for early access to the latest igaming videos!
and get the latest igaming news first!
DraftKings has confirmed it is carrying out a company-wide restructuring that will lead to job cuts across the business.
The sports betting giants told SBC Americas that the reorganization is driven by a need to reduce general and administrative costs. A spokesperson explained, “DraftKings has decided to reorganize some teams to better align their people with the most important priorities and areas of investment for the company. Unfortunately, these changes will impact some roles across the organization.”
The company acknowledged the difficulty of the decision but stressed that the changes are aimed at strengthening its position for the future. “The company believes that while these decisions are difficult, they are necessary to best position them for future growth,” the statement continued.
DraftKings’ operating costs continue to rise
The restructuring at DraftKings comes as the company faces mounting expenses. Data from Citizens Capital Markets shows that general and administrative costs climbed 22% year-over-year, while spending on product and technology rose 26% in 2025. Much of that increase was tied to DraftKings’ move into prediction markets with the launch of its own platform.
Jordan Bender, Managing Director of Gaming Equity Research, projected that DraftKings could cut around 5% of its global workforce, which spans 13 countries.
Based on a median salary of $100,000, such a reduction would save about $30 million a year. The Boston-based company employed roughly 5,500 people in 2025, meaning more than 250 roles could be affected if those estimates prove accurate.
This would mark the company’s second round of layoffs in three years. In 2023, DraftKings eliminated 140 positions, about 3.5% of its staff, with most of those cuts outside North America in regions such as Europe and the Middle East.
DraftKings already projecting revenue growth for 2026
The announcement of job cuts comes less than two weeks after DraftKings reported strong earnings for the final quarter of 2025. The company posted $1.9 billion in revenue, a 43% increase compared to the same period a year earlier.
Adjusted EBITDA rose sharply to $343 million, up from $89.4 million in Q4 2024, while net income closed at $136.4 million, reversing a net loss of $134 million the year before.
Looking ahead, DraftKings expects its full-year revenue in 2026 to reach about $6.6 billion, compared to $6 billion in 2025. The company also projects adjusted EBITDA between $700 million and $900 million, building on the $620 million it achieved last year.
Bender suggested that these projections already factor in the cost savings tied to the restructuring. Despite the positive forecasts, DraftKings’ stock has fallen roughly 35% year-to-date, showing that investors are not fully convinced even as the company points to growth.
DraftKing Predictions projected to bring in $10 billion annually in the coming years
DraftKings is reshaping its business while putting major focus on prediction markets. In December, the company rolled out its standalone DraftKings Predictions app, following its purchase of Railbird, a derivatives exchange approved by the Commodity Futures Trading Commission.
CEO Jason Robins called the launch a turning point, saying, “Predictions is the most exciting new growth opportunity we have seen since PASPA struck down in 2018. Early signals are strong.”
Railbird is expected to serve as the main exchange supporting Predictions, with DraftKings already testing event contracts through CME Group.
The company has also expanded by signing a deal to add Crypto.com markets to its platform. Analysts cited by Robins believe the Predictions app could eventually generate up to $10 billion in annual gross revenue, making it one of DraftKings’ most ambitious growth drivers in the years ahead.
Source: SBC Americas
