DraftKings (DKNG) 54th Nasdaq London Investor Conference summary

Industry trends and market dynamics

• Net revenue grew significantly despite modest handle growth, driven by improved margins and promotional efficiency.

• Prediction markets are not materially cannibalizing revenue but are impacting handle, especially among professional and institutional bettors.

• World Cup is expected to drive substantial engagement and serve as a testing ground for new marketing and product strategies.

• National marketing efforts are being optimized to reach all U.S. consumers, regardless of state regulations.

• Sportsbook handle is projected to grow at single digits, while revenue growth should outpace handle growth.

Product innovation and technology

• Prediction market product has rapidly evolved since its MVP launch, with ongoing improvements and the rollout of an internal exchange and market-making capabilities.

• AI and machine learning are deeply integrated across the business, enhancing engineering velocity, customer service, and internal processes.

• AI adoption is company-wide, with a focus on efficiency and freeing up employee time for higher-value tasks.

• Product innovation remains a core strength, with new features and customer experiences continually being developed.

Regulatory and legal landscape

• Supreme Court is likely to rule on prediction markets by late next year or early the following year, potentially catalyzing further state-level legalization of online sports betting.

• States like Georgia and California are showing progress toward legalization, with tribal partnerships being key in California.

• The emergence of prediction markets is prompting some previously skeptical stakeholders to reconsider their positions.

• iGaming legalization is gaining momentum, with several states showing increased interest due to budget pressures.