General
August 7, 2021
5 minutes read

Earnings: DraftKings Triples Revenue, User Base

Sports betting company DraftKings has reported its latest quarterly earnings results, showing very good growth as the legal sports betting…

Sports betting company DraftKings has reported its latest quarterly earnings results, showing very good growth as the legal sports betting market takes shape and grows in the US. It’s such that the company tripled its revenue over the past year and nearly tripled its user base in the same period.

DraftKings’ latest earnings show $298mn in revenue for the three months ended June 30, 2021. This was up 320% year-over-year. In the same period, the company’s average monthly unique player count grew to 1.1 million, up 281% year-over-year.

The average revenue per “monthly unique player” for DraftKings was $80, up 26% year-over-year.

Showing such growth isn’t unexpected for DraftKings, as it’s the forerunner in the legal online sports betting market in the US. The company is riding the waves of more regions in America opening up toward legal sports betting, especially on mobile where users are easily accessible.

Currently, DraftKings offers online sports betting in 12 states that collectively account for 25% of the US population. Much more could be coming as 25 other state legislatures have introduced bills to legalize sports betting, though there’s no guarantee all such bills will be passed after a vote.

The average revenue per “monthly unique player” for DraftKings was $80, up 26% year-over-year.

Now, DraftKings is raising its revenue forecast for this year from $1.05bn-$1.15bn to $1.2bn-$1.3bn. It speaks of the company having a very solid business with strong growth prospects. But, the company is not profitable, with a net loss of $306mn in the quarter.

In this quarter, DraftKings was notably accused by a short-seller of misconduct in its business, particularly its SBTech division allegedly enabling money laundering and illegal gambling activities. It was from a prominent short-seller named Hindenburg Research, the same firm that kickstarted the downfall of EV startup Nikola Motors.