The industry listened today as Jason Robins addressed the attendees of DraftKings' official Q3 investors call, specifying plans for predictions amongst other key topics following a whirlwind of company updates this week.
Indeed, Robins opened by overviewing DraftKings' Q3 financial results, highlighting that - despite a relatively quiet quarter by the operator's high standards - revenue has increased by almost $4bn since 2022, with the future outlook remaining bright and 'bullish'.
Moreover, Robins also underlined, alongside CFO Alan Ellingson, the operator's predicted full-year 2025 financials, stating that revenue is expected to reach between $5.9bn-$6.1bn, with EBITDA anticipated to settle at between $450m-$550m.
Predictions, anyone?
As many will have 'predicted,' it didn't take long for the industry's new favorite subject to make an appearance, as interested parties posed a multitude of prediction market-related queries that were adeptly handled by Robins. Overall, it would seem that - at least form the outside - DraftKings has a clear outlook on its role within the prediction space, with Robins specifying first and foremost that the operator would be looking to launch its prediction market offerings before the year's end.
Perhaps more poignant, however, is the clarification that the company only plans to initially target markets in which sports betting is currently unavailable. What is specified about this tactic is the fact that these states are ones where there will be a higher demand for the product, with Robins also mentioning that in the long term he hopes this could further tempt those states that remain unregulated into legislation.
What was not specified about the tactic was the fact that it also circumvents the operator having to deal with any state regulators that could potentially rally against the murky legality of sports events contracts, as many have. Regardless, this approach will prevent any worries of potential cannibalization as DraftKings' online sportsbook will, evidently, in no way compete with its prediction market offerings - at least for the time being.
Robins further underlines that, during the process of its Railbird acquisition, DraftKings worked closely with regulators and gleaned a clearer picture of "where the sensitive areas are, so we know where to avoid." It would appear, then, that tackling unregulated states provides both the safest regulatory route with added consumer demand for sports events contracts - as Robins highlights that incremental investment into prediction markets during 2026 will be tangible, but measured, with OSB and iGaming investment subject to a "possible reduction" over the next 12 months.
ESPN & Spanish outlook
Other major company news this week came in the from of DraftKings' newly announced ESPN partnership, following the sports network's unceremonious dropping of its previous partner, Penn Entertainment, like a child in favor of a new toy.
Regardless of what is now the past, Robins' excitement for the future is evident. Indeed, he emphasizes that DraftKings and ESPN have a decades-worth of collaborative history from the early sports betting and fantasy sports days. He further outlines the vast versatility of ESPN's portfolio, especially around their powerful app, fantasy database, channels, brands and talent - which the operator now plans to "leverage across everything we do."
Speaking directly on the partnership, Robins stated: "A partner like ESPN is someone who can help advertise and engage your existing customers as well as helping onboard new ones, their trajectory is high, they are always searching for new deals, new apps, new launches. Being with a company that is aggressive and wants to grow allows you to grow alongside them."
Another notable update from the operator was the outlining of plans to introduce a Spanish language app functionality to DraftKings' online sports betting offerings. Indeed, this idea stemmed from the imminent arrival of the World Cup 2026 in North America, a fact which then made DraftKings realize that there is a wider customer acquisition opportunity there - as so many US citizens are Spanish-speaking first.
DraftKings' main competitor, FanDuel, is set to release its Q3 financial results next week ahead of its own planned entry into the prediction market space
