DraftKings reported weaker second-quarter revenue even as more customers placed bets and used its platform. Favorable sports results for bettors and heavier promotional spending to attract new users reduced the online gambling company’s revenue and profitability during the quarter.
The Boston-based operator posted revenue of $1.44 billion for the three months ended June 30, down 5% from $1.51 billion a year earlier. The company said bettor-friendly outcomes and increased promotional reinvestment tied to customer acquisition across its Sportsbook and Predictions products were the main reasons for the decline.
Customer activity, however, continued moving higher. Sports Consumer Volume, which measures settled wagers and trades across Sportsbook and Prediction Markets, climbed 15% year over year to $13.1 billion from $11.5 billion. Monthly Unique Payers rose about 9% to 3.6 million, although average revenue per monthly payer dropped 13% to $132 because promotions and favorable betting outcomes reduced revenue generated from each customer.
DraftKings doubles down on Predictions as second-quarter results show decline
DraftKings also swung to a net loss attributable to common stockholders of $67.6 million after reporting net income of $157.9 million in the second quarter of 2025. Adjusted EBITDA declined to $114.6 million from $300.6 million a year earlier.
Across its business lines, sports revenue fell 10.6% to $891.9 million, while iGaming revenue increased 7.5% to $461.9 million. Other revenue rose 5.2% to $89.4 million, and the sports net revenue margin narrowed to 6.8% from 8.7%.
“We delivered a strong second quarter and enter the back half of the year with real momentum, as our core business grew across handle, users, and engagement,” said Jason Robins, DraftKings’ Chief Executive Officer and Co-founder. “Our Super App is now live nationwide, and Predictions is already growing faster than we anticipated. The similarity of Predictions customer metrics to Sportsbook customer metrics, our advantaged LTV position, and our playbook to innovate on a leading Predictions offering all underpin our confidence that we can win the category this NFL season and beyond.”
The emphasis on Predictions has grown steadily this year. In first-quarter results, DraftKings reported its first quarterly profit of 2026 and said stronger sportsbook margins were giving it room to invest in prediction markets while expanding its broader Super App strategy.
Chief Financial Officer Alan Ellingson said the company continues to expect its core business to generate about $1 billion in adjusted EBITDA this year, giving it flexibility to invest in its Predictions business.
“Our core business remains on track to generate approximately $1 billion of Adjusted EBITDA this year, providing us with financial flexibility to invest behind the significant opportunity that we are seeing in Predictions,” Ellingson said. “Therefore, we are maintaining our fiscal year 2026 guidance for revenue of $6.5 billion to $6.9 billion and Adjusted EBITDA of $700 million to $900 million.”
The company left its full-year guidance unchanged. It has also continued expanding its federally regulated prediction markets business through Railbird Exchange, which recently filed sports event contract certifications with the Commodity Futures Trading Commission.
At the same time, the strategy faces legal scrutiny, with two proposed class-action lawsuits alleging the Predictions platform functions as an unlicensed sportsbook. DraftKings currently operates mobile sports betting in 27 states, Washington, D.C., and Puerto Rico, while iGaming is available in five states and its Canadian business reaches provinces representing about 51% of the country’s population.
Featured image: DraftKings
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