A
N/A
Sports Revenue
$
891,883
$
997,872
$
(105,989
)
(10.6
)%
iGaming Revenue
461,930
429,660
32,270
7.5
%
Other Revenue
89,422
84,975
4,447
5.2
%
Total Revenue
$
1,443,235
$
1,512,507
$
(69,272
)
(4.6
)%
Six Months Ended June 30,
(amounts in thousands)
2026
2025
$ Change
% Change
Sports Consumer Volume
$
27,342,115
$
25,355,232
$
1,986,883
7.8
%
Sports Revenue
1,986,436
1,879,829
106,607
5.7
%
Sports Net Revenue Margin
7.3
%
7.4
%
N/A
N/A
Sports Revenue
$
1,986,436
$
1,879,829
$
106,607
5.7
%
iGaming Revenue
923,230
853,131
70,099
8.2
%
Other Revenue
179,645
188,353
(8,708
)
(4.6
)%
Total Revenue
$
3,089,311
$
2,921,313
$
167,998
5.8
%
Sports Revenue. We define Sports Revenue as the total amount of online sportsbook, retail sportsbook, and Prediction Markets revenue.
Sports Consumer Volume. We define Sports Consumer Volume as the total amount of settled customer wagers or trades on our Sportsbook and Prediction Markets offerings.
Sports Net Revenue Margin. We define Sports Net Revenue Margin as Sports revenue as a percentage of Sports Consumer Volume.
DRAFTKINGS INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Amounts in thousands)
Six Months Ended June 30,
2026
2025
Cash Flows from Operating Activities:
Net income (loss) attributable to common stockholders
$
(46,540
)
$
124,072
Adjustments to reconcile net income (loss) to net cash flows provided by (used in) operating activities:
Depreciation and amortization
152,003
135,415
Non-cash interest (income) expense, net
2,451
939
Stock-based compensation
147,769
163,547
(Gain) loss on remeasurement of warrant liabilities
—
3,356
(Gain) loss from equity method investments
(6,968
)
236
Deferred income taxes
(215
)
96
Other non-cash (gain) loss, net
(26,303
)
(16,422
)
Change in operating assets and liabilities, net of effect of acquisitions:
Accounts receivable
23,498
(11,111
)
Prepaid expenses and other current assets
(4,009
)
(7,625
)
Deposits and other non-current assets
2,220
2,759
Accounts payable and accrued expenses
(95,746
)
(98,441
)
Liabilities to users
(94,740
)
(254,484
)
Long-term income tax liability
9,341
7,953
Other long-term liabilities
240
4,615
Net cash flows provided by (used in) operating activities
$
63,001
$
54,905
Cash Flows from Investing Activities:
Purchases of property and equipment
$
(11,671
)
$
(6,963
)
Cash paid for internally developed software costs
(75,064
)
(60,414
)
Cash paid for gaming market access and licenses
(1,992
)
(2,234
)
Other investing activities
(4,717
)
(4,667
)
Net cash flows provided by (used in) investing activities
$
(93,444
)
$
(74,278
)
Cash Flows from Financing Activities:
Proceeds from Term B Loan, net
$
—
$
588,116
Repayment of Term B Loan principal
(3,000
)
(1,500
)
Purchase of treasury stock for RSU withholding
(43,480
)
(101,852
)
Purchase of treasury stock under Stock Repurchase Program
(154,218
)
(242,741
)
Proceeds from exercise of stock options
4,067
6,304
Proceeds from shares issued under Employee Stock Purchase Plan
9,987
6,900
Other financing activities
—
(2,093
)
Net cash flows provided by (used in) financing activities
$
(186,644
)
$
253,134
Net increase (decrease) in cash and cash equivalents, restricted cash, and cash reserved for users
(217,087
)
233,761
Cash and cash equivalents, restricted cash, and cash reserved for users at the beginning of period
1,604,595
1,330,193
Cash and cash equivalents, restricted cash, and cash reserved for users at the end of period
$
1,387,508
$
1,563,954
Disclosure of cash and cash equivalents, restricted cash, and cash reserved for users
Cash and cash equivalents
$
983,882
$
1,261,969
Restricted cash
8,596
4,616
Cash reserved for users
395,030
297,369
Cash and cash equivalents, restricted cash, and cash reserved for users at the end of period
$
1,387,508
$
1,563,954
Supplemental Disclosure of Noncash Investing and Financing Activities:
Decrease in warrant liabilities from cashless exercise of warrants
$
—
$
11,185
Shares issued for contingent consideration
9,420
4,962
Stock-based compensation capitalized to internally developed software costs
13,553
11,955
Supplemental Disclosure of Cash Activities:
(Decrease) increase in cash reserved for users
$
(74,419
)
$
(228,038
)
Cash paid for interest
17,624
9,421
Cash paid for income taxes, net of refunds
2,440
8,186
Non-GAAP Financial Measures
This press release includes Adjusted EBITDA and Adjusted Diluted Earnings (Loss) Per Share, which are non-GAAP financial measures that DraftKings uses to supplement its results presented in accordance with U.S. generally accepted accounting principles (“GAAP”). The Company believes Adjusted EBITDA and Adjusted Diluted Earnings (Loss) Per Share are useful in evaluating its operating performance, similar to measures reported by its publicly-listed U.S. competitors, and regularly used by security analysts, institutional investors and other interested parties in analyzing operating performance and prospects. Adjusted EBITDA and Adjusted Diluted Earnings (Loss) Per Share are not intended to be substitutes for any GAAP financial measures, and, as calculated, may not be comparable to other similarly titled measures of performance of other companies in other industries or within the same industry.
