Boston-based bookmaker and digital gaming operator DraftKings announced a bullish first-quarter report, stating that year-over-year revenues had increased significantly and signaling ambitious plans for its prediction market brand, DraftKings Predictions.
Even with DraftKings’ continued growth, many players still prefer to diversify their action by exploring the deep markets and competitive odds available at top offshore sportsbooks.
DraftKings Begins 2026 With a Bang
DraftKings’ first three months of 2026 have been better than many expected, as the company reported $1.65 billion in revenue, which is 17% higher than the first quarter of 2025. Moreover, the Boston-based bookmaker also revealed a stellar year-over-year revenue turnaround, pivoting from a $33.9 million loss in the first three months of last year to announcing a profit of $21.1 million during the same period this year.
One of the gold standards of a company’s financial health is its EBITDA, which stands for earnings before interest, taxes, depreciation, and amortization. It strips away the layers and allows investors to view a company in its purest form. DraftKings announced an adjusted EBITDA of roughly $168 million, which reveals an increase of 64% over last year.
The Q1 report was rosier than many Wall Street pundits predicted, but the DraftKings C-suite was not surprised. The company announced it has maintained its 2026 financial guidance after the first quarter results were known and committed to its 2026 projections of between $6.5 billion and $6.9 billion in annual revenue and adjusted EBITDA of $700 million to $900 million.
Alan Ellingson, DraftKings’ chief financial officer, stated: “The business continues to scale efficiently as we grow revenue, expand profitability, and invest in high-return opportunities. We continue to expect fiscal year 2026 revenue of $6.5bn to $6.9bn and Adjusted EBITDA of $700m to $900m.”
DK CEO Excited About Prediction Market
Buoyed by an impressive Q1 earnings report, DraftKings CEO Jason Robins spoke about the opportunities in the controversial prediction market. DraftKings rolled out its DraftKings Predictions late last year to compete in what is essentially a dual sports betting industry masquerading as a derivatives exchange.
Like its fellow mobile gaming powerhouse, FanDuel, DraftKings only operates its prediction market brand in states where it does not have a mobile sports betting presence. Robins is bullish on the industry even as it withstands the withering legal challenges from several state gaming commissions objecting to its presence in their respective states under the federal authority of the Commodity Futures Trading Commission.
“Our core business is strong, and profitability is inflecting,” DraftKings CEO Jason Robins said in a statement. “That gives us the firepower to press our advantage in Predictions. With our Super App, market-making capabilities, proprietary exchange, and combos coming together, we intend to establish a leadership position in Sports Predictions before year-end.”
Robins echoed many of the sentiments expressed by FanDuel’s parent company, Flutter, regarding the impact prediction markets are having on the more popular and established mobile sports betting industry.
“Internal and third-party data suggest Predictions is impacting Sportsbook industry handle only very slightly and primarily among low-margin wagers, resulting in a negligible impact to revenue,” Robins wrote.
Both FanDuel and DraftKings are planning large expenditures into their respective prediction market brands this year, with the former anticipating spending $300 million on marketing its brand, FanDuel Predicts.
Likewise, Robins is also designing a massive marketing campaign this year for DraftKings Predictions, stating, “We are planning significant investment in the coming months to improve our [prediction market] offering, build liquidity, and scale customer acquisition. We intend to execute with urgency.”
