On June 9, DraftKings‘ shares increased by 7.6% (to $26.66), indicating the companys strong growth in its prediction markets business.
In May, DraftKings traded $3.1 billion on its predictions platform, up 34% from the previous month. Consumer trading volume was $1.3 billion in May, or 24% more than April.
This news supports how DraftKings is trying to create one platform for all of its products: sportsbooks, lotteries, gaming and predictions.
Additionally, DraftKings mentioned that they have integrated their prediction markets into their flagship app. This has cut customer acquisition costs for predictions by more than 80% as of April.
Chief executive officer and co-founder Jason Robins said:
We’re not waiting for the game to come to us with DraftKings Predictions, we’re playing offense. We are continuing to broaden the ways customers can engage with DraftKings sports experiences across the country. The growth in prediction markets volume comes alongside a strong core business. Predictions is now live in our flagship app, and as a result, our Predictions customer acquisition cost declined more than 80% in April.
The developments in prediction markets coincide with strong financial results for DraftKings. First-quarter revenue was $1.65 billion, an increase of 16.8% from last year. Adjusted EBITDA for the first quarter was $167.9 million, up 63.7%. DraftKings also reported a net income of $21.1 million versus a net loss of $33.9 million during the same period last year.
