Matt Bastock

DraftKings has reported $4.77 billion in revenue for Fiscal Year 2024, up from $3.67 billion in 2023. Revenue for the fourth quarter of 2024 was up 13 percent on the same period the year prior, reaching $1.39 billion.

Notably, the sports betting giant posted its first positive Adjusted EBITDA, $181.3 million, compared to a negative $151.0 million in 2023. 

Updating investors, DraftKings attributed revenue growth and the positive financial outlook to efficient customer acquisition, the expansion of sportsbook products into new jurisdictions, a higher structural hold percentage, and a successful acquisition of Jackpocket Inc. This was despite a season dominated by unfavorable NFL results for the sportsbook. 

DraftKings’ Player Growth and Changing Revenue Trends

Highlighting specific user acquisition metrics, DraftKings reported a 36 percent increase in monthly unique players in Q4 2024, up to 4.8 million. Despite the rise in unique players, the average revenue per player decreased 16 percent to $97 in the period. The company attributes the lower average to Jackpocket customers, who tend to have lower average revenue and the aforementioned NFL results. 

Jason Robins, Chief Executive Officer and Co-Founder of DraftKings commented: “We continued to efficiently acquire and engage customers, expand structural sportsbook hold percentage and optimize promotional reinvestment in fiscal year 2024, while we simultaneously experienced customer-friendly sport outcomes.”

He continued: “Looking ahead to 2025 and beyond, I am excited to further enhance our customer economics through new initiatives such as extending our lead in live betting and advancing cross-sell efforts to and from new verticals. Our focus remains on driving sustainable growth in revenue and profitability.”

DraftKings is now live with mobile sports betting in 25 states and Washington D.C., thus having access to 49 percent of the total U.S. population. It also runs online casino operations in five states, representing 11 percent of the country’s citizens. 

During the year, DraftKings expanded to Ontario, Canada, bolstering its significant North American footprint. DraftKings’ sportsbook products are planned for the 2025 financial year in Missouri and Puerto Rico., pending regulatory approvals.

The company is forecasting strong growth for 2025. In a release, Alan Ellingson, Chief Financial Officer of DraftKings, said, “2024 was a milestone year for DraftKings as we achieved our first year of positive Adjusted EBITDA. Additionally, we began executing on our inaugural share repurchase authorization. With strong underlying health across our core value drivers, we are raising the midpoint of our fiscal year 2025 revenue guidance to $6.45 billion from $6.4 billion and reaffirming our fiscal year 2025 Adjusted EBITDA guidance range of $900 million to $1.0 billion.” 

DraftKings Weighs Future in Event Contracts and Crypto Betting

Answering a plethora of questions at the end of the earnings call, Robins remained non-committal on issues such as event contracts and accepting crypto payments. “It’s certainly something we’re looking at. It’s also getting regulators comfortable with it. They’re usually cautious around crypto,” he said. 

He emphasized that the company is simply ‘keeping an eye’ on developments surrounding the Commodity Futures Trading Commission and event contracts. 

Kalshi, in particular, has been particularly aggressive in pursuing prop-style event contracts and plans to offer contracts for single-match outcomes. It has also pursued several marketing campaigns effectively claiming to be ‘legal sports betting’ in 50 states. The prediction market company’s board member, Brian Quintenz, was recently nominated by President Trump as the new Chair of the CFTC, giving a significant boost to those hoping for an expansion of sports event contracts.

Written By

Matt Bastock

Matt is a casino and sports betting expert with over two decades’ writing and editing experience. He loves getting into the nitty gritty of how casinos and sportsbooks really operate in order to make solid recommendations based on real experiences. His favourite games are blackjack and poker, and he loves watching NFL and soccer in his spare time.

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With the group preparing for online sports betting debuts across Maryland, Ohio, Kansas, and Puerto Rico, which would make the group’s app available to 44 per cent of the population, Massachusetts and California also fall firmly on the radar.

Legislature in the east coast state has passed a bill to legalise retail and online wagering to a further two per cent of the populace, while the Golden State could provide a “huge opportunity” and a further 12 per cent.

“And on November 8, Californians will vote on whether they want regulated online sports betting, while simultaneously helping solve issues such as homelessness, mental health and addiction, while providing funding and economic opportunity for all of the state’s tribe,” commented Jason Robins, Co-Founder, CEO and Chair of DraftKings.

“Even assuming all of these states, including California, launched in late 2022 or in 2023, we have more conviction than ever in our ability to reach positive free cash flow with our current capital reserves.

“Despite that conviction, we are still making a concerted effort this year to drive efficiency opportunities and early GNOG synergies and have already identified approximately $100m of cost reductions for this year. 

“As I mentioned earlier, I am very proud of the team for striking a great balance through the first half of the year by driving strong revenue growth while also making improvements to our long-term cost structure. We look forward to continuing to balance these dual objectives. In addition, we are finalising our plans for 2023.”

