During a recent earnings report, DraftKings CEO Jason Robins discussed the future of Kentucky Sports Betting. Kentucky regulated sportsbooks earlier in the year and is aiming to launch the market in 2023. There has been no official launch date or window set as of yet, but Robins believes more clarity will arrive by August.
DraftKings Sportsbook is targeting a Kentucky launch and included that in its projections for future potential growth.
Robins On Kentucky Sports Betting
In the earnings report, DraftKings shows that Kentucky is a part of the company’s “Expanded Mobile Sports Betting Footprint.” In particular, Kentucky and Puerto Rico both authorized mobile sports betting and are a part of DraftKings’ strategy to claim another 2% market share.
Speaking to investors, Robinson mentioned that he expects Kentucky lawmakers to have a clear timeline by August. DraftKings meets for another earnings report then.
“Kentucky, of course, already passed this year,” Robins said. “We don’t have any update yet on the timing of launch, but we expect by our August call, we’ll have a little bit more clarity there and can factor that into any future guidance to the extent that it’s relevant to this year.”
With Kentucky included in its projections, DraftKings is expecting $3.235 billion in revenue for 2023. This would be a slight bump from the $3.135 billion in 2022.
DraftKings Earnings Report Breakdown
Kicking off the year DraftKings have already seen a reported $770 million in revenue. This is an 84% increase year over year compared to the $417 million in revenue during this period in 2022.
“DraftKings’ first quarter performance – 84% year-over-year revenue growth and share gains underpinned by a relentless focus on operational efficiency – demonstrates that this is a company positioned for sustained success. We delivered highly successful online sportsbook launches in Ohio and our home state of Massachusetts and continued to create meaningful product differentiation driven by in-house innovations. We acquired customers faster and more efficiently and, importantly, saw healthy retention across cohorts. Looking at the remainder of 2023, I am confident DraftKings is well-positioned to achieve profitability on an Adjusted EBITDA basis in the near-term and deliver long-term value for our shareholders.”
Jason Robins, DraftKings’ Chief Executive Officer and Co-founder
Two main points have contributed to the steady growth of DraftKings in 2023. Monthly Unique Players (MUP) and Average revenue per MUP (ARPMUP). DraftKings has seen MUPs increase to 2.8 million on average so far in 2023. This represents a 39% increase year over year. A combination of player retention and acquisition drives the growth.
The ARPMUP was $92 in the first quarter, a 35% increase year over year. The company saw larger hold rates across the board as well as a reduction in promotional efforts. DraftKings’ success is only expected to continue this year with Kentucky sports betting incoming.
