Published on: May 7, 2026, 05:57h.
Updated on: May 7, 2026, 05:57h.
- Introducing DraftKings Predictions in Super App
- Resulted in an 80% reduction in customer acquisition costs in April
- DraftKings outperformed Q1 predictions
DraftKings’ (NASDAQ: DKNG) anticipated Super App, aimed at integrating all of the operator’s services into one platform, is already exhibiting impressive advancements.
Launched in March, the all-in-one mobile platform incorporates DraftKings Predictions — its innovative prediction markets segment — resulting in an over 80% decrease in customer acquisition costs for prediction markets in April.
“Within Predictions, we’ve expanded the number of markets available to users, which is elevating Predictions volume per customer above the Sportsbook handle per customer,” noted CEO and co-founder Jason Robins in his quarterly report to shareholders. “In April, our annualized Predictions consumer volume surpassed $1 billion, with total traded volume reaching over $2.3 billion—an increase of 38% and 43% month-over-month, respectively.”
The company introduced its prediction market platform last December and is already reaping positive results from its market-making strategy.
“We have also initiated market making, which opens up an additional layer of revenue potential. Market making is already yielding a profitable return for us,” Robins adds. “In the upcoming weeks, we anticipate launching our proprietary exchange alongside offering combos.”
Combos refer to parlays within prediction market terminology.
DraftKings Identifies Major Growth Potential in Sports Event Contracts
While the longevity of sports derivatives in the prediction markets sector is still under discussion, the fact remains that event contracts currently constitute a significant portion of volume in yes/no exchanges. Even though this ratio may decline over time, sports will continue to play a crucial role in the industry.
This development is advantageous for DraftKings, allowing them to utilize their established sportsbook capabilities to capture a larger market share in the prediction markets. As Robins emphasizes, whether dealing with traditional sports wagers or event contracts, success for operators hinges on “attractive markets, competitive pricing, liquidity, trust, and an effortless customer experience.”
The DraftKings CEO also indicated that starting in Q3, the firm will segment its sports revenue, which will encompass both sportsbook and Predictions. This move may provide analysts and investors with a clearer understanding of DraftKings’ substantial earnings before interest, taxes, depreciation, and amortization (EBITDA) potential.
“The prospects in Sports are enormous. At Investor Day, we outlined a roadmap to a $55 billion to $80 billion gross revenue opportunity by 2030, alongside a long-term Adjusted EBITDA Margin of at least 30%,” Robins noted. “Predictions play a vital role in this potential, expanding our outreach, reinforcing our Sports platform, and generating significant incremental Adjusted EBITDA over time.”
Q1 Performance Summary
DraftKings reported solid results for the first quarter, posting non-GAAP earnings per share of 20 cents, surpassing the consensus estimate of 17 cents. Revenue clocked in at $1.65 billion, outpacing Wall Street expectations by $20 million.
Driven by improved sportsbook net revenue margins, average revenue per monthly unique player (ARPMUP) surged 21% year-over-year. The company also executed a share buyback of $99 million throughout the quarter.
Boston-based DraftKings reaffirmed its 2026 projections, anticipating revenue between $6.5 billion and $6.9 billion, with adjusted EBITDA of $700 million to $900 million. Interestingly, DraftKings pointed out that 69% of the volume in sports prediction markets is generated from states where sports betting is not permitted.