In the first quarter of 2024, US leading sports betting operator DraftKings reported a massive revenue increase of 53%, reaching $1.17 billion, up $405 million from the previous year’s $770 million. The growth was largely fueled by factors such as improved customer engagement and the strategic expansion of its sportsbook offerings into new markets.
Jason Robins, CEO and Co-founder of DraftKings, commented, “DraftKings’ performance in the first quarter of 2024 was outstanding, reflecting healthy revenue growth and a scaled fixed cost structure that positions us to drive rapidly improving Adjusted EBITDA.” He highlighted the efficient launch of online sportsbooks in Vermont and North Carolina, which contributed to this success.
The company also saw an increase in Monthly Unique Payers, reaching 3.4 million, a 23% rise from the previous year. Additionally, the Average Revenue per Monthly Unique Payer climbed by 25% to $114.
With these strong first-quarter results, DraftKings upgraded its revenue forecast for 2024, now expecting to achieve between $4.8 and $5 billion—a jump from the previously projected $4.65 to $4.90 billion. The updated revenue guidance indicates an anticipated growth of 31% to 36% year over year. Adjusted EBITDA expectations were also revised upward from $410-$510 million to $460-$540 million.
Despite a 36.1% increase in revenue costs, totaling $710.1 million, the company managed to reduce sales and marketing expenses by 12.4%, down to $340.7 million. Expenditures on product and technology maintained a steady pace at $88.8 million, while general and administrative costs rose slightly by 8.6% to $174.3 million.
The first quarter concluded with a $138.8 million operating loss, marking a considerable improvement from the $389.8 million loss seen in the prior year. Pre-tax losses also saw a reduction, coming in at $143.2 million compared to the previous year’s $395.7 million.
DraftKings is now operational with mobile sports betting in 25 states and offers iGaming products in five. It also runs its sportsbook and iGaming platforms in Ontario, Canada, and is gearing up to launch in Puerto Rico. Following its acquisition of the lottery app Jackpocket in February, valued at $750 million, DraftKings anticipates an additional annual revenue of $340 million.
This April, Draftkings made headlines by hiring Lori Kalani as the company’s first Chief Responsible Gaming Officer.
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