DraftKings CEO predicts new changes for iGaming in 2025
The CEO of the American gambling company, DraftKings, which offers sportsbooks and daily fantasy sports services, shared his predictions for 2025 during the Craig-Hallum...
DraftKings reports major Q3 revenue declines
An American gambling company, DraftKings, offering sportsbooks and daily fantasy sports services, shared its Q3 results, reporting a loss of 50%.
Being one of the industry leaders, DraftKings is constantly falling into the industry’s attention with its high numbers. However, for Q3 2024, DraftKings reported major losses. The company had expected to generate revenues of $1.11 billion. Meanwhile, the results show revenues of $1.095 billion, which is still an increase of 39%.
DraftKings commented on the losses:
“The decrease was primarily due to lower ARPMUP for Jackpocket customers when compared to customers of DraftKings’ existing product offerings prior to the acquisition, partially offset by improvement in the company’s structural Sportsbook hold percentage and improved promotional reinvestment for Sportsbook and iGaming. Excluding the impact of the acquisition of Jackpocket, ARPMUP increased approximately 8% compared to the third quarter of 2023.”
Monthly unique players (MUPs) reached 3.6 million, up from 2.29 million in the previous year, exceeding forecasts of 3.51 million. However, the average revenue per MUP was $103, lower than last year’s $114 and below the expected $105.66.
DraftKings adjusted its 2024 revenue guidance down to a range of $4.85 billion to $4.95 billion, citing lower-than-expected customer spending due to favorable sports outcomes in early Q4.
DraftKings expectations for 2025
DraftKings initial 2025 revenue forecast falls between $6.2 billion and $6.6 billion, indicating 31% growth at the midpoint.
DraftKings stated:
“DraftKings is introducing a fiscal year 2025 revenue guidance range of $6.2 billion to $6.6 billion, which equates to approximately 31% year-over-year growth based on the midpoints of the company’s updated fiscal year 2024 revenue guidance range and the company’s fiscal year 2025 revenue guidance range. DraftKings expects to launch its Sportsbook product in Missouri pending market access, licensure, regulatory approvals, and contractual approvals where applicable.”
Looking ahead, DraftKings maintains a positive outlook, forecasting strong revenue growth in 2025 as it expands to new markets and adjusts its offerings.
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