DraftKings shifts focus to prediction markets, boosting Q1 revenue 17% and EBITDA 64% as it builds a sports super app.

DraftKings reported a 17% revenue increase to $1.65 billion and a 64% jump in adjusted EBITDA in Q1 2026, marking its second consecutive quarter of positive net income. The company is evolving beyond traditional sports betting by integrating prediction markets into its flagship app and developing a proprietary exchange, aiming to become a comprehensive sports "super app." This shift reflects the maturing sportsbook market, where competition now centers on infrastructure and product innovation rather than customer acquisition. DraftKings is also leveraging AI to enhance productivity and expects federal prediction market regulations to help expand beyond state-by-state betting restrictions, investing $200-$300 million in prediction initiatives this year.