DraftKings Ends 2025 on High Note, Excited About Future of Prediction Markets

• DraftKings reported a 43% increase in Q4 revenue compared with Q4 2024 revenues
• DraftKings experienced record revenues and adjusted EBITDA for the quarter
• Jason Robins, DraftKings’ Chief Executive Officer and Co-founder, said prediction markets are most exciting opportunity since PASPA repeal

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DraftKings closed 2025 on a “high note,” according to company leaders, reporting record revenues and adjusted EBITDA in the fourth quarter.

DraftKings reported Q4 2025 revenue of $1.98 billion, an increase of $596 million, or 43%, when compared with the $1.39 billion during the fourth quarter of 2024. For the year, DraftKings increased revenue 27% to more than $6 million and repurchased 16 million shares. Additionally, DraftKings Predictions represents a new growth opportunity that has most in the company excited for its potential.

“We closed 2025 on a high note. Fourth quarter revenue increased 43% year-over-year and we achieved records for revenue and Adjusted EBITDA. Our core business is strong as we enter 2026,” said Jason Robins, DraftKings’ Chief Executive Officer and Co-founder. “We also see a massive, incremental opportunity in DraftKings Predictions. We plan to deploy growth capital to build the best customer experience in Predictions, and acquire millions of customers. We have the playbook to execute and win.”

Looking to Prediction Markets

During today’s Q4 earnings call, Robins expressed optimism regarding DraftKings Predictions, which the company launched on Dec. 19.

Prediction markets, Robins said, represents the most exciting new growth opportunity for the company since PASPA was struck down in 2018. Predictions represents a potential $10 billion annual gross revenue opportunity moving forward, he said.

Through the Super Bowl, DraftKings Predictions had the second most downloads in its category and delivery three-times its prior record for daily trading volume, Robins reported.

“We intend to lead the predictions category,” he said.

Moving forward, Robins said DraftKings will begin integration of Railbird in the middle of 2026 to “improve innovation velocity and strengthen customer economics by owning more of the stack.”

Sportsbook Activity Still Strong

DraftKings Predictions has yet to impact DraftKings sportsbook revenue, Robins said. Sportsbook revenue increased 30% year-over-year and handle increased 11% year-over-year as well. In the fourth quarter, revenue increased 64% year-over-year to $1.4 billion and handle growth increased to 13% year-over-year..

DraftKings launched its sportsbook product in Missouri in December. Adoption of its sportsbook offering in Missouri was higher than in any state launch in company history through the first two months, he said, while activity per customer has also been strong.

“In January, our Sportsbook handle increased 4% year-over-year, even after two consecutive months of sportsbook-friendly outcomes and as our parlay handle mix continued to surge,” he said.

In fiscal year 2025, sportsbook handle increased 11% year-over-year to $54 billion.

“We are proud to have generated positive net income in fiscal year 2025. For the year, we increased revenue 27% to above $6 billion, continued to grow Adjusted EBITDA, and repurchased 16 million shares,” said Alan Ellingson, DraftKings’ Chief Financial Officer. “We have built an efficient and powerful business model and are excited to share more detail at our virtual Investor Day on March 2nd.”

Looking Forward in 2026

DraftKings will continue to focus on the prediction markets moving forward into 2026. It introduced a fiscal year 2026 revenue guidance range of $6.5 billion to $6.9 billion and a fiscal year EBITDA guidance range of $700 million to $900 million.

However, DraftKings is assuming that state tax rates will remain constant to where they are currently. Two states, Arizona and Michigan, have already started to discuss the potential of raising its sports betting and/or iGaming tax rates in the new year.