DraftKings Uses Prediction Markets to Lower Acquisition Costs

DraftKings says its growing push into prediction markets is already helping reduce one of the biggest costs in online gaming, customer acquisition.

The company recently revealed that integrating DraftKings Predictions into its main sportsbook app led to a major drop in acquisition expenses, showing how prediction markets are becoming more important to the company’s long term strategy.

Bringing Prediction Markets Into the Main App

According to DraftKings CEO Jason Robins, customer acquisition costs tied to DraftKings Predictions fell by more than 80% in April after the feature was integrated into the company’s primary platform. That change matters because acquiring new users has historically been one of the most expensive parts of operating a sportsbook in the U.S.

Instead of building a separate audience from scratch, DraftKings is now using its existing sportsbook ecosystem to introduce users directly to prediction market products.

A More Efficient Growth Strategy

The integration shows a strategic shift in how operators are approaching expansion. Rather than relying entirely on expensive marketing campaigns and promotions, companies are increasingly trying to grow by deepening engagement within platforms they already control.

For DraftKings, prediction markets appear to offer another way to keep users active inside the bigger ecosystem while reducing the cost of bringing them in. That efficiency could become increasingly valuable as competition across sports betting and prediction markets continues intensifying.

Prediction Markets Become a Defensive Play

DraftKings has openly acknowledged that prediction markets are no longer a side conversation for sportsbook operators. Platforms like Kalshi and Polymarket have grown quickly over the past year, particularly in states where traditional sports betting remains unavailable.

That growth has created pressure on established sportsbook companies to respond. DraftKings’ move into event contracts through DraftKings Predictions is not just about finding new revenue opportunities. It is also about protecting market share as the lines between sportsbooks and prediction markets continue narrowing.

More Features Are Already Coming

The company is not stopping with basic event contracts. Robins recently confirmed that DraftKings is exploring additional features tied to prediction markets, including parlays and market making functionality.

Those additions would move the platform even closer to the structure and experience traditionally associated with sportsbooks. At the same time, they are likely to increase regulatory attention as prediction markets continue facing scrutiny around classification and oversight.

A Market Moving Quickly

Prediction markets have expanded rapidly over the last year, getting attention from operators, investors, regulators, and media companies alike. DraftKings first entered the sector through its acquisition of Railbird Technologies in 2025, which laid the foundation for DraftKings Predictions.

Since then, the company has continued positioning prediction markets as an important part of its future growth strategy.

The Focus on Efficiency

What stands out most is how DraftKings is framing the opportunity. The company is not just talking about prediction markets as a new category. It is presenting them as a more efficient way to grow and retain users inside an already competitive market.

For operators facing rising acquisition costs and tighter competition, that could become one of the biggest reasons prediction markets continue gaining momentum.

The Direction From Here

DraftKings appears committed to expanding prediction markets further inside its ecosystem, with additional features and deeper integration likely still ahead. At the same time, regulatory questions around event contracts, sports related markets, and federal oversight continue building across the U.S.

For now, though, DraftKings’ latest comments show that prediction markets are already changing how major operators think about growth, retention, and long term strategy.

Stay tuned to UMG Gaming for more updates on prediction markets, regulation, and the evolving U.S. gaming landscape.