DraftKings DKeX Self-Certifies Protected NBA Player Props Ahead of Season Opener

DraftKings (NASDAQ: DKNG) stock is down 23.5% over the past month, but several Wall Street analysts view the pull-back as an attractive entry point ahead of the company’s third-quarter earnings report Nov. 5.

In a report to clients, Jefferies analyst David Katz noted that DraftKings’ online sports betting (OSB) trends remain solid to start the 2026 NFL season. Katz cited low-teens year-over-year handle growth and state-level data showing DraftKings leading market rival FanDuel in gross gaming revenue (GGR) share, 31.8% to 31.5%. FanDuel is owned by Flutter Entertainment (NYSE: FLUT).

The analyst reiterated a “buy” rating on DraftKings stock with a $44 price target, representing a 123% upside from the Oct. 14 closing price.

iGaming Growth and Earnings Outlook

While improved wagering trends are evident, DraftKings’ third-quarter results and any forward-looking guidance offered up by the company could be tests of investors’ willingness to tolerate elevated promotional spending and prediction market investments.

Katz lowered his third-quarter revenue estimate for DraftKings to $1.37 billion from $1.39 billion, while widening his expected adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) loss to $67 million from $42 million. The revised figures reflect an additional $100 million allocated toward prediction market initiatives.

The report also highlighted moderating growth in iGaming. Although the segment continues to outpace sports wagering, its 16.4% year-over-year expansion in the second quarter marked the slowest quarterly increase for the U.S. market on record.

“If realized, 2Q and 3Q would represent the two slowest iGaming growth quarters in the company’s history,” adds the analyst. “Management has highlighted increased focus on the segment, citing encouraging trends from new content and slot-focused promotions. Additional iGaming legalization would be a positive catalyst for shares. DKNG is well positioned as a market leader in any newly regulated U.S. jurisdiction.”

DKeX Self-Certifies NBA Injury Protections

In addition to core sportsbook and casino operations, DraftKings’ proprietary DKeX exchange self-certified event contracts featuring injury protections for NBA player props. The move follows similar product rollouts across the prediction market sector ahead of the NBA regular-season opener on Tuesday, Oct. 20.

Under Commodity Futures Trading Commission (CFTC) regulations, self-certification permits exchanges to launch new derivatives unless the regulatory body requests additional review or issues a stay.

The DKeX contracts provide settlement protections if an athlete sustains a first-half injury and does not return to play.

“This Contract additionally includes a Covered Settlement provision: where [entity] plays in the first half of [event] but not in the second half, and the Payout Criterion is not satisfied, the Contract resolves to the last fair market price prior to the scheduled tipoff of [event], as set forth in Section 2.2, subject to the terms of the contract and market specifications and Chapter 13 of the DKeX Rulebook,” the filing states.