DraftKings Reports $875 Million In Second Quarter 2023 Revenue, Up 88% From Last Year

As the market closed today, DraftKings released its official financial report for the second quarter of the year. There are plenty of highlights from the report, such as a massive quarterly revenue of $875 million.

The first quarter DraftKings report showed that 2023 was off to an excellent start for the betting operator, which saw an 84% year-over year improvement in revenue. The financial numbers for DraftKings will be interesting to watch throughout the remainder of the year, with the online betting app looking to roll out in Kentucky this September.

DraftKings Second Quarter Shows 88% In Year-Over-Year Revenue Growth

DraftKings Inc. has just released its financial report for the second quarter of 2023 (three months ending on June 30, 2023), and there are numerous positive takeaways. When compared to the second quarter of 2022, Q2 2023 has improved 88%, with reported revenue of $875 million. Additionally, monthly unique payers (MUPs) increased 44% from Q2 2022 to Q2 2023, with this year seeing an average monthly total of 2.1 million.

In response to the positively trending numbers, DraftKings has raised its fiscal year guidance for 2023 from $3.135-3.235 billion to $3.46-3.54 billion. This previous guidance number was announced during the release of the company’s first quarter fiscal report. DraftKings is also projecting $1.2 billion in revenue for the fourth quarter of 2023, along with between $150 million and $170 million in Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA).

DraftKings Q1 Results Were Also Very Encouraging

The first quarter 2023 report for DraftKings Inc. was released on May 4, 2023. There was quite a bit of information to check out in the report, although the biggest takeaway was the quarterly revenue of $770 million.

This eclipsed the first quarter of 2022, which brought in $417 million in revenue, by a massive 84%. According to the report, this massive jump in numbers can be attributed to a number of factors, such as improving hold percentage with further developments, major efforts in new customer acquisition, and less promotion in states where DraftKings is already available.

However, that wasn’t the only number on an incline for DraftKings. As was the case with the second quarter, DraftKings saw more yearly improvement in MUPs. Between the first quarter of 2022 and 2023, DraftKings MUPs increased 39% to 2.8 million. There was also a 35% increase in Average Revenue per MUP, which totaled $92 in Q2 2023.

This shows high retention throughout various recent sports betting state launches, with the last year alone bringing legal wagering to Ohio, Massachusetts, Maryland, and Kansas, with one more launch planned for later this year. The numbers also reflect the success of DraftKings Casino Online, which has expanded into iGaming markets such as New Jersey, Michigan, Pennsylvania, and West Virginia.

DraftKings Sportsbook Sets Its Sights On Kentucky

Kentucky sports betting is gearing up to launch on September 7, 2023 for retail wagering and September 28, 2023 for mobile betting. DraftKings Sportsbook is expected to be one of the first mobile betting apps available in the state, alongside FanDuel Sportsbook, WynnBET Sportsbook, Circa Sports, and BetMGM Sportsbook.

The launch would build on the availability of the DraftKings Sportsbook platform, which is now available to 44% of the United States population. Leading into the rollout of DraftKings Sportsbook Kentucky, the platform already has a presence in the state with its horse racing app DK Horse and daily fantasy sports site.

DraftKings could also strike partnerships for retail sports betting locations at horse racing tracks in the state such as Turfway Park Racing & Gaming, Cumberland Run, and Churchill Downs.