DraftKings reports Q1 2025 revenue increase of 19.9% to $1.4bn

While the operator still witnessed a net loss of $33.9m throughout the first quarter of 2025, the figure represents a decrease of nearly $110m from the loss generated for Q1 2024.

DraftKings has reported its financial results from the first quarter of 2025, including an increase in revenue of 19.9% year-over-year for a total of $1.4bn, while sportsbook revenue accounted for nearly $882m and grew 20.1% from the prior year period. 

The operator also reported a net loss of $33.9m throughout Q1 2025, but managed to decrease the total by close to $110m from the loss witnessed for Q1 2024. DraftKings’ adjusted EBITDA for the first quarter of 2025 was $102.6m, representing a significant increase of 358.4% from the prior year period. 

DraftKings’ stated the increase in revenue was driven primarily by healthy customer engagement, efficient acquisition of new customers, higher structural sportsbook hold and the impact of the acquisition of Jackpocket Inc., which closed on May 22, 2024. The operator also expects to launch its sportsbook product in Missouri pending market access and regulatory approvals, following the state’s legalization of sports betting during November 2024. 

“Recent product enhancements are driving outperformance in our core value drivers, and our customer metrics continue to be strong through an evolving macroeconomic environment,” DraftKings Co-Founder and CEO Jason Robins said. 

“If not for customer-friendly sport outcomes in March, we would be raising our fiscal year 2025 revenue and adjusted EBITDA guidance.”

DraftKings is revising its fiscal year 2025 revenue guidance to $6.2-$6.4bn, a decrease from its previous guidance of $6.3-$6.6bn announced on February 13, 2025, while the operator’s adjusted EBITDA guidance of $900m-$1bn was revised to $800-$900m.

Good to know: Flutter Entertainment released its financial results from the first quarter of 2025 on May 7, having witnessed an increase in revenue of 8% year-over-year to $3.7bn, of which FanDuel accounted for over $1.1bn

The increase in revenue from DraftKings’ sportsbook operations may be attributed to a rise in handle year-over-year, having grown 15.7% from the prior year period to nearly $13.9bn, leading to a sportsbook net revenue margin of 6.4%. 

iGaming revenue also managed to increase its revenue for Q1 2025 by 14.5% year-over-year for a total of $423.5m, while other revenue grew by 45.7% from the prior year period to $103.4m. 

DraftKings reported its cost of revenue for the first quarter of 2025 was $843.8m, equating to an increase of 18.8% year-over-year, while sales and marketing accounted for an additional $343.7m of expenses, rising by just $3m from the prior year period. 

Monthly unique players were reported to have increased by 28% year-over-year to 4.3m for Q1 2025, said to reflect “strong unique player retention and acquisition” across DraftKings’ sportsbook and iGaming product offerings as well as the impact of the Jackpocket acquisition.

Kirk Geller

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