Overview
- DraftKings disclosed that its May Predictions metrics rose sharply, with annualized consumer volume up 24% to $1.3 billion and annualized total traded volume up 34% to $3.1 billion, and the company described those figures as preliminary and unaudited.
- The May update, which the company filed with the SEC on Tuesday, pushed DraftKings shares higher and sparked heavy options buying, with unusually high call activity reported that day.
- Wall Street stayed positive after the disclosure, as firms including TD Cowen and UBS kept or raised bullish ratings and price targets while highlighting DraftKings’ profitable sports-betting and iGaming base as the funding source for the expansion.
- Prediction market “volume” counts the dollar value of all contracts exchanged, including repeat trades, which differs from sports-betting handle that measures money actually risked and can make notional volumes look larger than funds at play.
- DraftKings is rolling Predictions into a wider super app and has live contracts in 38 states with sports-event contracts in 17 states, and the company’s next moves on CFTC filings and independent verification of its metrics will determine how quickly the product can scale nationwide.