DraftKings: Despite Prediction Markets, This Company Is Facing Revenue Declines

DraftKings faces existential pressure as prediction markets outpace traditional sportsbook offerings. DKNG remains a "Sell" despite a brief Q2 rebound; shares are down ~30% YTD and trade at a premium. Revenue and EBITDA are declining, with 1H EBITDA at $282 million, well below the FY26 guidance midpoint of $750 million. Competition from Polymarket, Kalshi, and Robinhood’s super app threatens DKNG’s relevance and future growth.

One theme has reigned supreme in the stock markets this year: out with the old, in with the new. Software stocks are considered old news; AI infrastructure stocks reign supreme. And in the gambling markets, sportsbooks are considered antiquated, while prediction markets are the talk of the