DraftKings raises 2026 Predictions investment to $700m and models sports-contract exit
DraftKings said in its third-quarter materials that it increased its 2026 adjusted EBITDA investment in Predictions by $50m to $700m. Its downside model assumes sports event contracts end on 31 July 2028 and that Predictions customers then generate 20% of current gross profit; the model extends payback from 18 months to 41 months.
Investors can assess how ending sports event contracts could extend Predictions’ modeled payback as customer gross profit falls.