DraftKings released its Q4 financials on Thursday, giving some interesting insight into what it dubbed the most bettor-friendly NFL results for at least 40 years. The favorites won at least 75% of the games in during the first ten weeks of the regular season, the most since 1983.
This impacted the Boston-based operator’s bottom line, with EBITDA dropping 40% year-on-year for the quarter as a result. The NFL is usually the most lucrative time of year for sportsbooks, but 2024 was a big outlier.
taking on board 3.5 million new customers last year
However, DraftKings’ overall results were encouraging, helping its share price rise 8% in early morning trading on Friday. It has successfully managed to lower customer acquisition costs, taking on board 3.5 million new customers last year.
DraftKings CEO Jason Robins is bullish about the soon-to-launch legal sports betting market in Missouri. The current timeline is for sportsbooks to go live between the end of June and the start of September.
An underrated part of its business model is performing well: online casino operations jumped from $361m in revenue in Q3 to $432m in Q4. This segment offered much higher margins than sports betting. The company believes that iGaming expansion beyond the current seven states is inevitable.
