BOSTON, August 22, 2026, 06:00 EDT
- DraftKings gained 4.55% on Friday to reach $26.17, beating the performance of the Nasdaq.
- A $5 bet offers $150 in bonus bets as part of a promotion running until August 23.
- The number of payers in the second quarter rose by 9%, while revenue per payer declined by 13%.
- Sales and marketing expenses rose 38% to reach $322.5 million.
DraftKings Inc. NASDAQ:DKNG rose 4.55% on Friday after coverage of welcome offers drove the brand onto Google Trends. The stock finished at $26.17, outperforming the Nasdaq Composite’s 0.43% increase.
The main concern for investors is the payback on acquisitions. Presently, promotions offer $150 in bonus bets to new users who place a $5 wager. This headline offer advertises a 30-to-one incentive, subject to wagering requirements, expiration terms and state eligibility.
According to updated promo trackers this week, six $25 bonus bets that cannot be withdrawn are issued across a 14-day period, expiring seven days after they are granted. The listed promotion concludes August 23 at 11:59 p.m. EDT. Terms may differ depending on the jurisdiction.
DraftKings reported a 9% increase in monthly unique payers in the second quarter, reaching 3.6 million. However, average revenue per payer declined 13% to $132. Management attributed the drop to customer-friendly outcomes and incentives for attracting new users.
| Customer and promotion economics | Q2 2026 | Q2 2025 | Change |
|---|---|---|---|
| Monthly unique payers | 3.6m | About 3.3m | +9% |
| Payer average revenue | $132 | $151 | -13% |
| Sales and marketing expenses | $322.5m | $233.2m | +38.3% |
| Sales and marketing as share of revenue | 22.4% | 15.4% | +6.9pp |
| Sports consumer spending | $13.14bn | $11.47bn | +14.5% |
| Sports-related revenue | $891.9m | $997.9m | -10.6% |
| Sports net revenue margin | 6.8% | 8.7% | -1.9pp |
The largest discrepancy is found between betting and revenue. Sports wagering volume increased by 14.5%, yet sports revenue declined by 10.6%. This 25.1 percentage point gap highlights how payouts and promotional offers can outweigh robust betting engagement.
Sales and marketing accounted for 22.4% of revenue for the quarter, rising from 15.4%. Adjusted EBITDA declined to $114.6 million, compared to $300.6 million previously. Net income turned into a loss of $67.6 million after reporting a profit of $157.9 million.
Chief Executive Jason Robins stated the main business “grew across handle, users, and engagement.” DraftKings maintained its 2026 revenue projection at $6.5 billion to $6.9 billion, with adjusted EBITDA guidance still at $700 million to $900 million. DraftKings
The sportsbook is active in 27 states, Washington, D.C., and Puerto Rico. According to DraftKings, these areas cover roughly 53% of the U.S. population. Access to promotions is more limited and depends on regional regulations.
Friday’s rebound lifted other gaming stocks as well. Flutter Entertainment plc NYSE:FLUT increased by 3.05%. MGM Resorts International NYSE:MGM advanced 1.32%, and PENN Entertainment, Inc. NASDAQ:PENN was up 1.11%.
| Listed gaming company | Friday | Week | One month | 2026 YTD | EV/EBITDA |
|---|---|---|---|---|---|
| DraftKings | up 4.55% | up 1.87% | up 9.91% | down 24.34% | 120.0x |
| Flutter Entertainment | up 3.05% | up 2.92% | up 1.52% | down 52.57% | 12.7x |
| MGM Resorts | up 1.32% | down 0.75% | down 4.33% | up 19.41% | 17.6x |
| PENN Entertainment | up 1.11% | down 0.98% | down 12.18% | up 25.64% | 14.1x |
The recovery has not offset the losses for the year. DraftKings is still down 24.3% in 2026 and lags 46.4% off its 52-week peak. Trading volume on Friday reached 8.5 million shares, roughly one-third under its 10-day average.
Despite several brokers lowering their price targets following second-quarter earnings, Wall Street remains optimistic about further gains. The forecast range for targets is between $27 and $38, with an average target of $32.50, which is roughly 24% higher than Friday’s closing price.
| Broker | Latest recommendation | Target | Implied move from $26.17 |
|---|---|---|---|
| Macquarie | Outperform | $38 | +45.2% |
| Barclays | Overweight | $34 | +29.9% |
| JPMorgan | Overweight | $33 | +26.1% |
| Guggenheim | Buy | $33 | +26.1% |
| Citigroup | Buy | $32 | +22.3% |
| Benchmark | Buy | $30 | +14.6% |
| Deutsche Bank | Hold | $28 | +7.0% |
| Bernstein | Outperform | $27 | +3.2% |
Risks: Promotional offers may boost sign-ups but not necessarily drive lasting revenue. Sports results are unpredictable. Investment in prediction markets could lengthen the timeline to recoup costs, and regulatory requirements along with state gaming taxes may push up customer-acquisition expenses.
U.S. markets remain shut over the weekend. The promotion period ends on Sunday night. In the coming week, investors will be monitoring if DraftKings maintains Friday’s upward momentum and if offers tied to fall sports increase in generosity. The date for the next earnings report has not been announced yet.
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