By Katherine Hamilton
DraftKings cut its full-year sales outlook as it invests more in prediction markets and expanding to new states.
The sports-betting company on Thursday lowered its full-year sales outlook to $5.9 billion to $6.1 billion, a decrease of about $300 million. The new guidance includes the financial impacts from launching mobile sports betting in Missouri later this year and its planned launch of a prediction markets app, the company said.
DraftKings posted a loss of $256.8 million, or 52 cents a share, in the quarter ended Sept. 30, compared with a loss of $293.7 million, or 60 cents a share, a year earlier.
Revenue rose 4% to $1.14 billion. Analysts surveyed by FactSet forecast revenue of $1.21 billion. Customer engagement and new customers drove sales higher, though customer-friendly sports outcomes offset some of that growth.
Monthly unique players increased 2% to 3.6 million. Average revenue per monthly unique player rose 3% to $106.
DraftKings acquired the prediction markets platform Railbird in October. It plans to launch an app called DraftKings Predictions where users can participate in prediction markets.
Earlier on Thursday, DraftKings said it would become the official sportsbook and odds provider for ESPN, and its platform will be included in ESPN's app. The deal marks an early end to ESPN's partnership with Penn Entertainment, which created the platform ESPN Bet.
DraftKings' stock has been under pressure in recent weeks as investors worry about rising competition from prediction markets. Prediction markets platform Kalshi has been creeping into the sports betting world, recently launching a parlay betting product, and Robinhood said Wednesday its prediction markets platform has doubled in volume every quarter since it launched last year.
Write to Katherine Hamilton at katherine.hamilton@wsj.com
(END) Dow Jones Newswires
November 06, 2025 16:54 ET (21:54 GMT)
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