In its latest earnings report, DraftKings posted favorable results following a fiscal year that included new market and product launches.
DraftKings generated $1.3 billion in revenue in Q4 2024, a 13% increase year-over-year. The Boston-based company attributed its revenue growth during the quarter to new market launches, a higher sportsbook hold percentage and its acquisition of Jackpocket.
In Q4, DraftKings closed the period with a structural sportsbook hold percentage of 11.2%.
DraftKings reported a record Super Bowl Sunday on Feb. 9 with total sportsbook handle of $436 million with the operator’s same game parlay handle growing by 40% year-over-year. Super Bowl LIX marked the highest gross gaming revenue day for DraftKings.
The operator closed Q4 2024 with 4.8 million monthly unique paying customers, a 36% uptick compared to the same period the year prior. Average revenue per player was $97.
New product for DraftKings
Last month, DraftKings created a pilot program to introduce a paid subscription service that allows subscribers to access unlimited boost tokens for $20 per month. The paid service, DraftKings+, has been made available to a small pool of select players in New York.
“It’s really early and a very limited pilot,” said DraftKings CEO and co-founder Jason Robbins during the company’s Q4 earnings call. “We don’t have enough data yet at this point but it’s something that I think could potentially have some real interest amongst the broader population from what we’re early on seeing.”
DraftKings has emerged as the first major U.S. operator to offer a subscription service to players. It expects the popularity of parlays to increase the viability of the paid service.
DraftKings in 2025
DraftKings has raised its midpoint FY2025 revenue guidance amid its favorable Q4 results.
The operator expects revenue to range between $6.3 billion to $6.6 billion, up from a previous guidance of between $6.2 billion and $6.6 billion. DraftKings’ latest midpoint revenue guidance for FY2025 is a 35% increase compared to the fiscal year prior.
DraftKings has raised its guidance as it considers markets outside North America.
“Real money online gaming is a large and growing industry with secular tailwinds behind it,” continued Robbins. “We believe we are well positioned to capture significant share and we haven’t even begun to expand outside the U. S. and Canada, which we could explore as a longer-term opportunity.”
DraftKings is also keeping an eye on the emerging and dynamic event contract industry, which has exploded in popularity but faces regulatory scrutiny from the CFTC.
“We are watching it very actively,” Robbins told media during the earnings call. “It’s certainly something that we have a keen interest in seeing how it plays out.”
Event contracts are poised to garner support from new CFTC leadership after the nomination of Brian Quintenz as CFTC Chair by President Donald Trump this week.
In 2021, Quintenz was appointed to the board of prediction market Kalshi, one of the world’s leading event contract providers. As of Feb. 14. Quintenz still holds the role.
DraftKings currently offers online wagering in 25 states and Washington, D.C. It holds iGaming licenses in five states with online sports betting operations also in Ontario.
DraftKings plans to bring its sportsbook to Puerto Rico pending regulatory approvals.
