DraftKings Raises Full-Year Guidance Amid $1.5B Loss

    • DraftKings raised its revenue guidance for the financial year.
    • However, the sportsbook saw its shares tumble on Friday due to concerns over profitability.

DraftKings raised its revenue guidance for the financial year following the sportsbook’s latest earnings report on Friday, but its shares took a tumble due to concerns over profitability. 

The Boston-based company generated $473 million in revenue in Q4 2021, a 47% increase compared to the same period the year prior. Despite the growth, DraftKings posted a loss of $326 million during the quarter, a steep jump from a $243 million loss in Q4 2020. 

Losses for the full FY2021 reached $1.5 billion in FY2021, up from $1.2 billion in 2020. 

DraftKings expects FY2022 revenue to range between $1.9 billion and $2 billion, a slight uptick from a previous target between $1.7 billion and $1.9 billion. The company attributes the projected growth to the recent launch of mobile sports betting in Louisiana and New York

DraftKings plans to continue its expansion.  

  • The company is exploring market opportunities in Maryland, Puerto Rico, and Ohio.
  • Currently, it offers mobile betting in 17 states — roughly 35% of the U.S. population. 

The company’s shares fell by more than 20% on Friday in response to its reported losses. 

More Than Gambling 

Last December, NFLPA licensing partner OneTeam Partners and DraftKings announced a deal to release products on DraftKings Marketplace during the 2022-23 NFL season.

The two entities anticipate creating NFTs that can be used in games within the DraftKings platform.