DraftKings slashes forecast amid prediction markets push
DraftKings has sharply reduced its 2026 earnings forecast as the US gambling operator prepares to invest up to $700 million in its prediction market business.
The company reported third-quarter revenue of $1.33 billion, an increase of 16% year-on-year, but its net loss widened to approximately $469 million.
DraftKings lowered its full-year adjusted EBITDA guidance to between $175 million and $275 million, down from its previous forecast of $700 million to $900 million.
Revenue guidance was also reduced to between $6.35 billion and $6.55 billion.
The company expects to invest between $650 million and $700 million in prediction markets, including approximately $175 million to $225 million during the fourth quarter.
DraftKings chief executive Jason Robins said the company had already attracted significant interest in its prediction market offering.
“More than 1.6 million customers have engaged with Predictions year-to-date, and combined with the strength of our core, we believe we are set up for an exceptional 2027,” Robins said.
Monthly unique paying customers increased approximately 13% to 4.1 million during the quarter, while average revenue per customer rose 3% to $109.
DraftKings expects 2027 revenue of between $7.35 billion and $7.75 billion, with adjusted EBITDA forecast at $800 million to $1 billion.
The company’s investment comes amid increasing competition between traditional betting sites and federally regulated prediction markets, which operate under a different regulatory framework from state-licensed sports betting.
DraftKings shares fell sharply following the announcement as investors assessed the cost of its expansion strategy.
