Predictions Product Momentum Continues, With Ample Runway Still Ahead

Research evidence excerpt

Predictions Product Momentum Continues, With Ample Runway Still Ahead

June 9, 2026 | 11:40 ET~

DraftKings Interactive Entertainment & Media

Brian J. Pitz Analyst

brian.pitz@bmo.com (212) 671-8052

DKNG-NSDQ Rating Price: Jun-8 Target Total Rtn

Outperform $24.78 $50.00 102% David Lustberg VP Associate

David.lustberg@bmo.com (332) 274-9716

Charlotte O'Hanlon Associate

charlotte.ohanlon@bmo.com (347) 514-0382

VP AssociatePredictions Product Momentum Continues, With Stan Velikov, CFA

Ample Runway Still Ahead stan.velikov@bmo.com (415) 216-2047

Legal Entity: BMO Capital Markets Corp.

Bottom Line:

DKNG disclosed updates to May prediction market volumes, with annualized 60 2YR Price Volume Chart

consumer volume/annualized total volume increasing 24%/34% M/M to $1.3B/

$3.1B, respectively, indicating that DKNG continues to gain momentum with its

integrated prediction offering. We believe DKNG remains early in the adoption and 40 70

productization of its prediction offering, and see meaningful room for them to continue 30 6050

scaling their sports-related predictions business as product investments/marketing 20 3020

grow. Reiterate Outperform and Top Pick with $50 Target Price. 10 100

Dec Jun Dec Jun

LHS: Price ($) / RHS: Volume (mm) Source: FactSet

Key Points

DKNG Continues to Scale Its Predictions Product — The offering reached $1.3B/

$3.1B in annualized consumer volume/annualized total trading volume in May.

We highlight that this represents 23%/34% M/M growth, representing a deceleration

from the 38%/43% M/M growth achieved in April.

Ramp Suggests That DKNG Can Scale a Prediction Markets Offering — We are

encouraged by the meaningful M/M growth in DKNG's prediction market volume, which

we believe is still early in its ramp and product road map. However, we highlight that