DraftKings Q3 earnings: Modeling a prediction markets downside plan
Photo: SBC Americas
KEY TAKEAWAYS DraftKings nearly tripled its 2026 Predictions investment and published a model showing how that spending pays back if sports event contracts end before July 31, 2028. The downside model assumes a Predictions customer generates 20% of today’s gross profit once sports contracts disappear, which stretches payback from 18 months to 41 months. The company leans on cross-sell into non-sports markets, Pick6 and Lottery to cover the gap, though more than four in five Predictions customers have only traded sports to date.
Source: SBC Americas
