DraftKings announced during a Monday investor webcast that it plans this month to integrate its gambling platforms under one so-called “super app.”
DraftKings expects to launch the unified app — containing its sportsbook, prediction market, online casino, and lottery offerings — in time for the beginning of the NCAA Men’s Basketball Tournament, which begins on March 17. Its daily fantasy products will remain separate.
DraftKings co-founder and CEO Jason Robins (pictured below) touted the company’s digital entertainment approach — and capabilities, he asserted — in validating the super app decision.
“Megatrends are absolutely exploding in digital entertainment,” he said during the presentation. “DraftKings stands to benefit from what will, for many years, be continuing engagement with sports, entertainment, interactive, mobile, and many other things that are really, truly lined up for DraftKings to capitalize on this coming generation of consumers.”
The company on Monday also outlined an “expanded” growth strategy and long-term financial framework. DraftKings anticipates a $55 billion to $80 billion “gross revenue opportunity” in the legal gambling market in the United States by 2030.
Keys to exploiting this opportunity, according to DraftKings:
- Increased use of artificial intelligence
- Legalization of online casino expanding past the current eight states
- Growth of prediction markets and sports event contracts
- Creating its own market-making division to support DraftKings Predictions
The investor announcement comes during a brutal stretch for DraftKings stock. Lower-than-expected revenue results and earnings caused a price plunge, with prediction market competitor Kalshi surpassing the Boston-based company in valuation.
From a Seeking Alpha analyst note: “The Super App introduction could be considered a competitive threat to FanDuel (FLUT), BetMGM (MGM) (GMVHF), Kalshi (KALSHI), and Polymarket (POLYMARKET).”
Predictions, lottery moving where bettors are
Robins said that DraftKings Predictions will benefit from being housed in the same place as its sportsbook and casino apps, thanks to the customers already there. He said that “80-to-90%” of the company’s customers use the app in any given year.
“We will now have a sports product everywhere for customers across the entire country,” Robins said. “Number two, it allows us to leverage our huge scale with our brand and marketing footprint. All of our national marketing now will be working across the entire country, instead of across a subset of states where we have sports betting.”
The user experience will depend on local legality. Customers in California, for example, will not be able to wager on the sportsbook, because sports betting is not legal there, but could use the prediction market.
In a presentation that leveraged star power to the hilt, trotting out the likes of DraftKings Special Advisor Cal Ripken Jr., and content partner Dave Portnoy, encapsulated the super app in a video snippet. “Wait, you’re telling me I’m gonna be able to bet sports in New York, trade in L.A., play casino in Philly, play Powerball all in one app? I’ve never heard of anything like that.”
DraftKings offers a lottery product through its ownership of the Jackpocket third-party lottery courier app.
Predictions general manager Jeanine Hightower-Sellitto said prediction markets represent a $10 billion gross revenue opportunity. This, she therefore promised, would be no “side app.”
“The ‘super app’ is a distribution breakthrough, but what makes this business structurally attractive is vertical integration. We intend to own more of the prediction stack, so we control the end-to-end customer experience and the economics that come with it,” she said. “That means faster innovation velocity, better unit economics, and greater control over quality as we scale.”
A Wall Street analyst estimated that DraftKings would spend $400 million to boost its prediction market status in 2026.
Now what? DraftKings Predictions the future
Hightower-Sellitto described DraftKings launching its own futures commission market (FCM) or derivatives clearing organization (DCO) as key to growth. The company currently offers prediction market wagering essentially like a vendor as an introducing broker (IB) through partnership with CME Group and Crypto.com. In October, DraftKings purchased Railbird, a designated contract market (DCM) licensed by the Commodity Futures Trading Commission (CFTC), but that company has yet to launch a prediction market.
DraftKings, she added, plans to deploy a dedicated market-making division in the next few months, “because bringing our own liquidity to market is how we will deliver tighter pricing and a more consistent customer experience.”
By the beginning of the next NFL season, the most profitable period of sports betting business calendars, Hightower-Sellitto said the company will develop “an industry-leading sports predictions experience and scale it profitably from there,” as much as 10-30% as compared to the sportsbook, she said, because of the relative absence of gate-gaming tactics and long-term promotions.
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