DraftKings has reported $4.77 billion in revenue for Fiscal Year 2024, up from $3.67 billion in 2023. Revenue for the fourth quarter of 2024 was up 13 percent on the same period the year prior, reaching $1.39 billion.
Notably, the sports betting giant posted its first positive Adjusted EBITDA, $181.3 million, compared to a negative $151.0 million in 2023.
Updating investors, DraftKings attributed revenue growth and the positive financial outlook to efficient customer acquisition, the expansion of sportsbook products into new jurisdictions, a higher structural hold percentage, and a successful acquisition of Jackpocket Inc. This was despite a season dominated by unfavorable NFL results for the sportsbook.
DraftKings’ Player Growth and Changing Revenue Trends
Highlighting specific user acquisition metrics, DraftKings reported a 36 percent increase in monthly unique players in Q4 2024, up to 4.8 million. Despite the rise in unique players, the average revenue per player decreased 16 percent to $97 in the period. The company attributes the lower average to Jackpocket customers, who tend to have lower average revenue and the aforementioned NFL results.
Jason Robins, Chief Executive Officer and Co-Founder of DraftKings commented: “We continued to efficiently acquire and engage customers, expand structural sportsbook hold percentage and optimize promotional reinvestment in fiscal year 2024, while we simultaneously experienced customer-friendly sport outcomes.”
He continued: “Looking ahead to 2025 and beyond, I am excited to further enhance our customer economics through new initiatives such as extending our lead in live betting and advancing cross-sell efforts to and from new verticals. Our focus remains on driving sustainable growth in revenue and profitability.”
DraftKings is now live with mobile sports betting in 25 states and Washington D.C., thus having access to 49 percent of the total U.S. population. It also runs online casino operations in five states, representing 11 percent of the country’s citizens.
During the year, DraftKings expanded to Ontario, Canada, bolstering its significant North American footprint. DraftKings’ sportsbook products are planned for the 2025 financial year in Missouri and Puerto Rico., pending regulatory approvals.
The company is forecasting strong growth for 2025. In a release, Alan Ellingson, Chief Financial Officer of DraftKings, said, “2024 was a milestone year for DraftKings as we achieved our first year of positive Adjusted EBITDA. Additionally, we began executing on our inaugural share repurchase authorization. With strong underlying health across our core value drivers, we are raising the midpoint of our fiscal year 2025 revenue guidance to $6.45 billion from $6.4 billion and reaffirming our fiscal year 2025 Adjusted EBITDA guidance range of $900 million to $1.0 billion.”
DraftKings Weighs Future in Event Contracts and Crypto Betting
Answering a plethora of questions at the end of the earnings call, Robins remained non-committal on issues such as event contracts and accepting crypto payments. “It’s certainly something we’re looking at. It’s also getting regulators comfortable with it. They’re usually cautious around crypto,” he said.
He emphasized that the company is simply ‘keeping an eye’ on developments surrounding the Commodity Futures Trading Commission and event contracts.
Kalshi, in particular, has been particularly aggressive in pursuing prop-style event contracts and plans to offer contracts for single-match outcomes. It has also pursued several marketing campaigns effectively claiming to be ‘legal sports betting’ in 50 states. The prediction market company’s board member, Brian Quintenz, was recently nominated by President Trump as the new Chair of the CFTC, giving a significant boost to those hoping for an expansion of sports event contracts.
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