DraftKings Could Adjust Predictions Spending Based on Courts

Dow Jones11-07 00:42

1142 ET - DraftKings doesn't plan to exceed its spending estimates for the year ahead, unless there is a change in the regulatory environment, Chief Executive Jason Robins says on a call with investors. The company is spending more to ramp its prediction markets offering, which is available in states where its sportsbook hasn't been. It is marketing aggressively to stay competitive with new entrants such as Kalshi and Polymarket. Robins says the marketing budget in current guidance is "pretty healthy." However, he adds that if something changes within the legal system to add more certainty that prediction markets will remain legal or will be banned, DraftKings would increase or pull back on spending accordingly. Shares are down 26%.

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