DraftKings’ Co-Founder and CEO, Jason Robins, underlined the potential for prediction markets to drive the legalization of iGaming and sports betting in the US in the company’s Q3 2025 earnings letter.
The update discussed Robins’ plans to launch the new DraftKings Predictions platform “in the coming months”. The company’s expected sports events contracts platform will complement DraftKings’ existing sportsbook offerings, with Robins describing it as a “significant incremental opportunity” for the company.
The product is set to initially launch in US states where DraftKings does not yet operate a sportsbook. Robins explained, “We plan to focus on the states where we do not offer Sportsbook, which also is where we believe the vast majority of the financial opportunity exists.”
According to Robins, the rollout could expand DraftKings’ total addressable market by entering US states through sports event contracts, opening new customer bases and revenue streams. He also noted that around half of the country’s population still lacks access to regulated online sports betting, although several competitors already offer federally regulated prediction platforms across the US.
Robins stated that DraftKings’ expertise in areas such as customer acquisition, product development, and regulatory compliance, combined with strategic partnerships with ESPN and NBCUniversal, sets the company up to successfully compete in the growing predictions market.
Beyond DraftKings Predictions, DraftKings is also seeing growth across other areas of the business. Robins wrote that the company expects to generate between $5.9 billion and $6.1 billion in revenue in 2025, alongside between $450 million and $550 million in positive adjusted EBITDA.
The CEO revealed that DraftKings’ NFL handle has risen 13% 13% season-to-date, and its NBA handle has increased 19% season-to-date. That momentum has continued into the start of Q4, with total sportsbook handle rising 17% year-on-year in October.
In addition, iGaming net revenue grew 25% year-on-year in Q3, marking the company’s fastest growth since Q1 2024.