DraftKings (DKNG) MoffettNathanson's 2026 Media, Internet & Communications Conference summary

Industry trends and strategic positioning

• The business is leveraging its core competencies and data-driven approach to navigate a dynamic, highly regulated environment, with a founder-led mentality driving problem-solving and execution across fantasy, Sportsbook, iGaming, and now prediction markets.

• Prediction markets are seen as a major growth opportunity, closely aligned with existing strengths, and are being integrated into a super app to expand reach and engagement.

• The competitive landscape is rational, with strategic partnerships with major media companies and leagues enhancing brand visibility and customer acquisition.

• National advertising is becoming more effective as the super app enables broader reach, especially in states previously inaccessible to Sportsbook products.

• Regulatory clarity is improving, with active engagement from the CFTC and ongoing dialogue with states to align frameworks and support responsible gaming.

Financial outlook and investment plans

• A $200–$300 million EBITDA impact from prediction markets is projected for 2026, with future investment decisions guided by customer acquisition cost models and data-driven analysis.

• The company is focused on leveraging existing technology and infrastructure to efficiently scale prediction markets, with marketing spend ramping up around major sporting events like the World Cup and NFL season.

• Revenue streams in prediction markets will evolve as the company owns more of the tech stack, allowing greater capture of the economics across brokerage, exchange, and market making.

• Prediction markets are expected to deliver higher margins than Sportsbook, with optimism for significant TAM expansion, though current revenues remain small compared to traditional Sportsbook.

• Capital allocation prioritizes core business growth and prediction market expansion, with disciplined M&A and opportunistic shareholder repurchases as secondary considerations.

Product innovation and customer engagement

• Product development focuses on expanding market offerings and flexibility, with recent launches like Combos and integration of Railbird Exchange enhancing the prediction product suite.

• Data and analytics from existing products provide a competitive advantage in pricing, risk modeling, and customer engagement, creating a strong moat against new entrants.

• Media partnerships with ESPN, NBC, and Amazon drive user acquisition and engagement, with national advertising delivering greater efficiency as the product becomes available in more states.

• Marketing spend is shifting from local to national, reducing customer acquisition costs and supporting broader reach.

• In-house game studios enable unique product offerings and cost savings, differentiating the iGaming portfolio and supporting customer retention.