DraftKings will launch sports event contracts on its own prediction markets platform “in the coming months”, marking a notable step in the company’s strategic expansion beyond traditional sports betting and iGaming.
The announcement came as part of DraftKings’ third-quarter 2025 earnings release, where the company revealed that “DraftKings Predictions” may make its debut before the end of the year, pending final regulatory approvals in select states.
The new product will introduce sports event contracts, currently operating under federal regulation in all 50 US states.
DraftKings’ entry into this space signals its intent to broaden its reach to regions currently without legal online sports betting, thereby tapping into a new segment of customers while maintaining compliance with federal guidelines.
CEO and co-founder Jason Robins described the upcoming launch as one of the most promising developments in the company’s history, emphasising that the product represents a “significant incremental opportunity.”
Robins explained in a business update to the company’s shareholders that despite the structural limitations of prediction markets compared to full-scale sports betting, they could serve as an important growth driver, particularly in states where DraftKings’ Sportsbook is not yet licensed.
He noted that prediction markets are relatively small in scale but can meaningfully expand DraftKings’ total addressable market.
An opportunity waiting to happen
Nearly half of the US population remains without access to regulated online sports betting, leaving room for a federally compliant product to bridge that gap.
Robins expressed optimism that the growing popularity of prediction-based platforms might also create an incentive for more states to introduce “reasonable” sports wagering and iGaming regulation and taxation.
DraftKings intends to focus the rollout of prediction markets on the states where its sportsbook is not available, reflecting a pragmatic approach designed to maximise opportunity while respecting existing state-level regulatory environments.
The company also plans to manage its investment in the product cautiously, aiming for shorter gross profit payback periods than those seen with its more established offerings.
Robins underscored that DraftKings’ strengths in customer acquisition, product development, compliance, and responsible gaming would provide an advantage over competitors.
He highlighted that recent partnerships with major media outlets ESPN and NBCUniversal will further enhance DraftKings’ visibility and engagement across the sports landscape.
“We will pursue this opportunity, we will compete, and we will win,” Robins said, indicating confidence that the company’s existing operations can be leveraged to dominate the emerging prediction market sector.
Both DraftKings and FanDuel have explored the viability of prediction-based platforms in recent months, but DraftKings now appears fully committed to launching at scale.
Prediction markets arrive amid revenue gains
Alongside the product news, DraftKings reported solid financial performance for the third quarter of 2025. Revenue for the three months ended 30 September reached $1.14bn, up 4% from $1.10bn in the same quarter of 2024.
The increase was attributed to sustained customer engagement, efficient new user acquisition, and an improved sportsbook hold percentage, although these gains were partially offset by customer-favourable sports outcomes during the quarter.
When adjusting for sport outcome variability, the company said revenue growth remained strong. Sportsbook handle in October rose 17% year-over-year, indicating continued user activity heading into the fourth quarter.
Monthly Unique Payers (MUPs) increased to approximately 3.6 million, representing a 2% year-on-year rise, with growth primarily driven by customer retention and ongoing acquisition efforts.
Excluding Jackpocket, which DraftKings acquired earlier this year, MUPs grew by 6%.
Average Revenue per Monthly Unique Payer (ARPMUP) also increased 3% year-over-year to $106, reflecting higher iGaming revenue and structural improvement in sportsbook hold, partially counterbalanced by less favourable sporting results.
DraftKings revised its full-year 2025 guidance upward, now expecting revenue between $5.9bn and $6.1bn, representing 24% to 28% growth over 2024.
The company also raised its adjusted EBITDA forecast to between $450m and $550m, signalling confidence in continued operational efficiency and disciplined cost management.
These updated projections factor in anticipated contributions from upcoming initiatives, including the launch of mobile sports betting in Missouri and the introduction of DraftKings Predictions.
DraftKings will host its quarterly earnings call and webcast later today (7 November).