Hard-charging sports betting DraftKings has posted a spectacular Q3 with a near-40 percent increase of revenue, year-on-year, to US$1.095 billion (£848.45m).
The Massachusetts-founded fantasy sports market leaders also released its fiscal guidance for next year, projecting revenue of up to US$6.3 billion (£4.85bn) with Adjusted EBITDA of between US$900 million (£694.21m) to US$1 billion (£771.35m).
“With the return of NFL and college football, [we] delivered strong results in Q3,” affirmed DraftKings CEO and Co-founder Jason Robins.
Momentum
“We are well-positioned to build on this momentum as we further enhance our top-ranked sportsbook app with additional live betting features and exciting new NBA markets.
In the third quarter, ending September 30, DraftKings saw revenue growth driven by effective customer engagement strategies, expansion of its sportsbook into new jurisdictions, and an enhanced sportsbook “hold” percentage.
Growth
This growth was further supported by the acquisition of Jackpocket Inc. in May for US$750 million (£578.43m), which boosted capabilities and the customer base.
DraftKings also reported an increase in Monthly Unique Payers (MUP) to 3.6 million, an impressive 55 percent rise, y-o-y; although Average Revenue per MUP dropped by some 10 percent.
The fierce competitor of Flutter’s FanDuel, currently the two most dominant sports books in America, has now revised its full-year 2024 guidance: forecasting revenue of up to US$4.95 billion (£3.81bn). Adjusted EBITDA guidance has also been updated to a range of between US$240 million to US$280 million (£185.14m-£216m).
DraftKings remains live with mobile sports betting in 25 U.S. states and Washington, D.C., covering half of the nation’s population. It also operates wider iGaming in five states and sports and iGaming services in Ontario, Canada.
Pending approvals, the company is poised to launch its online sportsbook in Missouri and the U.S. territory of Puerto Rico.
