DraftKings is in talks to acquire Railbird, a regulated prediction market platform, signaling its expansion into a growing industry. Railbird allows trading contracts on real-world events and received CFTC approval in June. DraftKings aims to diversify revenue streams beyond sports betting and attract new user demographics.

In Q1 2025, DraftKings reported $1.41 billion in revenue, up 20% year over year. Sportsbook handle increased 16% to $13.9 billion. The company’s structural hold percentage improved to 10.4%, driven by enhanced product offerings.

DraftKings revised 2025 guidance to $6.3 billion in revenue and $850 million in adjusted EBITDA. It continues expanding AI capabilities and disciplined capital allocation. Analysts project revenue to reach $11.3 billion in 2029, with stock potentially tripling in value.

Wall Street expects DKNG stock to benefit from economies of scale, with an average price target of $54. Out of 30 analysts, 25 recommend “Strong Buy.” DraftKings plans to integrate Jackpocket, providing additional user engagement opportunities and diversification beyond traditional sports betting.

Read more at Yahoo Finance: As DraftKings Weighs Entry into Prediction Markets, How Should You Play DKNG Stock?