DraftKings revenue falls despite betting growth as Predictions expansion accelerates

DraftKings reported a decline in revenue for the second quarter of 2026, despite an increase in betting activity. The company's revenue dropped to $1.44 billion, a 5% decrease from $1.51 billion in the same quarter last year. This decline was attributed to favorable betting results for customers and increased promotional spending aimed at attracting new users.

The sports betting segment saw a 10.6% decrease to $891.9 million, while iGaming revenue grew by 7.5% to $461.9 million. Despite the revenue decline, the company's customer activity continued to rise, with Sports Consumer Volume increasing by 15% year-over-year to $13.1 billion and Monthly Unique Payers growing by 9% to 3.6 million.

However, the average revenue per customer decreased by 13% to $132 due to promotions and favorable betting outcomes. DraftKings is doubling down on its Predictions segment, which has been growing faster than anticipated. The company remains optimistic about its core business and its investment in the Predictions market, maintaining its fiscal year 2026 guidance for revenue and Adjusted EBITDA.