DraftKings defines and calculates Adjusted EBITDA as net income (loss) before the impact of interest income or expense (net), income tax provision or benefit, and depreciation and amortization, and further adjusted for the following items: stock-based compensation; transaction-related costs; litigation, settlement and related costs; advocacy and other related legal expenses; gain or loss on remeasurement of warrant liabilities; and other non-recurring and non-operating costs or income, as described in the reconciliation below.
DraftKings defines and calculates Adjusted Diluted Earnings (Loss) Per Share as diluted earnings (loss) per share attributable to common stockholders adjusted for the impact of amortization of acquired intangible assets; discrete tax benefits attributed to acquisitions; stock-based compensation; transaction-related costs; litigation, settlement and related costs; advocacy and other related legal expenses; gain or loss on remeasurement of warrant liabilities; other non-recurring and non-operating costs or income; and the tax impact of adjusting items, as described in the reconciliation below. The weighted-average shares outstanding used in the calculation of diluted earnings (loss) per share are the GAAP weighted-average diluted shares reported in the consolidated financial statements and are not adjusted.
DraftKings includes these non-GAAP financial measures because they are used by management to evaluate the Company’s core operating performance and trends and to make decisions regarding the allocation of capital and new investments. Adjusted EBITDA and Adjusted Diluted Earnings (Loss) Per Share exclude certain expenses that are required in accordance with GAAP because they are non-recurring items (for example, in the case of transaction-related costs and advocacy and other related legal expenses), non-cash expenditures (for example, in the case of depreciation and amortization, remeasurement of warrant liabilities and stock-based compensation), or non-operating items which are not related to the Company’s underlying business performance (for example, in the case of interest income and expense and litigation, settlement and related costs).
The unaudited table below presents the Company’s Adjusted EBITDA reconciled to its net income (loss), which is the most directly comparable financial measure calculated in accordance with GAAP, for the periods indicated:
Three Months Ended June 30,
Six Months Ended June 30,
(amounts in thousands)
2026
2025
2026
2025
Net income (loss)
$
(67,610
)
$
157,936
$
(46,540
)
$
124,072
Adjusted for:
Depreciation and amortization (1)
80,342
65,299
152,003
135,415
Interest (income) expense, net
7,434
(665
)
13,173
(5,060
)
Income tax (benefit) provision
(1,797
)
11,790
4,572
6,190
Stock-based compensation (2)
82,554
84,701
147,769
163,547
Transaction-related costs (3)
—
—
—
—
Litigation, settlement, and related costs (4)
—
—
—
—
Advocacy and other related legal expenses (5)
19,875
—
46,238
—
Loss (gain) on remeasurement of warrant liabilities
—
5,851
—
3,356
Other non-recurring costs and non-operating costs (income) (6)
(6,201
)
(24,268
)
(34,765
)
(24,247
)
Adjusted EBITDA
$
114,597
$
300,644
$
282,450
$
403,273
(1)
The amounts include the amortization of acquired intangible assets of $37.6 million and $36.4 million for the three months ended June 30, 2026 and 2025, respectively, and $75.1 million and $79.1 million for the six months ended June 30, 2026 and 2025, respectively. (2)
Reflects stock-based compensation expenses resulting from the issuance of awards under incentive plans. (3)
Includes capital markets advisory, consulting, accounting and legal expenses related to the evaluation, negotiation, and consummation of transactions and offerings that are under consideration, pending, or completed, as well as integration costs related to acquisitions. (4)
Primarily includes external legal costs related to litigation and litigation settlement costs deemed unrelated to our ordinary-course business operations. (5)
Reflects non-recurring and non-ordinary course costs relating to advocacy efforts primarily in pursuit of legalization of DraftKings offerings. For the three and six months ended June 30, 2026, this spend primarily relates to legislative efforts for legalizing iGaming, supporting a ballot measure for legalizing Sportsbook, and other advocacy activities related to certain states. Advocacy and legal expenses incurred in the ordinary course of business have not been adjusted in this measure. (6)
