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DraftKings launches CFTC-regulated DKeX prediction exchange
The company aims to build a higher-margin revenue stream worth about $800 million by 2027, while its sportsbook unit saw roughly a 4.6% year-over-year revenue decline to about $1.44 billion.
DraftKings has launched the DKeX prediction market exchange, a CFTC-regulated platform designed to expand beyond the seasonality that has historically weighed on its earnings, MarketBeat Ratings reports.
The outlet says the pivot targets event-driven contracts to support more year-round engagement, creating what it describes as a higher-margin revenue vertical with potential of about $800 million by 2027.
MarketBeat Ratings also points to pressure in DraftKings' legacy sportsbook model, citing about a 4.6% year-over-year revenue contraction to roughly $1.44 billion and noting sportsbook performance can swing with major seasonal events like the NFL schedule.
The article adds that investors are tracking the stock near 52-week lows, and it notes that Bank of America upgraded DraftKings from Neutral to Buy while keeping a $27 price target.