DraftKings surges 4.3% on Crypto.com prediction markets deal
Partnership introduces first player-specific NFL and NBA contracts as betting platform expands beyond traditional sports wagering
DraftKings shares jumped 4.3% to $26.62 on Friday after the digital sports betting company announced a strategic partnership with Crypto.com | Derivatives North America to introduce the first player-specific NFL and NBA contracts to its prediction markets platform.
The expanded agreement will bring player performance metrics within NFL and NBA contests to DraftKings Predictions, marking a significant departure from traditional game-outcome wagering. The partnership also plans to extend prediction markets across soccer, MMA, golf, boxing, tennis, and the Olympic Games, with future expansions into culture, entertainment, and politics categories.
"This represents a meaningful expansion of our addressable market," said DraftKings in the announcement, noting that Crypto.com's role as a Commodity Futures Trading Commission-regulated derivatives exchange enables the rollout of federally regulated event contracts.
DraftKings Predictions, which launched on December 19, 2025, operates as a standalone application under CFTC oversight and offers sports contracts in 38 states—including major markets like California, Florida, Georgia, and Texas where traditional online sports betting remains illegal. This regulatory positioning provides the company access to a broader customer base than conventional sportsbooks.
The stock's rally comes as DraftKings trades near its 52-week low of $26.23, down sharply from its February 2025 peak of $53.61. Despite the recent decline, Wall Street maintains an optimistic outlook, with 28 analysts rating the shares a "Strong Buy" or "Buy" and an average price target of $45.10, according to company data. That target represents roughly 70% upside from current levels.
Some analysts have trimmed expectations ahead of the company's fourth-quarter earnings report scheduled for February 12. Rothschild & Co reduced its price target from $37 to $35, while Stifel cut from $46 to $44, citing potential revenue moderation despite strong online sports betting volumes.
The prediction markets strategy, initiated through DraftKings' October 2025 acquisition of Railbird, aims to capture higher-margin event contracts and diversify beyond traditional sports betting. The company faces growing competition from platforms like Robinhood, which has partnered with Kalshi, and Crypto.com's own "OG" prediction market app.
The broader prediction markets landscape is undergoing regulatory scrutiny. The CFTC recently announced its intention to draft clearer rules for the sector, which could reshape the competitive dynamics between established players and emerging platforms. Analysts at MarketWatch noted that prediction markets are increasingly competing directly with traditional sportsbooks during major sporting events like the Super Bowl.
DraftKings reported $5.46 billion in trailing twelve-month revenue with $2.4 billion in gross profit. The company's quarterly earnings grew 184.6% year-over-year in the most recent period, though revenue growth moderated to 4.4%. Institutional investors hold 84.6% of shares outstanding.
The partnership with Crypto.com represents DraftKings' latest effort to differentiate itself in an increasingly crowded sports betting market. By leveraging prediction markets' regulatory advantages and expanding into new categories, the company is seeking to drive growth beyond the traditional sports wagering segment that has faced intensifying competition and maturing state markets.