Press Releases
DraftKings Reports Second Quarter Revenue of $466 million; Second Quarter B2C Revenue Increases 68% YOY; Revenue Exceeds Midpoint of Guidance by More Than $30 million and Adjusted EBITDA Outperforms Midpoint of Guidance by Almost 40%
DraftKings Inc. reported its second quarter 2022 financial results.
Second Quarter 2022 Highlights
For the three months ended June 30, 2022, DraftKings reported revenue of $466 million, an increase of 57% compared to $298 million during the same period in 2021. Revenue for the Company’s B2C segment grew to $455 million, an increase of 68% compared to the three months ended June 30, 2021, notwithstanding a less favorable sports calendar in the second quarter of 2022 compared to the second quarter of 2021. Revenue and Adjusted EBITDA outperformed the midpoints of their respective guidance ranges for the second quarter of 2022, which were previously provided by DraftKings during its first quarter earnings call on May 6, 2022 and included contributions from the Company’s acquisition of Golden Nugget Online Gaming, Inc. (“GNOG”) and the Company’s expected launch in Ontario (the “Q2 Guidance”), by more than $30 million and by almost 40%, respectively. Results for the three months ended June 30, 2022 include the operations of GNOG on and after May 5, 2022, which is the date on which the GNOG acquisition was consummated.
“DraftKings had an excellent second quarter, exceeding expectations for revenue and Adjusted EBITDA,” said Jason Robins, DraftKings’ co-founder, Chief Executive Officer and Chairman of the Board. “Customer engagement remains strong, and we continue to see no perceivable impact from broader macroeconomic pressures. Due to our ongoing investments in core online gaming technologies, we are in a strong position from a competitive perspective as we approach the beginning of the NFL season. We remain well capitalized, ready to enter new markets as they become live, and confident in our ability to compete and win with customers.”
“We executed very well in the second quarter and outperformed the midpoints of the Q2 guidance ranges for revenue and Adjusted EBITDA that we provided on our first quarter earnings call,” added Jason Park, DraftKings’ Chief Financial Officer. “Our B2C segment drove revenue growth due to stronger than anticipated customer activity, while we continued to make progress on identifying and capturing operating efficiencies. As a result, looking forward, we are increasing the midpoint of our fiscal year 2022 revenue guidance by $15 million and improving the midpoint of our fiscal year 2022 Adjusted EBITDA guidance by $60 million.”
Continued Healthy Growth in Player Retention, Acquisition and Engagement
- Monthly Unique Payers (“MUPs”) increased to 1.5 million average monthly unique paying B2C customers, representing an increase of 30% compared to the second quarter of 2021. This increase reflects strong unique payer retention and acquisition across DraftKings’ Sportsbook and iGaming products as well as the expansion of its Sportsbook and iGaming products into new jurisdictions, partially offset by a decline in Daily Fantasy Sports MUPs.
- Average Revenue per MUP (“ARPMUP”) was $103 in the second quarter of 2022, representing a 30% increase compared to the same period in 2021. This increase was primarily due to strong customer engagement, a continued mix shift into DraftKings’ Sportsbook and iGaming products and reduced promotional intensity compared to the same period in 2021.
Raising Midpoint of 2022 Revenue Guidance and Improving 2022 Adjusted EBITDA Guidance
- DraftKings is raising its fiscal year 2022 revenue guidance to a range of $2.08 billion to $2.18 billion from the range of $2.055 billion to $2.175 billion previously announced on the Company’s first quarter earnings call on May 6, 2022, which included contributions from the Company’s acquisition of GNOG and the Company’s expected launch in Ontario (the “Prior FY 2022 Guidance”). This updated 2022 revenue guidance range equates to year-over-year growth of 60% to 68%.
- DraftKings is also improving its fiscal year 2022 Adjusted EBITDA guidance to a loss of between $765 million and $835 million from its Prior FY 2022 Guidance of a loss of between $810 million and $910 million.
