Published on: February 12, 2026, 04:25h.
Updated on: February 12, 2026, 04:26h.
- DraftKings shares tumble as the company provides disappointing 2026 revenue forecast
- Projected sales range from $6.5 billion to $6.9 billion
- Market analysts had anticipated $7.3 billion
Shares of DraftKings (NASDAQ: DKNG) fell sharply in after-hours trading on Thursday following a lackluster revenue projection for 2026, significantly underperforming Wall Street expectations.
As of this writing, the already struggling gaming stock has declined by 16.10% in after-hours trading, with the company projecting 2026 revenue between $6.5 billion and $6.9 billion, falling short of the expected $7.3 billion. This outlook is particularly disappointing, especially with some market analysts predicting an upturn for DraftKings this year.
The company stated, “The guidance provided for fiscal year 2026 does not incorporate potential variability from sports outcomes, meaning it excludes the modest benefits from year-to-date sports results.”
The sobering forecast puts the stock price near $21 in after-hours trading, a price point not observed since April 2023. Over the past five years, DraftKings shares have depreciated by nearly 59%.
Concerns Arise from DraftKings’ Forecast on Prediction Markets
Data indicates that in regions where DraftKings operates online sports betting, the prediction market operator Kalshi is only slightly encroaching on its deposit share. Nevertheless, DraftKings’ lackluster guidance for 2026 could ignite speculation that yes/no betting exchanges may be impacting sportsbook performance.
“DraftKings currently operates mobile sports betting in 26 states and Washington, D.C., encompassing about 52% of the U.S. population,” the company stated.
The Boston-based firm briefly mentioned prediction markets in its earnings report, highlighting that the 2026 revenue and EBITDA projections “reflect anticipated investments in DraftKings Predictions.”
Regarding the prediction markets platform, CEO Jason Robins expressed optimism, noting that the operator plans to utilize growth capital to enhance this offering and “attract millions of customers,” citing confidence in their expertise to achieve this goal.
DraftKings’ Assumptions About State Taxes May Present Risks
This guidance carries potential risks as the operator indicated that it “assumes state tax rates will remain at current levels” for the forecasted period.
This optimistic assumption could prove to be faulty, particularly considering the recent disclosure that Gov. Gretchen Whitmer (D-MI) intends to introduce an Illinois-style per bet tax in her state—a significant burden for large operators like DraftKings. Additionally, Whitmer aims to raise the wagering tax on iGaming operators in Michigan, including DraftKings.
Further, Arizona Governor Katie Hobbs (D) is advocating for a more than fourfold increase in the state’s sports betting tax. The plans from both Arizona and Michigan suggest that states are likely to consider hiking sports wagering taxes to boost revenue—an aspect DraftKings must take into account.