DraftKings launches $500m loan facility
The loan follows DraftKings’ recent report of its financial results for both the fourth quarter of 2024 and FY2024, including a net loss of $507.3m during the year.
Key Points
- The operator stated that it intends to utilize the net proceeds of the loan for general corporate purposes
- DraftKings also managed to generate $4.8bn throughout FY2024, representing an increase of 30.1% from the prior year period
DraftKings has launched a proposed senior secured term loan B facility in an aggregate principal amount of $500m, which is still subject to market and regulatory conditions.
The operator stated that it intends to utilize the net proceeds of the term loan B for general corporate purposes.
DraftKings also reported its financial results for both the fourth quarter of 2024 and full year (FY) on February 13, having generated $4.8bn throughout FY2024 for an increase of 30.1% year-over-year.
While the operator still reported a net loss of $507.3m during the period, the figure still equates to a decrease of nearly $295m from the loss reported during FY2023.
Good to know: Live! Casino & Hotel Louisiana agreed to a new partnership with DraftKings that saw a retail sportsbook location open at the $270m-plus Cordish Companies property on February 13 as part of a grand opening event
“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,” DraftKings Co-Founder and CEO Jason Robins said.
“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.”
Possibly due to the positive results seen throughout FY2024, DraftKings also announced that it will be raising the midpoint of its FY2025 revenue guidance to between $6.3bn and $6.6bn. The operator stated that the figures would represent an approximate 35% year-over-year increase in revenue from FY2024.
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