Drive by DraftKings plans to increase its focus on real-money gaming through its second fund, the firm said in a strategy update. The fund will target infrastructure, new entertainment formats and mobile-native game studios, building on investments including Papaya, Picklebet and Triumph.
The fund’s stated priorities may direct investment towards real-money gaming infrastructure and new game formats.
Quarter ended 30 September 2026
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DraftKings told federal lawmakers on 5 November that it had sent one personalised video from New York Knicks player Miles McBride to a customer. The company said it does not target people based on indicators of problem gambling or use AI to tailor promotional offers to customers’ gambling activity. The response followed a congressional inquiry into operators’ loyalty programmes, VIP practices and AI use.
DraftKings told federal lawmakers it had sent a personalised video featuring New York Knicks guard Miles McBride to a customer, in response to an inquiry into betting operators’ practices. The company said its loyalty team was aware of sending one such video and did not generally use personalised content from athletes or celebrities as a customer incentive.
DraftKings chief executive Jason Robins said the operator was roughly level with FanDuel for US sports betting in the third quarter. DraftKings reported $13.9bn in sports consumer volume, including sportsbook and prediction-market activity, while Flutter reported about $12bn in US sportsbook handle; Citizens analysts put DraftKings ahead across 13 states and Washington, DC, in September, with 37.4% handle share against FanDuel’s 34.2%.
DraftKings was essentially tied with FanDuel for the sports betting industry’s top spot this quarter, chief executive Jason Robins said.
DraftKings expects adjusted EBITDA investment of up to $1.05bn in its Predictions business across 2026 and 2027. The company budgeted $650m–$700m for 2026 and $250m–$350m for 2027; former lottery finance executive Ivan Soloviov said the first half of 2027 would better show whether customers remain active after promotions end.
DraftKings expects its prediction markets expansion to absorb up to $1.05bn in adjusted EBITDA across 2026 and 2027. The November 5 earnings presentation budgets $650m to $700m for Predictions in 2026 and another $250m to $350m the following year.
DraftKings reportedly notified affected employees of staff cuts the week before its third-quarter results; the company declined to comment on personnel decisions. The number of affected employees is unknown, while DraftKings reported third-quarter revenue of $1.33bn and lowered its 2026 adjusted EBITDA forecast to $175m-$275m.
DraftKings reportedly notified employees of job cuts last week, days before presenting its third-quarter results. The number affected is unknown, and DraftKings has not disclosed a figure. A company spokesperson declined to comment on personnel decisions.
DraftKings CEO Jason Robins said he would be surprised if the company’s 2027 investment in prediction markets exceeded the $300m midpoint of its plan. He said DraftKings would monitor court rulings and adjust spending, and described non-sports event contracts as a “hidden gem”.
DraftKings' CEO would be surprised if its 2027 prediction-market investment exceeded the $300m midpoint of its plan. Jason Robins said the group would track court rulings and adapt its spending, and saw an overlooked opportunity in non-sports event contracts.