DraftKings has lowered its annual revenue prediction, citing a $25 million cut from payouts following customer-friendly results in the National Football League (NFL).

In premarket trading, DraftKings shares plummeted almost 9% as the company's spending in the introduction of its products in Arizona and Wyoming expanded its third-quarter losses.

According to analysts, DraftKings and its competitors will spend substantially on marketing during the NFL season in order to lure new consumers in the numerous states where online sports betting is permitted.

Unfavorable results in a few NFL games in October, however, caused DraftKings to lower the top end of its fiscal 2021 estimate while raising the middle.

DraftKings makes bid to acquire UK rival gambling group Entain | Financial Times

DraftKings, based in Boston, expects revenue of $1.24 billion to $1.28 billion in fiscal 2021, up from a previous range of $1.21 billion to $1.29 billion. According to Refinitiv IBES, analysts predicted revenue of $1.29 billion on average.

It also predicted revenue in the range of $1.7 billion to $1.9 billion in 2022, which is broadly in line with market expectations.

Firms wanting to grow into the United Kingdom and double down in the United States, called https://reut.rs/3bIejo2 the "promised land for online gambling," have been busy making deals.

Last month, DraftKings pulled out of a $22 billion plan to buy gaming company Entain Plc, without explaining why the talks fell through.

In the third quarter ended Sept. 30, DraftKings' net loss attributable to common stockholders increased to $545 million, or $1.35 per share, up from $395.7 million, or $1.11 per share, a year earlier.

Revenue increased by 60% to $213 million, falling short of expectations of $236.6 million.