With a record-breaking $1.65 billion in Q1 revenue, DraftKings (NASDAQ: DKNG) is formally abandoning its "sportsbook-only" veneer as its unified "Super App" approach starts to unify the market under one dominant roof.

DraftKings Predictions, the company's prediction markets platform, is now included in the operator's comprehensive mobile application, which was unveiled in March and contributed to a decrease in April prediction market client acquisition expenses of almost 80%.

"Within Predictions, we have more than doubled markets available to trade, which is driving Predictions volume per customer above Sportsbook handle per customer,” wrote CEO and co-founder Jason Robins in his quarterly letter to shareholders. “In April, our annualized Predictions consumer volume exceeded $1 billion, and our annualized total volume traded exceeded $2.3 billion, an increase of 38% and 43% month-over-month, respectively.”

The gaming company's prediction market platform was introduced in December of last year, and its market-making operation is already yielding favorable results.

“We have also launched market making, which unlocks access to an additional layer of the value chain. Market making is already generating a positive return for us,” adds Robins. “In the coming weeks, we expect to launch our proprietary exchange and to begin offering combos.”

For parlays, the term "combo" refers to the prediction market.

Q1 Report

With non-GAAP earnings per share of 20 cents, which above the average forecast of 17 cents, DraftKings' first-quarter results were strong. $1.65 billion in revenue exceeded Wall Street projections by $20 million.

Average revenue per monthly unique player (ARPMUP) increased 21% year over year thanks to increased sportsbook net revenue margins. During the quarter, the corporation also bought back $99 million worth of its shares.

Boston-based DraftKings continued to project $6.5 billion to $6.9 billion in sales and $700 million to $900 million in adjusted EBITDA in 2026. An intriguing side note: according to DraftKings, jurisdictions that forbid sports betting account for 69% of the volume of the sports prediction market.

Sports Event Contracts Present a Huge Opportunity for DraftKings

Although there is disagreement over how long sports derivatives can sustain the prediction markets sector, the truth is that event contracts currently make up a sizable portion of volume on yes/no exchanges, and even tho that percentage may eventually decline, sports will continue to be significant to the sector.

This is advantageous for DraftKings, which may be able to boost its market share in the prediction markets sector by utilizing its well-established sportsbook skills. Robins points out that favorable results for operators depend on "compelling markets, pricing, liquidity, trust, and a seamless customer experience," regardless of whether it's a typical sports wager or an event contract.

The CEO of DraftKings notes that the operator will start disclosing its sports income, which will comprise sportsbook and predictions, in the third quarter. This might provide investors and analysts with a clearer picture of DraftKings' substantial earnings before interest, taxes, depreciation, and amortization (EBITDA) potential set.

This is advantageous for DraftKings, which may be able to boost its market share in the prediction markets sector by utilizing its well-established sportsbook skills. Robins points out that favorable results for operators depend on "compelling markets, pricing, liquidity, trust, and a seamless customer experience," regardless of whether it's a typical sports wager or an event contract.

The CEO of DraftKings notes that the operator will start disclosing its sports income, which will comprise sportsbook and predictions, in the third quarter. This might provide investors and analysts with a clearer picture of DraftKings' substantial earnings before interest, taxes, depreciation, and amortization (EBITDA) potential set.