On August 6, 2021, DraftKings has published its official financial stats for the second quarter of this year. For the months of April, May, and June, the sports entertainment and betting company has reported revenue of US$298 million. This is a tremendous improvement over the 2020’s Q2 with only US$71 million in revenue.
The company is one for digital sports entertainment and gaming as it offers the industry an exceptional set of products. This includes daily fantasy offerings, regulated gaming, and digital media services. The firm was founded back in 2012 and its headquarters is located in Boston, Massachusetts. Its sportsbook offerings are live in several U.S. states and in many countries from across the globe.
Strong Performance
Jason Robins, who is co-founder, CEO and Chairman of the Board for the gaming corporation, stated that the firm has enjoyed a rather strong second quarter of 2021. In his words, the company maintained an impressive financial record, while still advancing in key areas, such as media and NFTs. He added that the growth opportunities will allow the company to expand its player base and provide additional revenue.
Jason Park, who is CFO of the company, claimed that the corporation recorded strong growth in new customers and revenue. He explained that the Q2 revenue this year is a 297% increase to last year’s same quarter. He also shared that the company saw a rise in its Monthly Unique Payer by 281% and Average Revenue per Monthly Unique Payer by 26%
Currently, the gaming company provides online sports betting in 12 states in the USA, and its iGaming content is live in 4 states. New York State is also one of the potential growth possibilities for the company as the state is looking into legalizing mobile sports betting for the first time. The New York State Gaming Commission has already begun its search for two platform providers and at least four gaming operators.
With the release of the Q2 results, the CEO of the company Mr. Robins revealed that the gaming corporation will be pursuing the opportunity to join the New York gaming expansion. According to him, the company will most likely submit its bid to the gaming commission to become a part of the expansion and experience the market of huge potential.
Request for Applicants
Candidates for the platform provider slots or the gaming operator positions have a 30-day period of time to submit their proposals that concludes on August 9, 2021. Their bids packages will be then assessed by the gaming commission on the basis of different factors, such as tax revenue sharing with the state, along with the willingness to partner with a tribal corporation or a casino.
Most Likely Candidates
Back in April, gaming analyst Daniel Adam pointed to DraftKings and FanDuel as the most suitable and potential candidates for the platform launch of mobile sports betting. The former already has a great relationship with NY tribal operators due to its sportsbook at del Lago Resort & Casino. Mr. Adam described the company as the most favorable for the expansion and put a price prediction on its shares at US$105.
Source: “DraftKings Reports Second Quarter Revenue of $298 Million; Increases 2021 Revenue Guidance to $1.21 Billion to $1.29 Billion”, DraftKings, August 6, 2021
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