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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%

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DraftKings Set to Launch Top-Rated Online Sportsbook in Vermont on January 11

 

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.

Latin America

THE WINNING BET: NAVIGATING BRAZIL’S EVOLVING SPORTS BETTING MARKET

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BETBY, a leading provider of sports betting solutions, is pleased to announce the release of a comprehensive industry report titled “The Winning Bet: Navigating Brazil’s Evolving Sports Betting Market”. This insightful report provides a deep dive into the intricacies of Brazil’s dynamic sports betting landscape, offering valuable insights for businesses looking to capitalize on this burgeoning market.

The report covers various key aspects, including:

· Historical background of sports betting regulations in Brazil;

· The state of digital connectivity in Brazil, including internet usage and mobile connectivity;

· In-depth analysis of player betting behavior, revealing trends and preferences among Brazilian sports bettors;

· Market potential and growth projections for the Brazilian sports betting industry;

· Recommendations for businesses aiming to succeed in the Brazilian market.

With Brazil’s recent regulatory changes opening up new opportunities in the sports betting sector, understanding the nuances of the market has never been more critical. This report equips businesses with the knowledge and insights needed to navigate Brazil’s evolving sports betting landscape successfully.

For businesses seeking to establish a presence or expand their operations in Brazil’s sports betting market, Betby offers tailored sportsbook solutions and expertise to meet their needs.

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Hacksaw Gaming Scores Again in New Market – Another Exciting Launch with Betsson Group to Fire Up Buenos Aires!

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Hacksaw Gaming Scores Again in New Market - Another Exciting Launch with Betsson Group to Fire Up Buenos Aires!

 

Following a long standing partnership formed in 2021, Hacksaw Gaming and Betsson Group have surpassed some major milestones together. Showcasing our vibrant portfolio of games in markets such as the UK, Croatia, Greece, Italy, Denmark, Estonia and Mexico, our relationship with Betsson is an ever developing one.

Buenos Aires is a vibrant regulated market with significant potential for growth within the digital online gaming community. Players can now enjoy unique and innovative games such as Wanted Dead or a Wild, Le Bandit and R.I.P City for the first time ever, and we can’t wait for them to immerse themselves in the Hacksaw experience.

Impressively, this is our third expansion with Betsson in the last 4 months, having gone live with many fan favourites in both Croatia, Spain and now Buenos Aires. Equally noteworthy, looking at Betsson’s multiple brands Nordicbet, Betsafe, Europebet, Starcasino.IT and Casinoeuro to name a few, it’s not difficult to see why they’re one of the biggest fish in the vast online gaming ocean.

Founded in 1963 and starting off their industry leading operations with just a humble slot machine, Betsson Group is now an industry pioneer with licences in 23 jurisdictions. “We couldn’t be more thrilled to mark another pivotal moment in our partnership with Hacksaw Gaming.” Kevin Saliba – Commercial Director, Business Development went on to say, “This latest launch not only strengthens our bond but also promises to elevate the gaming experience for our players in Buenos Aires, who are in for a treat with Hacksaw’s exceptional portfolio of games.”

Marcus Cordes, Hacksaw Gaming CEO is just as delighted with the growth – “Expanding on what Betsson has stated, we’re elated to extend our game offerings to yet another jurisdiction of their esteemed players. Looking toward the journey ahead, we’re eager to further enrich their gaming experience in the days to come.”

Looking forward we can only imagine the possibilities ahead with Betsson.

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Latin America

Elevating Colombia’s iGaming: Amusnet Partnership with WPlay

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Amusnet Partnership with WPlay

 

Amusnet, is enhancing its presence in Colombia through a strategic partnership with WPlay – the country’s highly recognized online casino and sports betting website. The collaboration represents a synergy of expertise and resources, combining innovative gaming solutions with established presence and market knowledge.

“We are thrilled to collaborate with one of the leading operators in Colombia. Together, we aim to deliver unparalleled gaming experiences to players in Colombia and beyond, setting new standards of excellence in the industry. This new partnership signifies a mutually beneficial agreement to all stakeholders, particularly our valued players,” Daniel de los Ríos, Commercial Manager Latam of Amusnet.”

The CEO of WPlay, Julio Cesar Tamayo, comments: “We are pleased to have Amusnet’s games on WPlay. We understand the importance of this provider on an international level and the interest it generates among Colombian players. Looking forward to achieving great results together!”

Currently, Amusnet has over 40 live games available at wplay.co. The company anticipates expanding this number to 70 by next month to reach 100 live games by the end of the year. Players can enjoy some of our most popular and well-performing online casino slots. 40 Super Hot, Burning Hot and Shining Crown are only a few examples of the continuously growing portfolio of Amusnet games offered on the WPlay website.

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