DraftKings cuts 2026 outlook as prediction-market spending rises

DraftKings reported third-quarter results after the U.S. market closed on November 5 and lowered its full-year 2026 outlook. The online betting company's quarterly revenue rose 16% to $1.329 billion, but it reduced its annual revenue forecast to $6.35 billion–$6.55 billion from $6.5 billion–$6.9 billion.^[1][2][3]

The company also lowered its adjusted earnings outlook after increasing investment in its Predictions offering. Prediction markets let users trade contracts whose payouts depend on the outcome of an event.^[4]

Winning new customers is the main spending channel. CEO Jason Robins said most of the $650 million–$700 million in investment went toward customer acquisition. Those costs weigh on earnings upfront, while recovering the investment depends on how much revenue the new customers subsequently generate; the lower adjusted earnings outlook shows the near-term cost of that expansion.^[5][4]

If rivals also need to spend more to retain or attract users, prediction-market competition could raise customer-acquisition costs across online betting. DraftKings' growing revenue alongside a lower annual outlook makes the cost of generating sales central to assessing the business.^[2][3][4]

Impact