Data from the third quarter of 2023 has just been fully released by DraftKings. Not only were the numbers highly encouraging, the company has also increased its predictions for 2024. This has been an interesting week for the mobile betting app, which plans to launch in the Maine sports betting industry following a partnership with the Passamaquoddy Tribe.
DraftKings Q3 Revenue Up 57% From The Previous Year
A new press release has revealed the third quarter financial results for DraftKing Inc. One of the most interesting takeaways is the total revenue for the quarter, which added up to $790 million. That represents a 57% increase over Q3 2022’s $502 million totals.
It should be noted that the third quarter ended on September 30, 2023. A number of different factors can be attributed to these numbers, such as further expansion for the platform in the Kentucky sports betting market and new user acquisition.
Additionally, there was a 40% year-over-year increase for DraftKings when it came to Monthly Unique Players (MUPs), with 2.3 million for Q3 2023. Another important factor to look at is the Average Revenue Per MUP (ARPMUP), which similarly saw an increase from the previous year. Overall, ARPMUP saw a 14% jump in 2023, with a $114 total.
All in all, DraftKings Sportsbook Online is available to around 45% of the population, as the platform has launched in 22 different states. Additionally, approximately 11% of the population have access to DraftKings Casino Online, which is live in Michigan, Pennsylvania, West Virginia, Connecticut, and New Jersey. Both DraftKings Casino and DraftKings Sportsbook have also expanded in the Canadian province of Ontario, meaning access to around 40% of the country’s total population.
Plus, DraftKings has adjusted certain numbers to reflect heightened expectations. While the company’s 2023 revenue guidance was previously $3.46 billion to $3.54 billion, that’s been bumped up to a range of $3.67 billion to $3.72 billion. The company’s adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) has also gone from between $95 million and $115 million to $190 million and $220 million.
DraftKings also appears to have high hopes for 2024, with an adjusted EBITDA of $350 million to $450 million for the fiscal year. The same can be said for revenue guidance, with a 2024 range between $4.5 billion and $4.8 billion.
|Balance Sheet item||Q3 2023 (in thousands)||Q3 2022 (in thousands)|
|Cost of Revenue||$543,454||$372,692|
|Sales & Marketing||$313,324||$321,714|
|Product & Technology||$89,005||$76,299|
|General & Administrative||$130,761||$186,261|
|Loss from Operations||($286,586)||($455,028)|
DraftKings Sportsbook Partners With Passamaquoddy Tribe For Maine Rollout
The release of DraftKings Sportsbook’s Q3 results comes shortly after the announcement that the platform will be launching in the state of Maine. The mobile betting platform will be able to roll out in the Pine Tree State thanks to an agreement with the Passamaquoddy Tribe. Keep in mind that this full launch is still contingent on regulatory and licensing approvals. The full rollout will allow individuals in the state who are 21 years of age or older to sign up for the online betting site and immediately start placing bets.
Individuals from both the Passamaquoddy Tribe and DraftKings expressed excitement over the partnership. In the official press release announcing the partnership, Chief William Nicholas of the Passamaquoddy Tribe said, “We couldn’t have landed a better organization in the mobile sports wagering arena, and we look forward to continued progress and investment for future growth in the state of Maine.”
Similarly, DraftKings Co-Founder and Chief Executive Officer Jason Robbins showed his enthusiasm for the partnership and launch: “We look forward to our continued collaboration with the Maine Gambling Control Unit as we become the official mobile sports betting provider of the Passamaquoddy Tribe and launch in our industry-leading 25th state.”