CEO and co-founder of DraftKings, Jason Robins, has hailed his company’s ‘outstanding’ performance in Q1 as the betting and gaming giant adds another tech firm to its portfolio.
DraftKings reported a 52.7% year-on-year growth in revenue for the period to March 31. The first quarter figure of $1.18bn compares with $769.7 million for 2023. The result meant DraftKings has increased its full-year guidance for both revenue and EBITDA.
Meanwhile, reports suggest DraftKings is set to acquire software solution provider Sports IQ Analytics. The Vancouver-based operation uses AI and machine learning to inform odds and pricing for the sports betting industry. In particular, Sports IQ Analytics serves live betting markets, covering some 12,000 events and hundreds of live games annually.
The move is just the latest buy-out and strategic partnership for DraftKings. In February, it agreed to acquire lottery app Jackpot as it develops its iGaming offering while in the world of sportsbooks, the DraftKings sportsbook entered into a multi-year tie-in with Barstool Sports.
That deal was announced shortly after Super Bowl LVIII in 2023. It came as the original Barstool founder, David Portney took it back from Penn Entertainment, themselves now operating under the ESPN Bet brand.
In an insightful statement, Robins pointed to the continued expansion of DraftKings so far in 2024. That includes two areas in which other sportsbooks have struggled - effective engagement with existing customers and attracting new players.
A standout fact was that DraftKings increased its number of Average Monthly Unique Players (MUPs) by 23% on the same period last year. That number had hit 3.4 million by the end of Q1 2024. A further metric highlighted on the same theme was that average revenue earned per MUP (ARMUP) stood at $114, a rise of 25%.
DraftKings has also recently launched into new jurisdictions this year, notably Vermont and North Carolina. The brand now has a presence in 25 US states and has its sights set firmly on South America next.
In addition to expanding geographically, DraftKings has forged a notable partnership with Apple, integrating their betting odds into Apple's sports application. This collaboration not only enhances the visibility and accessibility of their services but also significantly amplifies their brand presence across diverse markets. By associating with a globally recognized brand like Apple, DraftKings leverages a vast platform to reach more users and effectively broadcast their cutting-edge betting technologies.
Robins also talked up his company’s structural changes such as a refined strategic approach to upping hold percentages and using promotional activity more effectively. A boardroom reshuffle earlier this year appears to have paid off in style.
The purchase of Sports IQ can only strengthen DraftKings further. Founded in 2018, the advanced odds makers have a growing reputation for innovating at the forefront of sports betting tech. The use of Artificial Intelligence and machine learning in the industry continues to develop rapidly.
As well as pricing and live betting solutions, the Canadian software provider also specializes in player prop markets. The development is a significant one for both entities but also for the wider sports betting industry as DraftKings continues to leverage its clout against rivals including FanDuel, Caesars and BetMGM.
As DraftKings continues to excel in its financial and strategic endeavors, it positions itself as a leader among regulated NY betting sites and beyond. This dynamic growth, backed by impactful acquisitions like Sports IQ and strategic partnerships, ensures DraftKings remains at the forefront of the sports betting industry.
Their proactive approach not only expands their market presence but also enhances the betting experience for users across multiple jurisdictions. As they look to the future, the company's robust performance in Q1 is just a precursor to the potential they hold in revolutionizing the betting landscape.