Primarily includes the change in fair value of certain assets and liabilities, including contingent consideration, as well as our equity method share of investee’s gains and losses and other costs relating to non-recurring and non-operating items. The unaudited table below presents the Company’s Adjusted Diluted Earnings (Loss) Per Share reconciled to its diluted earnings (loss) per share attributable to common stockholders, which is the most directly comparable financial measure calculated in accordance with GAAP, for the periods indicated:
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
Diluted earnings (loss) per share attributable to common stockholders
$
(0.14
)
$
0.30
$
(0.09
)
$
0.23
Adjusted for:
Amortization of acquired intangible assets (1)
0.08
0.07
0.15
0.15
Stock-based compensation (2)
0.17
0.16
0.30
0.31
Transaction-related costs (3)
—
—
—
—
Litigation, settlement, and related costs (4)
—
—
—
—
Advocacy and other related legal expenses (5)
0.04
—
0.09
—
Loss (gain) on remeasurement of warrant liabilities
—
0.00
—
0.00
Other non-recurring and non-operating costs (income)
(0.01
)
(0.04
)
(0.05
)
(0.04
)
Tax impact of adjusting items (6)
(0.05
)
(0.11
)
(0.10
)
(0.16
)
Adjusted Diluted Earnings (Loss) Per Share*
$
0.09
$
0.38
$
0.29
$
0.50
*
Weighted average diluted number of shares used to calculate Adjusted Diluted Earnings (Loss) Per Share for the three months ended June 30, 2026 and 2025 was 496.1 million and 529.5 million, respectively, and for the six months ended June 30, 2026 and 2025 was 495.2 million and 529.6 million, respectively; totals may not add due to rounding. (1)
The amounts include the amortization of acquired intangible assets of $37.6 million and $36.4 million for the three months ended June 30, 2026 and 2025, respectively, and $75.1 million and $79.1 million for the six months ended June 30, 2026 and 2025, respectively. (2)
Reflects stock-based compensation expenses resulting from the issuance of awards under incentive plans. (3)
Includes capital markets advisory, consulting, accounting and legal expenses related to the evaluation, negotiation, and consummation of transactions and offerings that are under consideration, pending, or completed, as well as integration costs related to acquisitions. (4)
Primarily includes external legal costs related to litigation and litigation settlement costs deemed unrelated to our ordinary-course business operations. (5)
Reflects non-recurring and non-ordinary course costs relating to advocacy efforts primarily in pursuit of legalization of DraftKings offerings. For the three and six months ended June 30, 2026, this spend primarily relates to legislative efforts for legalizing iGaming, supporting a ballot measure for legalizing Sportsbook, and other advocacy activities related to certain states. Advocacy and legal expenses incurred in the ordinary course of business have not been adjusted in this measure. (6)
Beginning in the first quarter of 2025, the Company began applying an estimated non-GAAP effective tax rate, which was 23% in 2025 and is 28% as of the second quarter of 2026. The non-GAAP effective tax rate reflects the non-GAAP tax provision commensurate with the Company's level of non-GAAP profitability, which was determined after adjusting for the non-GAAP adjustments presented above and excluding the impact of changes in the valuation allowance. Information reconciling forward-looking fiscal year 2026 Adjusted EBITDA guidance to its most directly comparable GAAP financial measure, net income (loss), is unavailable to DraftKings without unreasonable effort due to, among other things, certain items required for such reconciliation being outside of DraftKings’ control and/or not being able to be reasonably predicted. Preparation of such reconciliation would require a forward-looking balance sheet, statement of income, and statement of cash flow, prepared in accordance with GAAP, and such forward-looking financial statements are unavailable to the Company without unreasonable effort. DraftKings provides a range for its Adjusted EBITDA forecast that it believes will be achieved; however, the Company cannot provide any assurance that it can predict all of the components of the Adjusted EBITDA calculation. DraftKings provides a forecast for Adjusted EBITDA because it believes that Adjusted EBITDA, when viewed with DraftKings’ results calculated in accordance with GAAP, provides useful information for the reasons noted above. However, Adjusted EBITDA is not a measure of financial performance or liquidity under GAAP and, accordingly, should not be considered as an alternative to net income (loss) or cash flow from operating activities or as an indicator of operating performance or liquidity.