“…the last few weeks of September are heavy in terms of promotional activity”

Regarding Golden Nugget Online Gaming, the $1.56bn purchase of which was finalised in May, DraftKings has stressed that it is “focused on capturing the marketing, gross margin and G&A synergies”. Migration of GNOG to the DraftKings platform is expected to be finalised during H2 2023.

In addition to stressing excitement in Web3 technology and DraftKings marketplace, with blockchain and NFT tech hailed as “endemic to our core business,” Robins also touched upon the group’s immediate outlook.

With full-year revenue and adjusted EBITDA projections being improved, the company’s online gaming business is said to be “very healthy” as DraftKings aims to continue executing on operating efficiencies.

Moving on to sports betting, Robins pinpointed the fast approaching NFL season as key, with a “significant amount” of Q3 revenue expected to come during the final three weeks of September.

“Hold rate tends to normalise over the course of a full NFL season, but it can vary significantly over the course of a few weeks,” it is added.

“This can have a pronounced impact on Q3 considering July and August are among the lightest months of the year from a sports calendar perspective. 

“Second, the last few weeks of September are heavy in terms of promotional activity, which is driven by customer acquisition and reactivation. 

“While some of the promotions we run have predictable numbers behind them, there are others that depend on game outcomes, which amplifies potential volatility in Q3.”

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The agreement will see the Division, in coordination with the DraftKings responsible gaming team, create a systems-based safer play approach to training the business’ employees in responsible gaming. This will include a logic model, conceptual map, needs assessment schedule and an evaluation plan. 

Jason Robins, co-founder, CEO and chairman of DraftKings, said: “We look forward to continuing our relationship with the Division on Addiction at Cambridge Health Alliance to expand our research-driven approach to responsible gaming. 

“Evidence-based and data driven strategies, created in coordination with CHA’s premier researchers, will enhance our player safety policies, product tools and employee training.”

DraftKings’ responsible gaming mission is to mitigate harm and protect vulnerable populations using technology, providing training and resources for employees and consumers, and by supporting evidence-based research. 

Furthermore, the company provides responsible gaming tools for customers including: limit setting, cooling-off periods, and self-exclusion. In addition, it is a contributor to the International Center for Responsible Gaming’s Fund to support research on sports wagering and is also a member of the American Gaming Association.

In 2016, the division sought out research on daily fantasy sports play where they enjoyed exclusive access to anonymised DraftKings customer data in order to better understand responsible play. 

The research collaboration saw presentations at international conferences and published peer-viewed articles, offering seminal observations of daily fantasy sports play. In addition, DraftKings received feedback opportunities to aid the company’s commitment to providing a safe environment for its players.

Debi LaPlante, PhD, principal investigator, director of the division and assistant professor of psychiatry at Harvard Medical School, commented: “We look forward to continuing our engagement with DraftKings on these strategic consulting, training, and dissemination activities and believe that this work will break new ground in responsible gaming.

“Sharing scientific knowledge with DraftKings to advance new responsible business processes will help players at risk of gaming-related problems. With the rapid expansion of sports betting across the United States, this is the perfect time to build actionable and evidence-based strategies for DraftKings.” 

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The move comes fresh off the back of the latter striving to accelerate growth to become the ultimate sports entertainment option for fans via a new Boston base of operations.

The terms of the new deal secure Kambi’s current revenues in New Jersey, while also providing the opportunity to generate incremental revenues as and when the partnership enters the additional jurisdictions. 

Jason Robins, DraftKings’ chief executive officer, added: “Kambi has been a key partner for DraftKings, providing us with back-end sportsbook technology that has enabled to us to offer our customers an engaging product in a highly competitive market.”

The extended agreement includes terms to be extended into the states of Colorado, Indiana, Iowa, Maine, Pennsylvania, Tennessee, West Virginia and New York, which is to be the site of the first activation of the enhanced link-up.

This is to come at the Waterloo-based Del Lago Resort and Casino in upstate New York, with the property’s DraftKings sportsbook set to open tomorrow (Friday 23 August).

As part of the new sportsbook Del Lago promises more than 6,000 square feet of action, 23 betting kiosks, four betting windows and 1,000 square feet of LED video screens.

Replacing the properties Vine Restaurant and Bar, former Syracuse University star and NFL quarterback Donovan McNabb will be on hand to help open the new entity.

Kristian Nylén, Kambi chief executive officer, added: “Over the course of the past 12 months, Kambi and DraftKings have developed a symbiotic relationship, working closely together to deliver a high-quality sportsbook, which has only improved over time.

“I’m delighted the extension of our relationship through this new agreement will enable players in other states to enjoy the same exciting sports betting experiences that have helped DraftKings become a market leader in New Jersey.”

