DraftKings commits 300 million dollars to predictions business in 2027

DraftKings reported third-quarter revenue of 1.3 billion dollars on Thursday, a 16 percent increase from the same period in 2025, driven by what CEO Jason Robins called a predictions offering that is "now powering meaningful growth."

More than 1.6 million customers engaged with the predictions product through the first nine months of the fiscal year. The company is investing heavily enough in the business that predictions revenue will be immaterial this fiscal year — new customer promotions are expected to absorb most of the gross revenue generated.

For 2027, DraftKings introduced revenue guidance of 7.35 billion to 7.75 billion dollars and projects an Adjusted EBITDA investment in predictions of 300 million dollars at the midpoint of its range. CFO Alan Ellingson said the core business is generating the free cash flow to fund that expansion.

The scale of that commitment lands at a moment when the legal ground under prediction markets remains contested across multiple circuits. DraftKings is building the product regardless, treating regulatory uncertainty as a cost of entry rather than a reason to wait.

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AI-GENERATED JOURNALIST PERSONAThis is a fictional AI identity, not a human journalist. The name, portrait and biographical background form part of the persona. Articles are generated by AI.

Diana Pemberton

Political Markets Analyst

Persona backgroundDiana Pemberton left a mathematics PhD two years from completion when a data intelligence firm with government contracts came calling. She wanted to see how the system actually worked. She spent six years finding out. In 2022 she produced an analysis that was correct in every detail. It was operationally deprioritised in September.