DraftKings has reported its Q2 earnings, and the sports betting company has to be pleased with the results.
For Q2 2023, DraftKings reported a revenue of $875 million and a positive adjusted EBITDA of $72.9 million.
The $875 million in revenue is an increase of 88% compared to the same period in 2022 when the company reported a revenue of $466 million.
DraftKings Sportsbook Massachusetts was among the first sportsbooks to launch in the Commonwealth when the online sports betting industry went live earlier this year.
Keys to DraftKings’ success
In a press release, DraftKings contributed the rise in revenue to healthy customer retention and engagement, improved promotional intensity, as well as efficient acquisition of new customers.
The platform also pointed to product innovation leading to increased parlay mix, which helped lead to a higher hold percentage.
“DraftKings produced outstanding results for the second quarter of 2023,” DraftKings CEO and Co-founder Jason Robins said in the release. “We grew revenue at an impressive year-over-year rate, captured additional GGR share in a cost-effective manner, and maintained our focus on operational efficiency.”
Robins also states that the company is on pace to achieving positive adjusted EBITDA in the fourth quarter this year.
“The positive adjusted EBITDA that we generated in the second quarter exceeded our guidance, and we are well on our way to achieving positive Adjusted EBITDA again in the fourth quarter of 2023 and for fiscal year 2024 and beyond,” Robins said.
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Home field advantage
Based in Boston, DraftKings is capitalizing on its home turf. Since going live on March 10, Massachusetts bettors have wagered $921.9 million using DraftKings Sportsbook.
In turn, DraftKings has generated a total revenue of $89 million, and has provided $17.8 million in taxes to the state. Those figures lead all Massachusetts sportsbooks.
FanDuel Sportsbook Massachusetts is DraftKings’ closest competitor in the Commonwealth, handling $585.1 million in bets and generating $68.4 million in revenue.
What’s next for DraftKings?
In total, DraftKings is live with mobile sports betting in 21 states that collectively represent approximately 44% of the U.S. population.
Kentucky is up next, as DraftKings expects to launch its sportsbook in the Bluegrass State on Sept. 28.
Down the road, DraftKings is eyeing launches in North Carolina, Vermont, and Puerto Rico.