Even in the face of a pandemic, daily sports and fantasy sports betting platform DraftKings experienced 30% year-over-year revenue growth in the first quarter. The gains however, weren’t enough to prevent a net loss of $68.7 million on its $88.5 million in revenue, marking a worse than expected performance.
The revenue growth was credited to products rolled out in spite of the absence of live sports. DraftKings – and other daily fantasy platforms – were quick to build out betting options on eNASCAR and esports. They also debuted free-to-play offerings for TV shows.
The numbers through the period ending March 31 will be the last for DraftKings as a standalone. The company merged with SBTech and Diamond Eagle Acquisition Corp. to create “the only vertically integrated sports betting company in the United States.” It retains the DraftKings name and went public in April.
DraftKings also reported that it doesn’t foresee COVID-19 impacting its fiscal year 2021 or other long-term plans. The company recently launched retail and online sports betting operations in Iowa, as well as iGaming in Pennsylvania and an online sportsbook in Colorado. With nearly $500 million in cash, DraftKings is optimistic as 14 states are currently considering legalizing sports betting in addition to the 18 that offer it now.