DraftKings Looks Ahead To Massachusetts And Maryland Launches

Written By Giovanni Shorter on November 7, 2022
DraftKings Earnings Report

DraftKings has released its 2022 Q3 earnings report which shows a massive revenue increase year over year. In addition, the report reveals projections for the Maryland and Massachusetts sports betting markets once they go live. Maryland is expected to launch Q4 2022 with Massachusetts sportsbooks planned for Q1 2023.

DraftKings Successful Third Quarter

In the official report, it is revealed that DraftKings saw an increase in quarterly revenue of 136%. The sports betting giant saw $522 million in quarterly revenue. This raises the total 2022 revenue guidance and 2022 Adjusted EBITDA guidance.

This time last year, DraftKings saw $213 million during Q3. The company is clearly growing with expanded markets as the overall growth of sports betting popularity in the US.

“DraftKings had a very strong third quarter. Our team continued to drive top-line growth through highly effective customer engagement and compelling product and technology enhancements while remaining focused on our path to profitability. For the NFL season, we made investments in our mobile Sportsbook product, creating a differentiated and fun customer experience, and also realized unique marketing optimization benefits as an operator with truly national scale. Throughout 2022, we’ve struck the right balance between delivering differentiated top-line growth and driving operating efficiencies. We continue to be confident that we will achieve positive Adjusted EBITDA in the fourth quarter of 2023 based on the visibility we have into expected state launches.”

Jason Robins, DraftKings’ co-founder, Chief Executive Officer and Chairman of the Board.

The increase in revenue stemmed from a 1.6 million increase in monthly unique players (MUP) on average. This is a 22% uptick in monthly activity compared to 2021. What this shows is that DraftKings is succeeding in player retention as well as player growth.

The average revenue per MUP has also gone up 114% compared to last year. The overall average revenue has been $100 per player. Not only are more players wagering, but they are overall contributing more revenue per player.

Optimism For Strong Future

With the upcoming launches of both Maryland and Massachusetts sports betting, DraftKings is projecting more quarterly growth. The current guidance for Q4 2022 and Q1 2023 are both predicated on the addition of these two markets.

The 2022 revenue guidance range is now set between $2.16 billion and $2.19 billion. The original range was between $2.08 billion and $2.18 billion. DraftKings is expecting an uptick with the new market in Maryland as well as the continued growth in MUPs.

2023s adjusted revenue guidance is now in the range of $2.8 billion to $3 billion. This would represent a 33% year-over-year growth compared to 2022. DraftKings continues to grow as a major betting force in the US.

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Giovanni Shorter

Giovanni Shorter is a sports enthusiast and writer with a passion for the legal and industry side of the sports betting market. Giovanni got his education from Florida State University where he honed his writing style writing narratives and short stories. He has spent his professional career covering sports and entertainment through articles and blogs and continues to look at the industry from multiple angles.

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