DraftKings forecasts $6.9 billion revenue guidance on 'expected investment in DraftKings Predictions'
Major sports betting platform DraftKings is looking to scale its dedicated event betting platform DraftKings Predictions over the next year, according to its latest quarterly report.
"We closed 2025 on a high note. Fourth quarter revenue increased 43% year-over-year and we achieved records for revenue and Adjusted EBITDA," DraftKings CEO Jason Robins said in Thursday's release. "We also see a massive, incremental opportunity in DraftKings Predictions. We plan to deploy growth capital to build the best customer experience in Predictions, and acquire millions of customers. We have the playbook to execute and win."
The company launched a standalone predictions app under the oversight of the U.S. Commodity Futures Trading Commission in December, enabling users to wager on real-world event outcomes, with an emphasis on sports-related bets.
According to the fourth-quarter report, DraftKings saw growth in both its core sportsbook platform and predictions market, which are poised for growth this year, as both sports betting and predictions are expected to continue expanding in the United States.
Prediction markets have taken the world by storm following their surprise adoption during the 2024 U.S. elections. Since then, leading firms Kalshi and Polymarket have continued to scale, as new entrants like Coinbase, Genesis, and Crypto.com join the fray.
DraftKings introduced a new revenue guidance range of $6.5 billion to $6.9 billion for its 2026 fiscal year, in part reflecting "expected investment in DraftKings Predictions, line-of-sight jurisdictions launches, and disciplined planning as business conditions evolve." This softer guidance led to a 15% after-hours selloff in the company's share price.
Through a partnership with Crypto.com, DraftKings Predictions launched in 38 states, including California, Florida, Georgia, and Texas, where traditional sports betting isn't legal. Its core product is reportedly available in 26 states and Washington, D.C. Earlier Thursday, SEC Chairman Paul Atkins called prediction markets a "huge issue" that regulators are focused on.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Cerebras (CBRS.US) Cloud Business Soars, Masking Hardware Decline; OpenAI Supports Half of Cloud Revenue
Cerebras achieved record Q3 revenue, but hardware income dropped by nearly 30%, while cloud business accounted for two-thirds of total revenue. OpenAI contributed $72.4 million. The company raised its full-year guidance and expects Q4 to be close to breakeven.
Microsoft (MSFT.US) offers voluntary buyout packages to about 60,000 employees: Structural divergence in U.S. employment under AI transformation
In 2026, the U.S. labor market is characterized by both low layoffs and weak hiring. Companies like Microsoft and American Express are leveraging AI to optimize their workforce, while data centers are driving growth in the construction sector. However, entry-level white-collar jobs face increasing pressure, with real wages experiencing negative growth and structural transformation risks becoming more prominent.
"Inflation is really too high"! Federal Reserve "third-in-command": The Fed must continue to take action and promptly bring the price level back to 2%
John Williams, President of the New York Federal Reserve and the “number three” official at the Federal Reserve with a permanent voting right, stated that U.S. inflation remains high and policymakers must take further action to curb price pressures.
Crypto prices
More
