DraftKings targets $5 bn in revenue as sports betting booms

DraftKings, a digital sports entertainment and gaming company, said its revenue rose 53 percent to $1,175 million in Q1 2024 from $770 million during the same period in 2023.
DraftKings sports bettingThe Boston-based sports betting company said the growth in first-quarter revenue was driven primarily by customer engagement, acquisition of new customers, the expansion of the Sportsbook product offering into new areas, higher structural sportsbook hold percentage, and promotional reinvestment for Sportsbook and iGaming.

“We launched our online sportsbook in Vermont and North Carolina with highly efficient customer acquisition,” said Jason Robins, DraftKings’ Chief Executive Officer and Co-founder, announcing its financial result.

DraftKings said monthly unique payers (MUPs) increased to 3.4 million (up 23 percent) monthly paying customers reflecting strong player acquisition and retention across DraftKings’ Sportsbook and iGaming products as well as the expansion of its Sportsbook product into new areas.

Average Revenue per MUP (ARPMUP) was $114 (up 25 percent) in the first quarter of 2024, due to an increase in the structural sportsbook hold percentage and improved promotional reinvestment for Sportsbook and iGaming.

DraftKings is raising its fiscal year 2024 revenue guidance to a range of $4.8 billion to $5.0 billion from the range of $4.65 billion to $4.90 billion announced on February 15, 2024. The company’s updated 2024 revenue guidance range equates to year-over-year growth of 31 percent to 36 percent.

DraftKings is increasing its fiscal year 2024 Adjusted EBITDA guidance to between $460 million and $540 million compared to its prior guidance of between $410 million and $510 million.

Following the launch of its Sportsbook product in North Carolina on March 11, 2024, DraftKings is live with mobile sports betting in 25 states that collectively represent approximately 49 percent of the U.S. population.

DraftKings is live with iGaming in 5 states, representing approximately 11 percent of the U.S. population.

DraftKings is live with its Sportsbook and iGaming products in Ontario, Canada, which represents approximately 40 percent of Canada’s population.

DraftKings expects to launch its Sportsbook product in Puerto Rico pending market access, licensure, regulatory approvals, and contractual approvals where applicable.

To date in 2024, 9 jurisdictions that collectively represent approximately 11 percent of the U.S. population have either introduced legislation to legalize mobile sports betting or introduced a bill that may result in a mobile sports betting referendum during an upcoming election.

In addition, 5 jurisdictions that collectively represent approximately 12 percent of the U.S. population have either introduced legislation to legalize iGaming or introduced a bill that may result in an iGaming referendum during an upcoming election.

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