Investor Day showcases DraftKings’ plan to scale Predictions by leveraging built-in advantages in sports markets and taking control of its full exchange stack, including market making division.
DraftKings used its 2026 Investor Day on Monday to lay out its clearest vision yet for prediction markets, projecting a $10 billion annual gross revenue opportunity and detailing a vertically integrated strategy centered on nationwide distribution through its new “Super App” and deeper exchange control.
“We believe predictions could represent a $10 billion annual gross revenue opportunity in the years ahead, and we intend to lead in this category,” Jeanine Hightower-Sellitto, Senior Vice President and General Manager of Predictions at DraftKings, said during the presentation.
The company said it expects prediction markets to carry structurally higher margins than its traditional sportsbook, estimating adjusted gross margins could run 10% to 30% higher due to the absence of state gaming taxes and what it described as more limited long-term promotional intensity.
At the center of the strategy is DraftKings’ newly renamed DraftKings Sports and Casino “Super App,” which will bring together its sportsbook, DraftKings Predictions, its daily fantasy sports and online casino offerings, and its iLottery vertical Jackpocket into a single nationwide platform.
The company said the app will dynamically tailor the experience based on state availability, meaning customers will see the sportsbook where legal and event contracts nationwide, with sports-related prediction markets serving states where DraftKings does not have access to offer its traditional sportsbook. The Super App will also include DraftKings’ daily fantasy sports offerings alongside its casino and iLottery verticals where permitted, all within one unified interface.
“We will now have a sports product everywhere, for customers across the entire country,” DraftKings CEO Jason Robins said of the Super App.
DraftKings turns its sportsbook trading engine toward Predictions
Beyond distribution, DraftKings outlined plans to deepen its control over prediction market infrastructure, including the launch of a dedicated market-making division and continued buildout of its exchange stack. Zach Maybury, Chief Technology Officer at DraftKings, tied that effort directly to the company’s proprietary sportsbook trading engine.
“These same capabilities scale directly into Predictions as we launch our market making division, extending our pricing and trading edge into a new category,” he said. “It’s the same engine, solving a bigger set of problems.”
Maybury added that the company’s AI and machine learning systems, already used to sharpen sportsbook probabilities and adjust risk in real time, will also power Predictions pricing and liquidity. Hightower-Sellitto emphasized that liquidity will define the customer experience.
“In Predictions, liquidity is central to the experience. Tight, two-way markets, real depth, and fast updates are what customers feel and what drives customer attention,” she said.
DraftKings prepares to launch its own exchange in 2026
DraftKings plans to bring more of that liquidity in house while expanding its exchange footprint following its acquisition last year of Railbird Exchange, which operates as a Commodity Futures Trading Commission-approved Designated Contract Market (DCM) and Derivatives Clearing Organization (DCO). Over time, the company said it intends to build toward deeper vertical integration, including “in-house exchange technology” and, as it scales, “in-house FCM and clearing house components,” a move that would allow DraftKings to internalize more of the customer-facing trading and settlement infrastructure behind its event contracts.
Executives said the infrastructure buildout is central to how DraftKings Predictions will make money.
“The Super App is the distribution breakthrough, but what makes this business structurally attractive is vertical integration,” Hightower-Sellitto said. By owning pricing models, liquidity, and exchange infrastructure, and layering AI across trading, risk, and market monitoring, DraftKings argued it can improve spreads, increase fill rates, and drive higher long-term unit economics.
The company also attached a near-term milestone to the effort, eyeing the forthcoming NFL season as the first major test of its expanded predictions offering.
“By the start of the NFL season, we intend to deliver an industry leading sports predictions experience and scale it profitably from there,” Hightower-Sellitto said, positioning the upcoming season as a proving ground for what executives described as a more fully built-out Predictions offering.
DraftKings outlines 2026 roadmap for Predictions
DraftKings also presented a detailed “2026 Predictions Roadmap” outlining how it plans to evolve the product over the coming year.
The sequence begins with the initial launch of DraftKings Predictions in December 2025, using markets from CME Group, followed by expanded market offerings through Crypto.com and the rollout of combo-style offerings (akin to parlays) this year. From there, the roadmap moves into internal market making, the launch of its in-house DCM and, ultimately, internal FCM and DCO capabilities, signaling ambitions to control not just listings and pricing but also the brokerage and clearing functions.
The staged progression highlights how DraftKings views prediction markets as infrastructure to be progressively internalized.
“Launch, iterate fast and own the parts that really matter,” Hightower-Sellitto said, describing the company’s approach to scaling new verticals.
DraftKings applies sportsbook safeguards to Predictions
DraftKings also emphasized that its responsible gaming framework will extend fully to DraftKings Predictions through what it calls a Responsible Trading Center. The company said customers trading on DraftKings Predictions will have access to deposit limits, cool-off periods, self-exclusion tools, and educational resources similar to those available across its sportsbook and casino products.
“We believe responsible engagement shouldn’t depend on the product,” Lori Kalani, Chief Responsible Gaming Officer at DraftKings, said during the presentation. “It should be consistent across the entire DraftKings experience.”
While prediction platforms like Kalshi offer risk disclosures and certain trading controls, DraftKings’ approach more closely mirrors the structured responsible gaming systems developed in state-regulated sportsbook markets. By embedding deposit caps, break periods, and proactive messaging into Predictions from the outset, the company is positioning its event contract product within the same consumer protection framework as its core wagering business, a move that could carry regulatory and competitive implications as prediction markets continue to evolve.
DraftKings may hold an edge in sports-focused prediction markets
Executives argued that DraftKings’ combination of distribution, proprietary pricing infrastructure, and vertical integration gives it a structural edge in the emerging prediction market space. In sports-focused prediction markets, the company already holds a built-in advantage. DraftKings said 80% to 90% of its roughly 11 million customers engage annually within its primary app, giving it a large existing sports audience to cross-sell event contracts through the Super App without requiring users to migrate to a standalone platform.
Investors will be watching closely. DraftKings shares fell following its most recent earnings call after the company issued guidance that came in below some projections and outlined heavier near-term investment tied in part to initiatives like Predictions. Against that backdrop, Investor Day provided a more detailed explanation of how management expects those investments to drive long-term revenue growth and stronger margins.
If DraftKings can convert that existing sports base into sustained event contract activity, it could strengthen the case that prediction markets can scale alongside its core wagering business. If not, the company’s infrastructure-heavy buildout will face pressure to prove its economics in a sector that is becoming increasingly competitive.
Mike Breen
Mike Breen has been a professional writer and editor covering a wide range of topics for more than 30 years. He’s been a freelance gaming industry writer since 2020, reporting on sports betting, online casinos, and more for various Catena Media sites, and he began reporting on prediction market industry news in 2025 for Prediction News. Prior to that, Mike was a founding editor at his hometown altweekly newspaper in Cincinnati, Ohio, where he extensively covered local arts, music and news.Mike’s published writing has received recognition and several awards from organizations like the Society of Professional Journalists and the Association of Alternative Newsmedia.When Mike is not working, he enjoys playing and listening to music, attending comedy shows, watching movies, and spending time with his family and three cats.
