DraftKings is preparing to roll out its upcoming ‘DraftKings Predictions’ platform, marking the company’s entry into the sports event contracts market. The launch could take place before the end of 2025, pending final regulatory approvals in select U.S. states.
Expanding Beyond Traditional Sports Betting
The new product will feature federally compliant sports event contracts, allowing DraftKings to operate in regions where online sports betting is not yet legal. By doing so, the company hopes to reach new audiences while maintaining full regulatory alignment.
During the Q3 2025 earnings call, CEO and co-founder Jason Robins described the initiative as one of the company’s most promising ventures to date. He explained that while prediction markets may not match the scale of full-fledged betting, they represent an important growth opportunity — particularly in untapped states.
A Strategic and Cautious Investment
DraftKings is taking a measured approach to the investment, targeting faster gross profit payback periods compared to its core sportsbook and iGaming products.
Robins highlighted the company’s strengths in customer acquisition, product innovation, compliance, and responsible gaming, noting these capabilities would give DraftKings an edge over competitors entering the same space.
He also referenced new media partnerships with ESPN and NBCUniversal, which are expected to boost visibility and engagement across the sports entertainment ecosystem.
“We will pursue this opportunity, we will compete, and we will win,” Robins said.
Although both DraftKings and FanDuel have shown interest in prediction markets, DraftKings appears to be moving fastest toward a full-scale rollout.
Strong Third-Quarter Performance
The planned launch follows another solid financial quarter for DraftKings. For Q3 2025, the company reported $1.14 billion in revenue, a 4% increase year-on-year, driven by strong user engagement and an improved sportsbook hold.
While some betting outcomes favored players during the quarter, the company still maintained robust underlying growth. In October, sportsbook handle climbed 17% year-over-year, indicating sustained betting activity as the company entered Q4.
iGaming Growth and Revised Outlook
Monthly Unique Payers (MUPs) reached 3.6 million, up 2% from 2024, supported by strong customer retention and acquisition. Excluding its Jackpocket acquisition, MUPs rose 6% year-on-year.
Meanwhile, Average Revenue per Monthly Unique Payer (ARPMUP) increased 3% to $106, reflecting higher iGaming revenue and an improved sportsbook margin, even as sports outcomes remained unpredictable.
Following these results, DraftKings raised its full-year 2025 guidance, projecting revenue between $5.9 billion and $6.1 billion — representing 24% to 28% growth year-over-year.
Additionally, adjusted EBITDA was revised upward to $450–550 million, underscoring confidence in the company’s operational efficiency and cost discipline.
Looking Ahead
With mobile sports betting set to debut in Missouri and the upcoming launch of DraftKings Predictions, the company appears ready to diversify its portfolio and expand its footprint in both regulated and emerging markets.
As DraftKings continues blending innovation with compliance, its move into prediction markets could mark a pivotal step in reshaping how U.S. audiences engage with future sports outcomes.