About DraftKings
DraftKings Inc. is a digital sports and gaming company created to be the Ultimate Host and fuel the competitive spirit of sports fans with platforms that range across daily fantasy, regulated gaming, prediction markets and digital media. Headquartered in Boston and launched in 2012 by Jason Robins, Matt Kalish and Paul Liberman, DraftKings is the only U.S.-based vertically integrated sports betting operator. DraftKings’ mission is to make life more exciting by responsibly creating the world’s favorite real-money games, betting experiences and event contracts trading. DraftKings Sportsbook is live with mobile and/or retail sports betting operations pursuant to regulations in 30 states, Washington, D.C., Puerto Rico, and Alberta and Ontario, Canada. The Company operates iGaming pursuant to regulations in five states and in Alberta and Ontario, Canada under its DraftKings brand and pursuant to regulations in four states and in Ontario, Canada, under its Golden Nugget Online Gaming brand. DraftKings also owns Jackpocket, the leading digital lottery courier app in the United States. DraftKings’ daily fantasy sports platform is available in 44 states, Washington, D.C., and certain Canadian provinces. DraftKings' wholly-owned subsidiary GUS III LLC (d/b/a DraftKings Predictions) also operates DraftKings Predictions, offering federally regulated event contracts under CFTC oversight. DraftKings is both an official sports betting and daily fantasy partner of the NHL, PGA TOUR and WNBA, as well as an official daily fantasy partner of NASCAR, an official sports betting partner of the NBA and an authorized gaming operator of MLB. In addition, DraftKings owns and operates DraftKings Network, a multi-platform content ecosystem. DraftKings is committed to delivering responsible engagement tools and resources, while focusing on integrity and customer education.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, including statements about the Company and its industry that involve substantial risks and uncertainties. All statements, other than statements of historical fact, contained in this press release, including statements regarding guidance, DraftKings’ future results of operations or financial condition, strategic plans and focus, customer growth and engagement, offering initiatives, and the objectives and expectations of management for future operations (including launches in new jurisdictions and the expected timing thereof), are forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as “anticipate,” “believe,” “confident,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “forecast,” “going to,” “intend,” “may,” “plan,” “poised,” “potential,” “predict,” “project,” “propose,” “should,” “target,” “will,” or “would” or the negative of these words or other similar terms or expressions, or by statements of vision, strategy or outlook. DraftKings cautions you that the foregoing may not include all of the forward-looking statements made in this press release.
You should not rely on forward-looking statements as predictions of future events. DraftKings has based the forward-looking statements contained in this press release primarily on its current expectations and projections about future events and trends, including the current macroeconomic environment, that it believes may affect its business, financial condition, results of operations, and prospects. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside DraftKings’ control and that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Important factors, among others, that may affect actual results or outcomes include, but are not limited to, DraftKings’ ability to manage growth; DraftKings’ ability to execute its business plan and meet its projections, including growth and execution in the emerging prediction markets category; potential litigation involving DraftKings; changes in applicable laws or regulations, particularly with respect to gaming and the regulatory status of prediction markets and event contracts; general economic and market conditions impacting demand for DraftKings’ offerings and services; economic and market conditions in the media, gaming, and software industries in the markets in which DraftKings operates; market and global conditions and economic factors, as well as the potential impact of general economic conditions, and the potential impact of new and existing laws, regulations, or policies, including those relating to tariffs, import/export, or trade restrictions, inflation, rising interest rates and instability in the banking system, on DraftKings’ liquidity, operations and personnel, as well as the risks, uncertainties, and other factors described in “Risk Factors” in DraftKings’ filings with the Securities and Exchange Commission (the “SEC”), which are available on the SEC’s website at www.sec.gov. Additional information will be made available in other filings that DraftKings makes from time to time with the SEC. The forward-looking statements contained herein are based on management’s current expectations and beliefs and speak only as of the date hereof, and DraftKings makes no commitment to update or publicly release any revisions to forward-looking statements in order to reflect new information or subsequent events, circumstances or changes in expectations, except as required by law.
DraftKings spustí 13. července v Albertě online sázky a kasino, čímž rozšíří svou přítomnost v Kanadě na druhou provincii. Současně tam nabídne i značku Golden Nugget Online Gaming.
BOSTON--(BUSINESS WIRE)--DraftKings Inc. (Nasdaq: DKNG) today announced plans to launch its top-rated online sportsbook and casino, along with its Golden Nugget Online Gaming brand, in Alberta on July 13. Alberta will become the second Canadian province and the 34th jurisdiction across North America where DraftKings Sportsbook is available. With the launch, DraftKings Casino will be available in five U.S. states and Golden Nugget Online Gaming casino in four U.S. states, with both brands available in Alberta and Ontario in Canada.
