DraftKings revenue grew 53% in the first quarter of 2024, the gaming company reportedin its first quarter earnings call.
DraftKings, which recently launched a North Carolina sportsbook, enjoyed a $405 million year-over-year increase in Q1.
The sportsbook and iGaming operator reported revenue of $1.18 billion during the first three months of 2024, outpacing 2023 1Q revenue of $770 million.
The spike can be attributed to higher hold percentage, better customer retention, and new markets like North Carolina, said DraftKings CEO Jason Robins.
“DraftKings’ performance in the first quarter of 2024 was outstanding, reflecting healthy revenue growth and a scaled fixed cost structure that positions us to drive rapidly improving adjusted EBITDA.”
Promo Spending by Sportsbooks in NC Second Only to Maryland
DraftKings Sportsbook debuted in two markets earlier this year, Robins told investors. North Carolina sports bettors wagered In excess of $650 million on sports in the first three weeks since the March 11 launch.
“We successfully launched our online sportsbook in Vermont and North Carolina with highly efficient customer acquisition,” said Robins.
North Carolina does not release total handle for specific sportsbooks. April revenue totals on overall sports betting numbers will be released mid month.
NC sportsbook promotional offers have been a spark for the rapid success of sports betting in the Tar Heel State. In the first month of legal sports betting, sports betting operators in NC spent $202 million on promotions. That figure is reportedly second only to Maryland for highest promo spend in a new market.
DraftKings Raises Its Midpoint Projections
DraftKings reported that its customer retention and unique monthly user figures have grown tremendously in the last year. As a result of its solid first quarter, DraftKings is raising its projections for fiscal year 2024.
Its midpoint projections are now at $4.9 billion. In terms of adjusted EBITDA (earnings before interest, taxes, depreciation and amortization), the company has changed its midpoint to $500 million, as compared to $460 million projected prior to Q1.
DraftKings revealed during Friday’s report that it has 3.4 million monthly unique players in the US and Canada. Each accounted for an average of $114 in revenue during Q1. That’s an impressive 25% YoY increase.
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