DraftKings Guides 2026 Revenue to $6.7B as Prediction Markets Cut Fees to 1.2%
DKNG•DraftKings shares have fallen about 30% since January after posting $6.1 billion in revenue for 2025, up 27% year-over-year. The company guided 2026 revenue of $6.7 billion (+10%), trailing peer-to-peer platforms like Kalshi that are capturing market share with fees as low as 1.2%.
1. Share Price Decline
DraftKings shares have slid roughly 30% since January, reflecting investor concerns over growth deceleration and rising competition from peer-to-peer platforms siphoning customers and engagement.
2. 2025 Revenue and Growth
The company reported $6.1 billion in revenue for 2025, marking a 27% increase from the prior year, driven by major sporting event betting volumes across NHL, NBA and the World Cup.
3. 2026 Guidance Falls Short
DraftKings projected $6.7 billion in revenue for 2026, representing 10% growth below last year's 27% pace, signaling slower expansion relative to Wall Street expectations.
4. Competition from Prediction Markets
Unregulated platforms like Kalshi and Polymarket are capturing market share with peer-to-peer sports contracts and fees as low as 1.2%, compared to DraftKings' 7–10% vig, pressuring traditional sportsbook margins.
