DraftKings Predictions to Expand Reach, Trim 2025 Outlook

DraftKings (DKNG) said on Nov. 7, 2025, that DraftKings Predictions, a prediction-markets product planned for launch before year-end pending state licenses, will target states without legal online sports betting as the company narrowed its fiscal 2025 revenue outlook.

Prediction Markets Strategy and Q3 Results

DraftKings will roll out DraftKings Predictions in the coming months, focusing on states where it does not currently offer its Sportsbook, targeting markets where online sports betting remains illegal. The company acquired prediction-market startup Railbird on Oct. 21, 2025, to accelerate development of the product.

CEO Jason Robins described the product as “structurally limited, lacking the depth and breadth of a sports betting offering,” but said the company views it as a “significant incremental opportunity.” The product aims to expand DraftKings’ addressable market and unlock new revenue streams, potentially encouraging broader state legalization.

For the quarter ended Sept. 30, 2025, DraftKings reported revenue of $1.1 billion, up 4.0% year-over-year, and a net loss of $257 million. The company revised its fiscal 2025 revenue guidance downward, reflecting increased investment in prediction markets. Its updated guidance now includes the expected launch of DraftKings Predictions, with management signaling a more cautious investment approach focused on shorter gross-profit payback periods than for established products.

ESPN Partnership and Transition

DraftKings will become ESPN’s exclusive sportsbook and odds provider under a multiyear deal effective Dec. 1, 2025, following ESPN’s wind-down of its partnership with Penn Entertainment. As part of the transition, Penn will pay ESPN $38.1 million in remaining fees and $5 million in advertising support.