DraftKings Projects $8.5–9.1B FY28 Revenue and $1.3T Prediction-Market TAM
DraftKings plans to raise FY28 revenue outlook to $8.5–9.1 billion and reset 2028 EBITDA guidance to $1.5–1.7 billion while forecasting a $1.3 trillion prediction-market TAM with 10–20% share potential by 2028. It launched an online sportsbook in Puerto Rico and carries a $27 price target.
1. Investor Day Forecast Revisions
DraftKings plans to update its FY28 guidance from prior targets of $7.1 billion in revenue and $2.1 billion in EBITDA to a revised range of $8.5–$9.1 billion in revenue and $1.5–$1.7 billion in EBITDA, reflecting new assumptions around core sports betting and prediction-market fees.
2. Prediction Market TAM Outlook
Management projects the total addressable market for prediction markets could reach $1.3 trillion in total volume, growing to $600 billion by 2028, with DraftKings aiming to capture 10–20% of that segment over the medium term.
3. Puerto Rico Sportsbook Launch
The company has launched its online sportsbook in Puerto Rico, expanding legal access for residents and positioning DraftKings to tap into a new regulated sports wagering market.
4. BofA Neutral Rating and Price Target
BofA Securities maintained a Neutral rating with a $27 price target, citing heightened competition from emerging prediction markets and awaiting further clarity from the upcoming Investor Day.