DraftKings Prediction Market Volume Could Reach $15 Billion in 2027

In a new report to clients, Macquarie analyst Chad Beynon said DraftKings Predictions could see significant volume growth in 2027. The platform, which is not yet a year old, joined the sector-wide volume increase last month.

In October, DraftKings Predictions generated approximately $842 million in consumer volume. Beynon believes this figure paves the way for $15 billion in consumer volume in 2027. Consumer or buyer volume refers to the trading activity of small retail investors who take the liquidity offered by market makers and large investors. Last month, Beynon estimated that 2026 buyer volume could reach $187 billion.

Mobile app download data shows that retail investors still show strong interest in the largest prediction market operator. However, DraftKings Predictions captured 12% of prediction market app downloads over the past seven days, up from 11% a week earlier. While the increase is small, the company's in-house exchange, DKeX, is growing rapidly, and its net revenue margins are approaching those of DraftKings Sportsbook.

Beynon believes sports betting companies have not earned enough from the event contract category. He says these companies could gain share as their geographic reach expands, product awareness grows, and prediction market offerings become more integrated. DraftKings projected adjusted EBITDA investment of between $650 million and $700 million for DraftKings Predictions. This plan raised concern among investors that the company is overspending on event contracts. Still, the rise in net revenue margin and Macquarie's 2027 buyer volume estimate suggest these expenditures may be justified. The company, meanwhile, said it sees opportunity in non-sports event contract segments, and management pointed to high participation from prediction market traders and attractive payback periods.