DraftKings Reports a Revenue of $466 Million in the Q2 of 2022 Alone

By Todd Winkler,
Editor at online-gambling.com

Todd Winkler Editor at online-gambling.com

Todd Winkler is another one of our highly professional editors at online-gambling.com. The expert has been part of our team for 6 years, during which time he contributed articles regarding poker, blackjack, and DFS. Winkler is also knowledgeable about New Zealand's legal gambling market.

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Last updated: August 8, 2022

DraftKings’ B2C segment revenue grew 68% year-over-year to $455 million, despite a Q2 2022 sports calendar that is not so favorable. Additionally, total revenue and Adjusted EBITDA exceeded the median of their respective forecast ranges for the quarter.

The company, which is the industry leader in sports betting, announced a revenue of $466 million for the second quarter of 2022. Due to its strong performance, the company has increased its revenue and adjusted its EBITDA target for the entire year. DraftKings’ procurement of Golden Nugget Online Gaming contributed to these accomplishments.

DraftKings CEO Believes the Business Maintains a Competitive Edge

As DraftKings approaches the start of the NFL season, its CEO Jason Robins anticipates the company going strong from a competitive standpoint due to continuous investments in core online gaming technologies.

In an interview, Jason Robins stated that customer engagement remained strong and that they continue to see no real impact from broader macroeconomic pressures.

Agreeing with him, Jason Park, DraftKings CFO, reiterated that the company executed exceptionally well in the 2nd quarter. He said they outperformed the midpoints of the Q2 direction ranges for Adjusted EBITDA and revenue. Further explaining, he said that their B2C segment drove growth in revenue due to customer activity that surpassed their expectations.

Amidst Recent Financial Success, DraftKings Attempts to Branch into New Markets

DraftKings is increasing the mid-fiscal year 2022 earnings guidance by $15 million. It is also increasing the midpoint of its Adjusted EBITDA guidance by $60 million. Recent figures show that the MUPs (Monthly Unique Players) rose to 1.5 million average unique paying B2C customers monthly. This is an increase of 30%. DraftKings says the increase is a reflection of strong, unique player acquisition and retention across its products. They also believe it is a result of their expansion into new jurisdictions.

Additionally, during Q2, the average revenue per MUP rose by 30% to $103. This increase was attributed to a powerful customer engagement, a sustained mix shift into the company’s iGaming and Sportsbook products, and a decreased promotional intensity in comparison to the same period in 2021.

DraftKing Targeting New Markets and Launches

Presently, DraftKings is live with mobile sports betting in 17 states. This collectively represents about 36% of the population of the US. Additionally, the company provides iGaming in 5 states, almost 11% of the population of the country.

During Q2, the California Secretary of State, Shirley N. Weber, Ph.D., confirmed that a DraftKings-backed online sports betting initiative had reached the signature threshold that qualifies it to be on November’s ballot. The proposal is openly opposed by the majority of the state’s tribes, who have also qualified another initiative that hopes to legalize retail-only sports games in tribal casinos.

In Massachusetts, the state legislature has passed a bill to legalize online and retail wagering on collegiate and professional sports, subject to executive approval. DraftKings may try to get into this state, which makes up 2% of the population of the US.

Four jurisdictions where DraftKings may be able to operate through a direct license or market access agreement – Maryland, Kansas, Ohio, and Puerto Rico – have legalized mobile sports betting. If licensed, the percentage of the population where DraftKings offers legalized betting will rise to 44%.