DraftKings reports net loss of nearly $293.7m for Q3 2024

DraftKings sportsbook has announced its financial results from the third quarter of 2024, reporting an increase in total revenue, but a net loss of close to $293.7m throughout the period. The net loss is an increase over the $283.1m figure reported during Q3 2023, and follows the first profitable quarter to be reported by DraftKings during the second quarter of 2024. 

The operator managed to generate a net income of $63.8m for Q2 2024, but still saw a loss from operations of $32.4 throughout the period. Loss from operations was reported to be nearly $298.6m during the third quarter of 2024, an increase of 4.2% year-over-year. 

DraftKings’ revenue managed to increase by 39% from the prior year period, however, reported to be close to $1.1bn during Q3 2024. The operator stated that the increase was primarily driven by its expansion into new jurisdictions, the impact of its Jackpocket acquisition, higher hold percentages and improved promotional reinvestment for sportsbook and iGaming. 

“DraftKings delivered strong performance in the third quarter with the return of NFL and college football,” DraftKings Co-Founder and CEO Jason Robins said. 

“With major sports converging on the calendar, we are well-positioned to build on this momentum as we further enhance our top-ranked sportsbook app with additional live betting features and exciting new NBA markets. Our focus remains on driving sustainable revenue growth and profitability in 2025 and beyond.”

The operator also managed to decrease its adjusted EBITDA loss from the prior year period, reducing the $153.4m figure reported during Q3 2023 to $58.5m for the third quarter of 2024. 

Good to know: DraftKings Casino announced the launch of its Electric Poker game in the state of Pennsylvania on October 15 after originally debuting the game in Michigan

“We achieved healthy results across our core value drivers in the third quarter with efficient customer acquisition and promotional reinvestment as well as improvement in our structural sportsbook hold percentage,” DraftKings CFO Alan Ellingson said. 

“The midpoint of our inaugural fiscal year 2025 revenue guidance equates to 31% year-over-year growth, and we are well-positioned to deliver $900m to $1bn of adjusted EBITDA in 2025.”

DraftKings also stated it expects to launch its sportsbook product in both Missouri and Puerto Rico shortly, pending market access, licensure, regulatory approvals and contractual approvals where applicable.

Kirk Geller

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