DraftKings is reportedly undergoing a company-wide restructuring that will lead to job cuts as the operator looks to streamline costs, refocus investment priorities, and expand prediction market offerings. The Boston-based online gaming and betting group confirmed the move to SBC Americas, saying the reorganisation is designed to reduce general and administrative (G&A) expenses while positioning the business for long-term growth.
A company spokesperson said the changes are intended to better align resources with strategic priorities, but acknowledged that some roles will be affected. “DraftKings has decided to reorganise some teams to better align their people with the most important priorities and areas of investment for the company,” the spokesperson said.
“Unfortunately, these changes will impact some roles across the organisation. The company believes that while these decisions are difficult, they are necessary to best position them for future growth.”
The restructuring follows analysis from Citizens Capital Markets and Advisory Managing Director of Gaming Equity Research Jordan Bender, which highlighted a sharp increase in operating costs.
According to the firm’s data, as reported by SBC Americas, General and Administrative (G&A) costs rose 22 percent year over year, while Product and technology expenses increased 26 percent year over year in 2025.
The report attributed part of the technology spending increase to DraftKings’ expansion into prediction markets through its new platform initiatives.
This would mark the second round of layoffs in three years. In 2023, the company cut 140 positions, about 3.5 percent of staff at the time. This restructuring aimed to improve operational efficiency, with cuts impacting departments like engineering and talent acquisition, primarily in the Europe, Middle East, and Africa (EMEA) division.
The restructuring comes less than two weeks after DraftKings reported strong quarterly earnings. For the fourth quarter of 2025, the company reported revenue of $1,989 million, up 43 percent year-on-year. Adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the quarter stood at $343.2 million, up from $89.5 million registered in the prior year. For fiscal year 2026, DraftKings forecasts revenue between $6.5 billion and $6.9 billion, compared with $6 billion in 2025, and expects adjusted EBITDA of $700 million to $900 million.
The move also comes shortly after the men’s gold medal game at the 2026 Winter Olympics became one of the biggest hockey betting events ever at DraftKings Sportsbook. Team USA’s 2–1 OT win over Canada ranks as the third highest-handled hockey game in company history and the top Olympic matchup ever on the platform. Jack Hughes ended the 46-year drought at 18:19 of overtime, and bettors treated it like a Game 7.
The restructuring coincides with DraftKings’ aggressive push into prediction markets via its standalone DraftKings Predictions app, launched in December following its acquisition of derivatives exchange Railbird. The exchange is approved by the Commodity Futures Trading Commission and is expected to serve as the backbone of the new offering.
During the company’s Q4 earnings call, CEO Jason Robins described the opportunity as transformational. “Predictions is the most exciting new growth opportunity we have seen since PASPA struck down in 2018,” Robins said. “Early signals are strong.”
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