DraftKings is making a significant commitment to prediction markets, in the company’s Q1 earnings call held on Friday, CEO Jason Robins announced that DraftKings plans to invest between $200 million and $300 million into prediction markets through 2026 as it strategically expands its presence in this burgeoning sector. 

“A substantial portion of that investment will be focused on marketing, along with product technology enhancements,” Robins stated during the discussion. He also emphasized that despite this large investment, the company anticipates that the rest of its operations will still generate over a billion in Adjusted EBITDA this year. 

DraftKings reported impressive financial outcomes for Q1, achieving $1.65 billion in revenue—a 17% increase from the previous year. Additionally, the company noted its second consecutive quarter of positive net income. The focal point of the earnings call, however, was “DraftKings Predictions,” the company’s evolving prediction market platform. 

“At our Investor Day in March, we outlined a clear vision: one nationwide Super App to excel in sports,” Robins remarked. “Predictions is now fully integrated into our flagship app.” According to Robins, the integration has proven beneficial, as the customer acquisition cost for predictions dropped by more than 80% in April