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Becoming the largest single-floor plan in Boston, and more than double the size of the company’s previous office in the city, the state-of-the-art Back Bay neighbourhood was the location for a ceremony opening the 105,000-square foot space this week.

In attendance at the debut, and official ribbon-cutting ceremony, was Massachusetts Governor Charlie Baker and Lieutenant Governor Karyn Polito alongside DraftKings co-founders Jason Robins, Paul Liberman and Matt Kalish.

Robins, DraftKings CEO and co-founder, commented: “Massachusetts has been home to DraftKings since our inception, and we take immense pride in being part of the vibrant technology community here.

“Our new headquarters will foster innovation, while providing a true home field advantage as we work toward our goal of being the ultimate sports entertainment destination for fans.”

Via opening the new space the company is to accelerate its current growth projections, which has seen a 65-percent increase year-over-year for employee headcount,  

Furthermore, it also comes complete with professional production and podcast studios, along with green rooms, to bolster DraftKings’ focus on in-house content creation, in addition to custom made work areas designed to spark innovation and the development of new products.

Since being founded in 2012, DraftKings has established office locations across the United States, more specifically in California, Florida, Nevada, New Jersey and New York.

“Massachusetts is home to a thriving innovation economy, and we are pleased that DraftKings is a part of that economy,” added Governor Baker. “We are glad to support an environment that encourages the expansion of Massachusetts-based tech companies like this one.”

Last month the company aligned with Caesars Entertainment in a multi-state agreement, providing market access across a number of US jurisdictions.

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The new agreement will see Caesars offer DraftKings market access for its online gaming products, subject to passage of applicable laws and the parties securing all necessary gaming licenses.

Mark Frissora, president and CEO of Caesars Entertainment, said of the partnership: “Caesars’ agreement with DraftKings, their first multi-state partnership, brings together the established leaders in gaming, daily fantasy sports and sports betting to provide customers more options.

“This alliance is the latest initiative by Caesars to capitalise on our database, generate a new revenue stream in a growth market and raise our profile in sports, in part by creating new sports-themed guest experiences at our resorts across the country.”

DraftKings is to promote Caesars as its official casino resort partner in the states where collaboration ensures, with the casino entertainment firm also receiving DraftKings equity.

Caesars can also continue to offer their own branded sports betting and online casino apps in each region, and will maintain their own primary access in all states according to regulation under the agreement.

Jason Robins, CEO and co-founder of DraftKings, added: “Partnering with such a world class gaming organisation will expedite our national roll-out process, and give us the opportunity to work alongside one the largest and most established industry leaders in the world.

“We look forward to collaborating with Caesars Entertainment on creating the most innovative and engaging sports and entertainment products and events for our customers.”

This agreement follows reports of a potential sale of Caesars, with US businessman Carl Icahn said to be continuing to push for a sale of the company.

In a securities filing by High River Limited Partnership and other entities affiliated with Icahn, it was revealed that he owns approximately 9.78 per cent of the organisation, whilst he also stressed a belief that Caesars stock is undervalued, is seeking board representation and urges that a new CEO not be appointed immediately.

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Officially opening on Friday November 16, the D’Iberville based property marked DraftKings debut entry into the retail space, a move which is to be quickly followed up with its launch at Atlantic City’s Resorts Casino Hotel.

By utilising IGT’s PlayShot technology, visitors to the Scarlet Pearl are able to place a variety of pre-match and in-play sports wagers, over the counter.

Furthermore, pending the necessary regulatory approval, the casino is also set to see the deployment of a series of IGT sports betting peripherals, such as kiosks and mobile technology, “as the regional sports betting market evolves”.      

Enrico Drago, IGT senior vice president of PlayDigital, commented: “We wish to congratulate Scarlet Pearl Casino for opening an exceptional sports betting venue, featuring IGT PlayShot sports betting technology.

“The IGT platform, and the expertise and appeal of the DraftKings brand, combine to deliver a truly world-class sports betting solution, that elevates the entertainment experience for sports fans in Mississippi.”

Transforming the property’s existing PRL Bar into a “multi-screen betting and social destination for sports lovers,” patrons are promised a space that will “offer fans the opportunity to engage with an immersive and entertaining gaming experience”.

The ribbon cutting ceremony, officially opening the DraftKings at Scarlet Pearl Sportsbook, as attended by Jason Robins, DraftKings co-founder, and Mississippi sports legend Wesley Walls.

“Scarlet Pearl Casino prioritises offering our guests ‘A New Way’ to enjoy gaming entertainment,” added LuAnn Pappas, Scarlet Pearl Casino General Manager and CEO. “By leveraging IGT’s PlayShot sports betting technology, and the expertise of the DraftKings team, we were able to quickly make our vision for a state-of-the-art sportsbook for the Mississippi Gulf Coast a reality, and to offer our guests a reliable betting experience with a familiar brand.”

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