Overview
- DraftKings said it expects to debut DraftKings Predictions in the coming months with sports event contracts available in many states, with a fourth-quarter launch possible if ready.
- The launch remains pending licensure, including National Futures Association approval for DraftKings to act as a futures commission merchant and potential self-certification of markets that could be delayed by a government shutdown.
- DraftKings will limit Predictions to states where it does not operate a licensed sportsbook, a stance shaped by warnings from regulators in Arizona, Ohio, Illinois, New York, and Michigan about prediction-market involvement.
- CEO Jason Robins said predictions are an incremental opportunity rather than a substitute for traditional sports betting, and he plans to leverage new ESPN and existing NBCUniversal partnerships as rivals like FanDuel and CME explore the space.
- Alongside the strategy update, DraftKings reported third-quarter revenue of $1.14 billion with a $126.5 million adjusted EBITDA loss and lowered full-year revenue and profit guidance.