DraftKings reports 43% revenue increase in FY2019
DraftKings achieved $323m of net revenue in FY2019, a 43% year-on-year rise.
Adjusted EBITDA resulted in a loss of $99m driven by losses of $185m in sales and marketing and $125m in administrative personnel, stock compensation and professional services.
DraftKings launched online sportsbooks in New Jersey, Pennsylvania, West Virginia, Indiana and Iowa over the past year.
Late in 2019 DraftKings announced its plans to go public in a $3.3bn three-way merger with SBTech and Diamond Eagle.
Jason Robins, Co-founder and CEO of DraftKings, said: “This was a transformative year for DraftKings. We further established ourselves as a leader in the rapidly evolving digital sports and gaming industry, launched products in six new states and announced a business combination with Diamond Eagle and SBTech to become a public company.”
Robins said on a conference call that the Diamond Eagle merger is expected to close in the front half of Q2.
DraftKings plans to invest heavily in online gaming according to Robins.
Robins said on the call: “Online gaming has probably been the most pleasant surprise we’ve had since we started entering the regulated gaming market.
“We, of course, believed we would have good crossover with sports, makes sense. Fantasy sports players likely would be interested in sports betting.
“But we’ve also seen tremendous crossover of our fantasy sports players as well as our sports book players to online gaming games like online blackjack, online slots and online roulette and those sorts of things.”
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