DKNG changes
Pick any two versions below to diff them.
- Price
- $19.31 → $20.53(+6.3%)
- Discount
- 42% to 57% → 38% to 54%(−4.0 pts)
- Risks
- Prediction markets offer sports event contracts in many states without state licenses or state betting taxes. If federal rules let them operate everywhere, they can take customers and lower the value of DraftKings' state licenses. Courts disagree, and the Supreme Court was asked in September 2026 to decide. Spending on Predictions, promotions and advertising lowers profit. Adjusted EBITDA fell 62% in Q2 2026, and Jefferies expects an adjusted EBITDA loss in Q3 2026. Rivals such as Fanatics and the prediction markets plan large advertising budgets for 2027. Sports outcomes change results each quarter. Customer-friendly outcomes lowered revenue in Q2 2026, and Susquehanna flagged weak sports betting margins in October 2026. States can raise betting taxes or add rules on gambling ads and responsible gaming. Quartz reported in September 2026 that the Massachusetts Gaming Commission is looking into how DraftKings used AI to target customers who lose money. On October 15, 2026, Louisiana extended the DraftKings license only for four months, with conditions that include answers on its AI use, and a press report said that the FTC started an early review of sportsbook ads. iGaming growth slowed. Jefferies said that iGaming grew 5.4% in Q2 2026, which can be the slowest pace in DraftKings' history.
- Checkpoints
- Nov 6, 2026 (estimate): Q3 2026 results: Predictions spending and the 2026 outlook. Pending. Watch: A kept 2026 outlook of $700 million to $900 million of adjusted EBITDA and growing Predictions volume pass; a lower outlook or a larger Predictions loss fails. Feb 18, 2027: Louisiana license renewal hearing. Pending. Watch: A full renewal of the Louisiana license passes; a refusal, or new conditions that limit marketing or products, fails. Feb 2027 (estimate): Full-year 2026 results and 2027 outlook. Pending. Watch: A 2027 outlook with adjusted EBITDA near $1 billion or more passes; an outlook with more Predictions losses and lower profit fails. Q2 2027 (estimate): Court and regulatory decisions on sports prediction markets. Pending. Watch: Rulings that let states require licenses for sports event contracts pass; a federal ruling that lets prediction markets offer sports contracts in every state fails.
- Recent events
- 2026-10-16: The NBA told its partner sportsbooks to stop some bets from the 2026-27 season. The list includes parlays of unders on the same player, opening tip bets and first basket bets. 2026-10-15: The Louisiana Gaming Control Board gave DraftKings a conditional four-month extension of its sports betting license, which ends on November 10, 2026. The full renewal hearing is set for February 18, 2027. The board asked for written answers on how DraftKings uses AI, on prediction markets and on missing suitability filings of some large shareholders, with six other conditions. The board said that news reports are not findings of violations. 2026-10-15: Jefferies kept its Buy rating and cut its 2026 adjusted EBITDA estimate by 15% to $577 million. It expects about $100 million more spending on Predictions in the second half of 2026 than the plan of $200 million to $300 million, and an adjusted EBITDA loss of $67 million in Q3 2026. It said that DraftKings is now the third-largest US prediction exchange by volume. 2026-10-13: The Washington Sun reported that the FTC started an early review of online sportsbooks, such as DraftKings and FanDuel, with a focus on possibly misleading ads. The FTC did not comment, and the companies said that the FTC had not contacted them. 2026-10-05: Bank of America upgraded DraftKings to Buy and said that prediction markets can be an opportunity for sportsbooks. The stock rose about 5%. 2026-10-02: Fanatics said that it plans to spend up to $1 billion on betting ads in 2027. DraftKings and FanDuel's parent Flutter fell to new multiyear lows, as reports said that Kalshi seeks a valuation of about $40 billion. 2026-09-23: DraftKings' audit committee dismissed BDO as auditor, effective after the 2026 audit, and appointed Deloitte for 2027. 2026-08-28: The US Court of Appeals for the Ninth Circuit ruled that sports event contracts are sports bets and not swaps. The ruling lets Nevada treat sports prediction markets as unlicensed sportsbooks, and it rejected appeals by Kalshi and Crypto.com. DraftKings stock rose nearly 10%. 2026-08-25: DraftKings closed a $700 million senior secured term loan due 2033 at SOFR plus 2.00%, mainly to buy back part of its convertible notes due 2028. It also replaced its $500 million revolving credit facility with a $750 million facility due August 2031. 2026-08-06: DraftKings reported Q2 2026 results. Revenue was $1,443 million, down 5%, because of customer-friendly sports outcomes and more promotions for Sportsbook and Predictions. Sports betting volume rose 15% to $13.1 billion, and monthly unique payers rose 9% to 3.6 million. Adjusted EBITDA was $115 million against $301 million a year earlier, and the net loss was $68 million. DraftKings kept its 2026 outlook. 2026-06-09: DraftKings said that annualized consumer volume in Predictions grew 24% from April to May 2026, to $1.3 billion.