Ahead of the official launch, DraftKings will host a watch party for the World Cup on July 11 at the Wildhorse Saloon in Calgary. The event is part of DraftKings' broader initiative that has brought fans across North America closer to the excitement of the tournament through a series of watch parties in Los Angeles, Dallas, Miami and Hoboken. Each event has featured live match viewing, giveaways and interactive activations designed to create memorable fan experiences.
“We’re thrilled to launch DraftKings Sportsbook and DraftKings Casino, as well as Golden Nugget Online Gaming in Alberta and continue expanding our presence in Canada,” said Greg Karamitis, Executive Vice President and General Manager of Sports at DraftKings. “Alberta is home to a passionate sports fan base, and we’re excited to bring customers across the province our industry-leading sports betting and online casino experiences. Launching during one of the biggest moments in global sports, with the World Cup taking place across North America, makes this an especially exciting time to welcome Albertans to DraftKings.”
To celebrate the launch in Alberta, DraftKings employees will volunteer with Food Banks Alberta and present a $150,000 donation to the organization. The funding will purchase over 40,000 pounds of essential food items to be distributed through Food Banks Alberta's network of member food banks, ensuring resources reach communities both large and small throughout Alberta. This donation will help provide essential food support, including high demand items like fruits and vegetables and baby formula to individuals and families facing hunger, while strengthening local food banks' ability to meet growing demand.
Eligible customers in Alberta will have access to DraftKings’ comprehensive suite of sports betting and online casino offerings. From same-game parlays, live in-game wagering, and special odds boosts on DraftKings Sportsbook to thousands of casino games, including fan-favorite titles like “Wheel of Fortune – Triple Extreme Spin,” exclusive slot titles, as well as progressive jackpots across Golden Nugget Online Gaming and DraftKings Casino, DraftKings delivers one of the industry’s most robust and engaging entertainment experiences.
DraftKings leads the industry in responsible engagement by promoting customer awareness and use of budget and control tools and resources like deposit limits, cool off periods, and self-exclusion to help customers have a fun source of entertainment with a brand they can trust.
The DraftKings Sports and Casino app and Golden Nugget Online Gaming casino app are available to be downloaded today for iOS and Android here and here. Customers can review DraftKings’ Responsible Engagement tools here. For additional problem gambling support or services, Alberta customers can visit GameSense or ABiGaming.ca, or contact the GameSense Info Line at 1-833-447-7523.
About DraftKings
DraftKings Inc. is a digital sports and gaming company created to be the Ultimate Host and fuel the competitive spirit of sports fans with platforms that range across daily fantasy, regulated gaming, prediction markets and digital media. Headquartered in Boston and launched in 2012 by Jason Robins, Matt Kalish and Paul Liberman, DraftKings is the only U.S.-based vertically integrated sports betting operator. DraftKings’ mission is to make life more exciting by responsibly creating the world’s favorite real-money games, betting experiences and event contracts trading. DraftKings Sportsbook is live with mobile and/or retail sports betting operations pursuant to regulations in 30 states, Washington, D.C., Puerto Rico, and Ontario, Canada. The Company operates iGaming pursuant to regulations in five states and in Ontario, Canada under its DraftKings brand and pursuant to regulations in four states and in Ontario, Canada, under its Golden Nugget Online Gaming brand. DraftKings also owns Jackpocket, the leading digital lottery courier app in the United States. DraftKings’ daily fantasy sports platform is available in 44 states, Washington, D.C., and certain Canadian provinces. DraftKings' wholly-owned subsidiary GUS III LLC (d/b/a DraftKings Predictions) also operates DraftKings Predictions, offering federally regulated event contracts under CFTC oversight. DraftKings is both an official sports betting and daily fantasy partner of the NHL, PGA TOUR and WNBA, as well as an official daily fantasy partner of NASCAR, an official sports betting partner of the NBA and an authorized gaming operator of MLB. In addition, DraftKings owns and operates DraftKings Network, a multi-platform content ecosystem. DraftKings is committed to delivering responsible engagement tools and resources, while focusing on integrity and customer education.
Michael Burry koupil akcie Flutter Entertainment a DraftKings a sází na to, že regulační tlak časem omezí hrozbu predikčních trhů. Akcie Flutter letos klesly o 50 % a DraftKings o 21 %.
Flutter's logo is pictured on a smartphone in this illustration taken, December 4, 2021. REUTERS/Dado Ruvic/Illustration Purchase Licensing Rights, opens new tab
CompaniesJuly 8 (Reuters) - Michael Burry, the investor famed for predicting and profiting from the 2008 U.S. housing market collapse, has bought shares of sports-betting platforms Flutter Entertainment (FLTRF.L), opens new tab and DraftKings (DKNG.O), opens new tab, wagering regulatory scrutiny will eventually curb the threat posed by prediction markets.
