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Brad Allen says DraftKings DKeX margins approach sportsbook levels

Business

Eilers & Krejcik Gaming analyst Brad Allen said DraftKings’ DKeX prediction market exchange is generating net revenue margins close to the company’s sportsbook levels. DraftKings’ broader sports unit recorded margins of 7.3% in the first half of 2026 and 6.7% in the first nine months; the company told investors it expects $650m to $700m in adjusted EBITDA investment in DraftKings Predictions.

The margin comparison gives investors a measure against DraftKings’ stated investment in its prediction business.

End-of-day close DraftKings (DKNG), USD, to 11 November 2026
Story date28 September 202611 November 2026

Latest reported results

DraftKings NASDAQ: DKNG

Quarter ended 30 September 2026

Revenue
USD 1.33bn10-Q filing 0001883685-26-000041
Operating income
−USD 493.1m10-Q filing 0001883685-26-000041

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