DraftKings is expanding a prediction market business from the client app to the exchange, even as the investment is set to absorb most of the Adjusted EBITDA expected from its established operations this year.
DraftKings has increased its expected 2026 Adjusted EBITDA investment in Predictions to between $650 million and $700 million, sharply reducing its group profit forecast despite continued profitability in its established sportsbook and iGaming business.
Overall third-quarter revenue rose 16% year over year to $1.33 billion. However, the quarterly Adjusted EBITDA loss widened to $316.9 million from $126.5 million.