Burry said on Wednesday he bought Flutter at about $107 a share and DraftKings "in the low $26s." Together, the investments make up a full-sized position weighted roughly 60/40 toward Flutter, though the investor said he may make each a full position in the future.
Jumpstart your morning with the latest legal news delivered straight to your inbox from The Daily Docket newsletter. Sign up here.
Prediction markets are the main threat facing the two companies, Burry said in a post on his website, because their event contracts can be offered nationwide under Commodity Futures Trading Commission oversight while avoiding state gaming taxes.
Prediction markets let traders buy and sell contracts tied to the outcome of events, including sports, elections and economic data.
Burry said these platforms operate in a loophole alongside a heavily regulated and taxed gambling industry. "I believe that the political climate will not tolerate this," he wrote, adding that he expects prediction markets to eventually be brought under regulation and taxation.
Shares of Flutter, down 50% this year as of last close, remain attractive because the company is a strong business with significant scale despite past capital misallocation, while DraftKings, whose shares are down 21%, is inflecting as an operating business, the investor said.
Meanwhile, Burry also said he bought more JD.com shares at $27.58, calling it one of his top three positions, and that he expects Hong Kong and Chinese stocks to benefit as AI and memory-chip enthusiasm unwinds in South Korea and Japan.
Reporting by Pragyan Kalita in Bengaluru; Editing by Jonathan Ananda
Our Standards: The Thomson Reuters Trust Principles., opens new tab
DraftKings posiluje po spuštění DKeX, vlastní burzy pro prediction markets, která má rozšířit nabídku kontraktů. Firma zároveň uvedla roční objem sázek zákazníků kolem 3,4 miliardy USD a celkový objem obchodů zhruba 11,3 miliardy USD.
DraftKings shares are powering higher. What’s fueling DKNG momentum? What Is Driving DraftKings’ New DKeX Exchange?DraftKings is deepening its push into prediction markets with DKeX, a proprietary exchange built to support a more differentiated DraftKings Predictions experience and expand the range of event contracts available on its platform.
The rollout comes as DraftKings Predictions gains traction, with the company reporting about $3.4 billion in annualized consumer volume for the week ended June 21 and roughly $11.3 billion in annualized total trading volume. That scale is one reason traders are viewing DKeX as more than a routine product update, but as a move toward greater vertical integration.
The launch also comes as the prediction-markets space grows more competitive. Meta is reportedly developing a standalone app internally called "Arena," raising questions about whether new entrants could eventually pressure user engagement, pricing power and market share.
DraftKings Stock: Key Levels To WatchAt $26.98, the stock is trading above its 20-day SMA ($26.52), 50-day SMA ($25.37), and 100-day SMA ($24.41), which keeps the intermediate trend pointed up after the April swing low. The bigger-picture hurdle is still the 200-day SMA ($28.87), with shares trading 5.7% below that long-term trend line after a weaker 12-month run (down 32.85%).
MACD is the cleaner momentum read right now: it’s below its signal line with a negative histogram, which typically means upside pressure is cooling unless buyers can reassert control. In plain terms, MACD tracks trend momentum, and being below the signal line often shows the recent upswing is losing steam rather than accelerating.
Key Resistance: $30.00 — a round-number area that can act as an overhead supply zone as price works back toward longer-term resistance Key Support: $23.50 — a nearby floor that lines up with a prior buyer-defense zone and sits below the 50-day/100-day averages as a "trend break" tell What Is DraftKings and How Does It Operate?DraftKings got its start in 2012 as an innovator in daily fantasy sports, then expanded into online sports and casino gambling after the 2018 Supreme Court ruling that opened the door for state-by-state legalization. Today it generally holds the number-two or -three revenue share position across states where it competes, giving it scale benefits in a market where product depth and pricing can drive retention.
DraftKings Earnings Preview: What Analysts ExpectLooking further out, the next major catalyst for the stock arrives with the August 5, 2026 (estimated) earnings report.