- DraftKings’ updated guidance for fiscal year 2022 revenue and Adjusted EBITDA includes all the states and jurisdictions in which it was live as of August 5, 2022.
- Detailed financial data and other information is available in DraftKings’ Quarterly Report on Form 10-Q, which will be filed today with the Securities and Exchange Commission (the “SEC”), as well as in a slide presentation that can be accessed through the “Investors” section of the Company’s website at investors.draftkings.com.
Expanded Mobile Sports Betting and iGaming Footprint
- DraftKings is live with mobile sports betting in 17 states that collectively represent approximately 36% of the U.S. population.
- DraftKings is also live with iGaming in 5 states, representing approximately 11% of the U.S. population.
- On May 18, 2022, DraftKings launched its Sportsbook and iGaming products in Ontario, Canada.
- Four of the U.S. jurisdictions where DraftKings has the potential opportunity to operate via a market access agreement or direct license – Maryland, Puerto Rico, Ohio, and Kansas – have authorized mobile sports betting. These four jurisdictions represent approximately 8% of the U.S. population and, pending licensure and regulatory approvals, would bring the percentage of the U.S. population where DraftKings expects to offer legalized mobile sports betting to approximately 44%.
- During the second quarter, the California Secretary of State confirmed that the online sports betting initiative that DraftKings supports took another step towards legalization by meeting the signature threshold to qualify for the ballot in November 2022. Tribes, leading homelessness and mental health advocates, and mayors of some of California’s largest cities are publicly supporting this initiative. DraftKings is cautiously optimistic about the ultimate outcome in November and the potential to generate hundreds of millions of dollars to address homelessness, mental health, and addiction in partnership with the state’s Tribes.
- In Massachusetts, the legislature passed a bill that, pending executive action, would legalize retail and online wagering on professional and collegiate sports. Massachusetts represents 2% of the U.S. population.
Product Functionality and Content
- In the second quarter, DraftKings continued to expand the functionality and content offering of its Sportsbook product, which the Company believes will help drive customer acquisition, engagement, and retention. These enhancements include new markets for Major League Baseball, such as wagers based on pitch speeds and pitch counts per plate appearance, and same game parlays for UFC® fights. In addition, the Company’s Sportsbook product has launched several features to strengthen its parlay offering – including parlay insurance, pre-packed same game parlays and the capability to void an individual leg of a same game parlay without voiding the entire parlay. DraftKings also plans to offer a feature that will allow users to combine multiple same game parlays.
- After a decade of innovation in Daily Fantasy Sports, DraftKings is bringing its digital gaming expertise and creativity to Web3 with the upcoming launch of a new game, Reignmakers Football. This next generation, NFT-powered fantasy football game is slated to debut on DraftKings Marketplace for kickoff of the 2022 football season in an effort to position the Company at the growing intersection of gaming and digital collectibles. Reignmakers Football combines fantasy sports with blockchain and techniques such as collecting and upgrading in a way designed to appeal to traditional and new collectors of NFTs, fantasy sports players, and fans of online and tabletop games. In collaboration with the National Football League Players Association, Reignmakers Football will feature tiered Player Card NFTs of real athletes whose on-field performances will score points within weekly lineups similar to Daily Fantasy Sports.
- In June 2022, the UFC® and DraftKings announced plans to launch a new iteration of DraftKings’ Reignmakers gamified digital collectibles franchise focused on UFC®. Reignmakers UFC® will allow fans to build NFT collections of their favorite UFC® fighters and utilize those NFTs in games to compete for prizes. Collectors may receive rewards both leading into and following the game rollout based on the utility of the NFT. Such rewards may include, among other things, entries into special Daily Fantasy Sports contests for cash and custom merchandise. Under DraftKings’ agreement with the UFC®, DraftKings Marketplace will have access to intellectual property from over 500 different athletes on the active UFC® roster from which to choose to create the Reignmakers UFC® collection.
