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DraftKings will roll out a unified “super app” combining its sportsbook, online casino, prediction markets and lottery offerings under one platform by the start of March Madness, the company announced at its 2026 Virtual Investor Day on March 2.
The new product, branded DraftKings Sports & Casino, will operate through a single account and wallet. Access to each vertical will vary by state, depending on local regulations, but the app itself will be available nationwide. Daily fantasy sports will remain on a separate platform.
The Strategic Logic
The timing is deliberate. Phase one of the integration is scheduled before the NCAA Men’s Basketball Tournament, which opens on March 17, with further upgrades across the rest of 2026. DraftKings already routes 80% to 90% of its roughly 11 million customers through its primary app each year, giving the company a ready-made cross-sell engine once predictions and lottery sit alongside the sportsbook and casino.
“We now have a sports product everywhere for customers across the entire country,” CEO and co-founder Jason Robins told investors and media during the presentation. “We know how to drive traffic there. We know how to engage customers there. Now, we are going to have both sportsbook and predictions in this app.”
We now have a sports product everywhere for customers across the entire country. We know how to drive traffic there. We know how to engage customers there. Now, we are going to have both sportsbook and predictions in this app. — Jason Robins, CEO and Co-Founder, DraftKings
The company reported full-year 2025 revenue of $6bn and adjusted EBITDA of $620m, and set a long-term adjusted EBITDA margin target of at least 30%. DraftKings projected the industry-wide gross revenue opportunity at between $55bn and $80bn by 2030, driven by continued state-level legalization and the expansion of its predictions arm.
Predictions as a Margin Driver
Prediction markets sit at the centre of DraftKings’ growth case. Jeanine Hightower-Sellitto, Senior Vice President and General Manager of Predictions, told investors the company sees a $10bn annual gross revenue opportunity in the category. She projected adjusted gross margins on predictions running 10% to 30% higher than on the sportsbook, largely because sports event contracts are not subject to state gaming taxes.
That margin differential has direct implications for how DraftKings deploys capital. A Wall Street analyst cited in the presentation estimated the company would invest roughly $400m in its predictions product in 2026. The Q4 2025 earnings call had already signalled heavier near-term investment, contributing to a stock decline in the weeks before Investor Day.
The 2026 predictions roadmap laid out a clear vertical integration path. DraftKings currently offers sports event contracts through CME Group and, since earlier this year, through Crypto.com. The next steps include combination contract offerings (equivalent to parlays), the launch of an in-house market-making division, and the full activation of Railbird, the designated contract market DraftKings acquired and which is licensed by the Commodity Futures Trading Commission. Before the end of 2026, the company intends to operate its own futures commission merchant and derivatives clearing organisation, taking ownership of the full exchange stack.
“Launch, iterate fast and own the parts that really matter,” Hightower-Sellitto said of the approach to scaling the predictions vertical.
Launch, iterate fast and own the parts that really matter. — Jeanine Hightower-Sellitto, SVP and General Manager of Predictions, DraftKings
Since DraftKings launched its predictions platform in 38 US states in December 2025, the category has drawn significant industry attention. Kalshi reported $1bn in Super Bowl trading volume, a 2,700% increase year on year, and has since surpassed DraftKings in valuation. DraftKings’ super app is, in part, a competitive response to platforms like Kalshi that have built prediction market scale without a comparable sportsbook or casino customer base to cross-sell against.
Sports TAM and AI Investment
DraftKings projected its total addressable market for its combined sports platform, sportsbook and predictions, could reach $36bn by 2030, up from an estimated $17bn in 2025. The company said California, Texas and Florida are primary targets for its predictions offering, given the size of their populations and the current absence of regulated online sports betting.
On the technology side, DraftKings reported that AI automated and personalised $400m in promotional spend in 2025 through what it called “smart promotions,” and improved engineering hour productivity by 40% via AI-assisted code reviews. Customer service chatbot containment reached 100%, while customer acquisition costs declined more than 40% between 2020 and 2025.
With the super app in phase one launch by mid-March and Railbird’s full activation on the 2026 roadmap, the investor day served as DraftKings’ clearest statement yet that it intends to own the prediction market space through distribution advantages and internal infrastructure, not through standalone product competition.
Source: DraftKings
