DraftKings spends up to $700m to chase an ‘exceptional’ 2027
Q3 revenue climbed 16% to $1.33bn even as the full-year guidance range was cut.
The hit
DraftKings has updated its 2026 revenue guidance to $6.35bn-$6.55bn, blaming heavier spending on its Predictions arm. CEO Jason Robins told investors the division is now driving “meaningful growth” after more than 1.6 million customers used it this year, according to intergameonline.com.
Why it matters
The squeeze shows DraftKings treating predictions as a land-grab, not a quick profit line. Robins is betting that near-term EBITDA pain buys market share, after rival Flutter Entertainment said earlier this week its own prediction-market capabilities had “substantially improved”. For traders, the gap between 2026’s thin margins & 2027’s expected revenue jump is the thing to watch.
The record
| Q3 revenue | $1.33bn, up 16% year-on-year (DraftKings) |
|---|---|
| 2026 adjusted EBITDA guidance | $175m-$275m (DraftKings) |
| Predictions investment | $650m-$700m of adjusted EBITDA for 2026 (DraftKings) |
| Q4 Predictions spend | $175m-$225m planned (DraftKings) |
| 2027 revenue target | $7.35bn, up 17% at midpoint (DraftKings) |
What happens next
Watch DraftKings’ Q4 results for the scale of Predictions investment & whether the customer base keeps growing into 2027.
Sources: DraftKings cuts outlook as it pours more money into prediction markets
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