- DraftKings continued to bolster its network of leading influencers and talent and expand its original programming – which is distributed on high reach platforms such as Apple Podcasts, iHeartRadio, Spotify, Twitch and YouTube – by announcing four new shows produced in coordination with Meadowlark Media. Joining the line-up are “Too Many Men” featuring hockey analysts Alison Lukan, Shayna Goldman and Sara Civian, “The Cooligans” with Alexis Guerreros and Christian Polanco, college football-focused “Shutdown Fullcast” hosted by Spencer Hall, Holly Anderson, Jason Kirk, and Ryan Nanni, and “DNF” (Did Not Finish), an F1 program with Jessica Smetana and Spencer Hall.
Environmental, Social and Governance Initiatives
- DraftKings reached its goal of funding the planting of 1 million trees by Earth Day 2022, in collaboration with the Arbor Day Foundation and Gisele Bündchen, the Company’s Special Advisor to the CEO and Board of Directors for ESG initiatives. This tree planting initiative has been a global effort, making an impact across 14 U.S. states and 8 countries, and has supported the health and wellness of the surrounding communities and populations.
- DraftKings continued its commitment to training veterans and military spouses in high tech skills as part of its Tech for Heroes initiative, with the Company planning to train an additional 200 veterans and spouses in 2022. In the second quarter, DraftKings also provided opportunities for its customers to support veterans-focused organizations and programs through charity-focused Daily Fantasy Sports contests and special Sportsbook and iGaming promotions.
- DraftKings and BetBlocker, a leading responsible gaming and safer play not-for-profit charity, announced a collaboration to advance awareness of and access to BetBlocker’s innovative responsible gaming software. BetBlocker will allow DraftKings customers to set restrictions on their gaming activities across all of their devices at no cost to the customers. Such restrictions will apply globally across thousands of gaming sites, whether regulated or not.
- In recognition of DraftKings’ outstanding commitment to social responsibility as it relates to responsible gaming and its promotion and institution of effective responsible gaming practices and culture, the Company’s Responsible Gaming team received three awards at this year’s National Council on Problem Gambling (“NCPG”) conference, including the NCPG Corporate Social Responsibility Program of the Year.
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Aposta Ganha launches Black Friday promotion with new ambassador Luva de Pedreiro
Aposta Ganha, the fastest growing Brazilian sports betting and casino site in Brazil, has launched its Black Friday promotion with its newest ambassador Luva de Pedreiro, AKA Bricklayer’s Glove.
With over 21 million followers on Instagram, the digital influencer and social media phenomenon will strengthen the brand’s presence in the market and shake up Black Friday with a campaign full of special offers for bettors.
Known for his catchphrase “Receeeeba!” and his irreverent personality, Luva de Pedreiro will be the main face of the campaign, creating a direct connection with the public, football fans and social media enthusiasts. The partnership aims to increase Aposta Ganha’s visibility in the market, attract new bettors and offer an even more dynamic experience.
Aposta Ganha is taking advantage of Black Friday to reinforce its commitment to ethical and transparent operations in the market. The platform complies with the new regulations of the Federal Government and invests in education and awareness initiatives, ensuring a safe experience for its users. Vitor Paulin, Chief Marketing and Growth Officer at Aposta Ganha, said: “Signing an ambassador like Luva de Pedreiro is a huge milestone for Aposta Ganha. His authenticity and connection with the public make him the ideal partner to boost our brand and make the betting experience even more exciting.”
Aposta Ganha’s Black Friday brings unmissable offers for all types of bettors. One highlight is that bettors will receive 10% cashback on the amount lost in the Aviatrix game and daily offers for sports betting. The promotions will be valid from November 21 to 30, with exclusive advantages in selected games each day.
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MAJOR LEAGUE BASEBALL SELECTS SPORTRADAR TO TRANSFORM PLAYER TALENT SCOUTING FOR ALL 30 CLUBS
Sportradar today announced a multiyear agreement with Major League Baseball (MLB) to offer unparalleled sports performance analysis of amateur baseball prospects, through its Synergy Coaching and Scouting solution, to the league and its 30 Clubs. This new partnership will revolutionize player talent scouting through Sportradar’s advanced, proprietary technology and highlights Sportradar’s commitment to delivering innovative and game-changing solutions to the league.