EPS Estimate: 28 cents (Down from 38 cents YoY) Revenue Estimate: $1.56 Billion (Up from $1.51 Billion YoY) Valuation: P/E of 291.2x (Indicates premium valuation) Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price target of $35.13 (high $50.00, low $27.00) across 50 analysts. Recent analyst moves include:
Susquehanna: Positive (Lowers Target to $31.00) (July 1) Citizens: Market Outperform (Raises Target to $36.00) (June 25) Guggenheim: Buy (Maintains Target to $35.00) (June 24) DraftKings Benzinga Edge Rankings ExplainedBelow is the Benzinga Edge scorecard for DraftKings, highlighting its strengths and weaknesses compared to the broader market:
The Verdict: DraftKings’ Benzinga Edge signal reveals a premium-valued setup with only moderate growth support and still-weak momentum characteristics. For longer-term bulls, the cleaner technical tell is whether price can reclaim the 200-day area; for risk control, $23.50 is the nearby level that would start to undermine the current uptrend structure.
DraftKings Stock Price Action on TuesdayDKNG Stock Price Activity: DraftKings shares were up 2.75% at $26.93 at the time of publication on Tuesday, according to Benzinga Pro data.
Image: Shutterstock
Market News and Data brought to you by Benzinga APIs
DraftKings spustil vlastní predikční trh DKeX a integroval jej do aplikace DraftKings: Sports & Casino. Predictions mezitím dosahuje asi 3,4 miliardy USD v ročním objemu od zákazníků.
DraftKings Predictions continues rapid growth, generating approximately $3.4 billion in annualized consumer volume within DraftKings' unified platform
BOSTON--(BUSINESS WIRE)--DraftKings Inc. (Nasdaq: DKNG) (“DraftKings” or the “Company”) today announced the launch of its proprietary prediction markets exchange, DKeX, with integration into the unified DraftKings: Sports & Casino app, further advancing the DraftKings Predictions experience. The launch positions the Company to innovate more rapidly through greater ownership over content depth, operating economics, and the end-to-end customer experience. DKeX marks the next phase in DraftKings’ prediction markets evolution, strengthening its ability to deliver differentiated sports experiences across the country alongside its leading sportsbook.
DKeX marks the next phase in DraftKings’ prediction markets evolution, strengthening its ability to deliver differentiated sports experiences across the country alongside its leading sportsbook.
Share "DraftKings is at its best when building innovative platforms that bring together technology, customer focus, and world-class execution to shape the future of sports engagement," said Jason Robins, Chief Executive Officer and Co-Founder of DraftKings. "The momentum we've seen on DraftKings Predictions in recent months reflects the significant progress we've made in delivering a more seamless and connected experience for sports fans. DKeX provides a vertically integrated foundation for DraftKings Predictions, strengthening our prediction markets content and capabilities, giving us greater control over the technology that powers those offerings, and enabling us to move faster as we continue enhancing our unified app."
The launch of DKeX comes as DraftKings Predictions continues rapid growth, with approximately $3.4 billion in annualized consumer volume and approximately $11.3 billion in annualized total trading volume for the week ended June 21. The Company expects continued growth throughout July, driven by ongoing enhancements to the platform, growing adoption of new event contracts and features such as combinations, and heightened interest surrounding the World Cup. Since launching in mid-May, more than 30% of customers have used combinations, which allow multiple individual contracts to be bundled into a single position, highlighting strong demand for a customizable, sports-first prediction markets experience.
“The launch of DKeX and its integration into our unified app is a major step forward in delivering a best-in-class customer experience in sports nationwide,” said Jeanine Hightower-Sellitto, DraftKings Senior Vice President and General Manager of Prediction Markets. “The pace of development across Predictions has been substantial, from expanding our event contract offerings to introducing key features like combos, which customers have quickly embraced. DKeX is the latest milestone in that progression and creates new opportunities to further expand the offering ahead of some of the biggest moments on the sports calendar.”
As part of DraftKings' all-in-one platform strategy, DraftKings Predictions continues to evolve within the unified app. The DraftKings Sports experience brings sports betting and prediction market trading together with sportsbook offerings and/or sports event contracts available based on customer location. Recent enhancements include Predictions Sports Combos, expanded pre-game and in-play stats, dedicated hubs for major events such as the World Cup, and an always-on Live tab that surfaces real-time sporting events, giving customers more opportunities to engage with key moments as they unfold. DraftKings also enhanced its Responsible Engagement tools through My Budget and Controls, an in-app destination for managing deposit limits and personalized activity alerts.
DraftKings Predictions has also expanded with additional event contract offerings, including MLB player and futures contracts, No Runs First Inning (NRFI) baseball, broader NBA and NHL selections, and international sports.
The DraftKings Sports experience is available nationally, including sports event contracts in 18 states. The Company applies its Responsible Engagement principles across its prediction markets offering, supporting informed participation through tools and resources, including the DraftKings Responsible Trading Center.
DKeX leverages the technology and CFTC license from DraftKings’ acquisition of Railbird Technologies.
To access prediction markets and more, customers can download the DraftKings: Sports & Casino app on iOS and Android.
