BOSTON, August 23, 2026, 01:02 EDT
- DraftKings finished Friday at $26.17, gaining 4.55% on the day and edging up 0.1% over the week.
- The sportsbook is currently promoting $150 in bonus bets following a qualifying bet of $5.
- Sales and marketing expenses increased by 38% in the second quarter, as the sports net revenue margin declined by 190 basis points.
- The upcoming week will reveal if NFL-season acquisitions are able to translate into sustained revenue per user.
DraftKings Inc. NASDAQ:DKNG wrapped up a turbulent week with little net movement as attention returned to its new-customer promotion and its impact on acquisition expenses. Shares finished Friday at $26.17, gaining 4.55% during the session but edging up just 0.1% from the previous Friday’s close. U.S. markets will remain shut for the weekend.
The main sportsbook promotion provides $150 in bonus bets following a qualifying $5 bet. This represents 30 times the initial amount as promotional credits, but these credits cannot be withdrawn and the original stake is not part of any payouts. The promotion ends Sunday at 11:59 p.m. EDT.
| Current offer | Qualifying action | Advertised reward | Delivery | Advertised ratio |
|---|---|---|---|---|
| DraftKings Sportsbook | $5 initial bet | $150 in bonus wagers | Six $25 bonuses distributed over 14 days | 30× qualifying bet |
| DraftKings Predictions | $5 transaction | $150 in prediction credits | Issued in $50 portions over 14 days | 30× qualifying transaction |
DraftKings’ economic cost is not reflected by face value. Credits that remain unused expire, and successful bonus bets exclude the promotional stake from returns. However, the promotion remains notable, as the company cited promotional reinvestment in Sportsbook and Predictions as a factor in its second-quarter revenue decrease.
| Second-quarter measure | 2026 | 2025 | Change |
|---|---|---|---|
| Sports consumer volume | $13.14 billion | $11.47 billion | +14.5% |
| Total revenue | $1.443 billion | $1.513 billion | −4.6% |
| Sports net revenue margin | 6.8% | 8.7% | −190 bps |
| Sales and marketing | $322.5 million | $233.2 million | +38.3% |
| Adjusted EBITDA | $114.6 million | $300.6 million | −61.9% |
The customer base increased in the opposite direction. Monthly unique payers climbed by roughly 9% to reach 3.6 million, but average revenue per payer dropped 13% to $132. The division illustrates that investors require data on retention and spending, rather than relying solely on registrations spurred by promotions.
Management reported gaining approximately 30% more customers than projected, while acquisition spending was around 10% higher than anticipated. The underlying customer-acquisition cost was about 25% lower than forecast. Whether this holds will be tested during the upcoming NFL season.
Chief Executive Jason Robins stated that the main business saw increases in “handle, users, and engagement.” DraftKings reaffirmed its 2026 outlook, expecting revenue between $6.5 billion and $6.9 billion and adjusted EBITDA ranging from $700 million to $900 million. Company release
| Session | Close | Daily move | Volume |
|---|---|---|---|
| Friday, Aug. 14 | $26.14 | up 2.83% | 8.89 million |
| Monday, Aug. 17 | $25.30 | down 3.21% | 8.74 million |
| Tuesday, Aug. 18 | $24.04 | down 4.98% | 8.71 million |
| Wednesday, Aug. 19 | $25.31 | up 5.28% | 6.85 million |
| Thursday, Aug. 20 | $25.03 | down 1.11% | 8.26 million |
| Friday, Aug. 21 | $26.17 | up 4.55% | 8.5 million |
A shift in financing took place on Friday. DraftKings finalized a seven-year term loan for $700 million at an approximate yield of 5.98%. The funds will go toward redeeming a portion of its convertible notes maturing in 2028. Additionally, the company has introduced a new $750 million revolving credit facility, replacing the previous one.
| Analyst | Date | Recommendation | Target | Upside from $26.17 |
|---|---|---|---|---|
| Citigroup | Aug. 11 | Buy | $32 | 22.3% |
| Macquarie | Aug. 11 | Outperform | $38 | 45.2% |
| JPMorgan | Aug. 10 | Overweight | $33 | 26.1% |
| Guggenheim | Aug. 10 | Buy | $33 | 26.1% |
| Benchmark | Aug. 7 | Buy | $30 | 14.6% |
The average price target suggests shares could climb 33.1% from Friday’s closing price. However, the lowest analyst target stands at $18. This disparity highlights the main debate: an effective acquisition might boost long-term value, but ongoing reinvestment may weigh on near-term margins.
Flutter Entertainment plc NYSE:FLUT, which owns FanDuel, is still the most relevant publicly traded peer. The company reported just a 2% rise in its U.S. handle for the most recent quarter, and management has also raised customer generosity. With competitors maintaining spend, cutting back unilaterally becomes more challenging.
Risks: A favorable run for NFL bettors may result in a reduced hold, while ongoing promotions may maintain high acquisition costs. The optimistic outlook becomes less convincing if payer numbers continue to climb but revenue per payer stays around $132, or if the sports margin does not rebound to last year’s 8.7% level.
The existing offer concludes late Sunday. Investors will want to monitor the new offer, initial NFL activity, and any changes in July’s reported handle momentum. These metrics will indicate if DraftKings acquired lasting users or simply boosted short-term participation.
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