Under the agreement, MLB and its 30 Clubs will gain access to an unprecedented depth of player analysis and insights with event coverage expanding significantly, from 3,300 to more than 20,000 games – an over 600% increase. This includes college, international, professional partner leagues and leading amateur leagues, such as the MLB Draft League, the Appalachian League and MLB Develops events, and, for the first time, top high school events.
The Synergy Coaching and Scouting solution is uniquely positioned to address the player evaluation needs of MLB as it leverages Sportradar’s expertise ingesting and transforming millions of data points from video into detailed metrics, actionable insights and dynamic visualizations. This, combined with Sportradar’s AI-powered sports performance technology, enables Synergy to provide unparalleled, in-depth analysis of every player, play and game situation, and equips MLB and Club scouts with the information and insights they need to streamline the evaluation process, guide draft decisions and support the development of future MLB players.
“Sportradar’s cutting-edge technology, alongside our reputation as a trusted partner to leading US sports leagues, is driving the transformation of sports performance analysis,” said Eduard Blonk, Chief Commercial Officer, Sportradar. “Through Synergy we are pleased that we are expanding our relationship with MLB, equipping them with the deep data and insights they need to identify the next generation of players. We are eager to continue bringing innovative solutions to MLB.”
“We are excited to expand our relationship with Sportradar and ensure equal access to the Synergy video and data services for all 30 MLB Clubs. This platform has become a key resource for Clubs in the domestic and international scouting process and we look forward to continuing our work with Sportradar in the coming years,” said John D’Angelo, MLB’s Sr. Vice President of Amateur and Medical Operations.
Financial reports
Commercial Gaming Revenue Growth Continues in Q3 2024, Driving Industry’s 15th Consecutive Quarter of Growth
U.S. commercial gaming revenue reached $17.71 billion in Q3 2024, the industry’s highest-grossing Q3 on record, according to the American Gaming Association’s (AGA) Commercial Gaming Revenue Tracker. This makes Q3 2024 the industry’s 15th consecutive quarter of annual revenue growth, with September marking the 43rd straight month of rising year-over-year commercial gaming revenue.
Through the first nine months of the year, nationwide commercial gaming revenue stands at $53.24 billion, pacing 8.0 percent ahead of 2023 and putting the industry on track for a fourth straight record revenue year.
In Q3 2024, 29 of the 35 commercial gaming jurisdictions operational last year saw increased year-over-year revenue. This growth resulted in an 8.9 percent year-over-year increase in state and local taxes tied directly to gaming revenue, with commercial gaming operators contributing $3.79 billion in taxes across the quarter.
Quarterly revenue from land-based gaming – encompassing casino slots, table games and retail sports betting – totaled $12.56 billion, 0.62 percent lower than Q3 2023. Meanwhile, combined revenue from online sports betting and iGaming totaled $5.14 billion in Q3 2024 as online gaming made up 29.0 percent of commercial gaming revenue, a significantly higher share than in Q3 2023.
Looking at each sector in Q3 2024:
- Traditional Gaming: Traditional brick-and-mortar casino gaming generated quarterly revenue of $12.38 billion, a contraction of 0.9 percent year-over-year.
- Legal Sports Betting: Americans legally wagered $30.3 billion on sports, generating $3.24 billion in quarterly revenue (+42.4% YoY). Recent market launches in Kentucky, Maine, North Carolina and Vermont contributed to this growth.
- iGaming: iGaming generated $2.08 billion in revenue, marking a 30.3 percent year-over-year increase.
“Q3 2024 continued gaming’s momentum from the first half of the year, with online casino and sports betting driving strong growth. At the same time, new brick-and-mortar casino openings bolstered traditional gaming, which still accounts for the bulk of industry revenue,” said AGA Vice President of Research David Forman. “More than a quarter of commercial revenue now regularly comes from online sources, raising the importance of continued sustainable growth with consumers in those states.”
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