DraftKings Revenue Falls Short in Q3

DraftKings generated $213 million in revenue in Q3 2021 — a 60% increase year-over-year — but missed Wall Street estimates of $236.1 million for the quarter partly because of unfavorable NFL game outcomes. 

Jason Park, DraftKings CFO, said revenue “would have been $40 million higher” in Q3 if NFL games had gone the company’s way, but more favored teams often won and there were fewer upsets. 

After launches in Wyoming, Arizona, and Connecticut in Q3, the operator is live with mobile betting in 15 states, giving it access to 29% of the U.S. population.  

DraftKings saw monthly unique payers grow by 31% during the quarter, with 1.3 million unique paying customers each month of Q3. Average revenue per payer increased 38% year-over-year.

DraftKings has been looking to grow its business through acquisitions. 

• It agreed to acquire Golden Nugget Online Gaming for $1.56 billion in August.
• It reportedly submitted a bid to purchase The Athletic. 

Last month, DraftKings pulled its bid to acquire Entain after making a $22.4 billion offer for the British gambling operator.

The company expects full-year revenue to range between $1.24 billion and $1.28 billion.