About DraftKings
DraftKings Inc. is a digital sports and gaming company created to be the Ultimate Host and fuel the competitive spirit of sports fans with platforms that range across daily fantasy, regulated gaming, prediction markets and digital media. Headquartered in Boston and launched in 2012 by Jason Robins, Matt Kalish and Paul Liberman, DraftKings is the only U.S.-based vertically integrated sports betting operator. DraftKings’ mission is to make life more exciting by responsibly creating the world’s favorite real-money games, betting experiences and event contracts trading. DraftKings Sportsbook is live with mobile and/or retail sports betting operations pursuant to regulations in 30 states, Washington, D.C., Puerto Rico, and Ontario, Canada. The Company operates iGaming pursuant to regulations in five states and in Ontario, Canada under its DraftKings brand and pursuant to regulations in four states and in Ontario, Canada, under its Golden Nugget Online Gaming brand. DraftKings also owns Jackpocket, the leading digital lottery courier app in the United States. DraftKings’ daily fantasy sports platform is available in 44 states, Washington, D.C., and certain Canadian provinces. DraftKings' wholly-owned subsidiary GUS III LLC (d/b/a DraftKings Predictions) also operates DraftKings Predictions, offering federally regulated event contracts under CFTC oversight. DraftKings is both an official sports betting and daily fantasy partner of the NHL, PGA TOUR and WNBA, as well as an official daily fantasy partner of NASCAR, an official sports betting partner of the NBA and an authorized gaming operator of MLB. In addition, DraftKings owns and operates DraftKings Network, a multi-platform content ecosystem. DraftKings is committed to delivering responsible engagement tools and resources, while focusing on integrity and customer education.
Forward-Looking Statements
Certain statements made in this press release are “forward looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. When used in this press release, the words “estimates,” “projected,” “expects,” “anticipates,” “forecasts,” “plans,” “intends,” “believes,” “seeks,” “may,” “will,” “would,” “should,” “future,” “propose” and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside DraftKings’ control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see DraftKings’ filings with the Securities and Exchange Commission. DraftKings does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Bank of America vidí u DraftKings rychle rostoucí prediction markets, ale varuje před vyššími náklady a ztrátami až 550 milionů USD letos, nad současným výhledem. Zůstává u hodnocení Neutral.
Draftkings Inc (NASDAQ:DKNG) shares have been volatile over the past month as investors continue to weigh the potential impact of prediction markets on the company’s growth outlook, according to Bank of America.
The analysts wrote that DraftKings shares have swung between an intraday low of $23.50 and a high of $30 since May, before easing back to around $25, or roughly 17% below recent highs. Shares were down another 4% at about $23.50 on Thursday.
They wrote that the move reflects a growing debate among investors around prediction market volumes, core sports betting trends, and valuation, particularly ahead of major sporting events.
The bank wrote that it has broken down the current “bull-bear” debate across prediction markets, DraftKings’ core business, and earnings outlook, while also raising its long-term prediction market total addressable market (TAM) estimate to $1.9 trillion in annual volume, up from a prior $1.3 trillion. Despite the higher TAM assumption, the firm made no changes to its earnings estimates and maintained a Neutral rating on the stock.
On prediction markets, Bank of America wrote that volumes have been accelerating, with DraftKings reporting annualized activity of about $3 billion in May, and projections suggesting that could rise to roughly $9 billion in June.
The analysts wrote that DraftKings’ market share has increased from around 1.3% in April to over 2% on certain days in June, and could potentially reach 5% to 10% by 2027 if product and marketing initiatives continue to scale. Under that scenario, the firm wrote that prediction markets could generate $500 million to $1 billion in revenue by 2027, with high incremental margins, though market-making activity could introduce additional upside volatility.
However, Bank of America also wrote that higher volumes may come with increased customer acquisition and promotional costs. The analysts estimate potential losses of $300 million to $550 million this year, above DraftKings’ current guidance of $200 million to $300 million.
They wrote that aggressive promotional activity, including offers such as “trade $5 get $200,” alongside lower fee economics and evolving market structure, could pressure near-term profitability until market-making scales further.
On the core business, Bank of America wrote that DraftKings continues to gain share in sports betting, supported by ongoing product improvements and marketing efficiency, with sports net gaming revenue now approaching parity with FanDuel.
At the same time, the analysts wrote that concerns remain around potential cannibalization from prediction markets, structural hold volatility following recent unfavorable sports outcomes, and softness in iGaming trends. They noted that iGaming has seen roughly 400 basis points of market share loss over the past 18 months, while gross gaming revenue growth slowed to low-single digits in the second quarter.
