DraftKings has released its financial results for the fourth quarter and full year 2024, showcasing significant revenue growth alongside increased operating losses. The company reported a total annual revenue of $4.8 billion, reflecting a 30.1% year-over-year increase. However, its net loss for the fourth quarter surged by over 200%, influenced by rising expenses and customer-friendly sportsbook outcomes during the NFL season.
For the final quarter of 2024, DraftKings recorded revenue of $1.39 billion, a 13.2% increase from the same period in 2023. Growth was fueled by steady customer engagement, the company’s continued market expansion, and the integration of Jackpocket, which DraftKings acquired in May 2024. Monthly unique paying customers (MUPs) rose to 4.8 million, marking a 36% increase year-over-year. However, average revenue per MUP (ARPMUP) declined 16% to $97, largely due to the lower spending habits of Jackpocket users compared to DraftKings’ existing customer base.
While revenue climbed, the company’s fourth-quarter net loss reached $139.2 million, an increase of 202.2% from the same quarter in 2023. Higher marketing and operational costs, combined with an unfavorable sportsbook hold rate, contributed to the losses. The cost of revenue rose by approximately $118 million, while marketing expenses increased by over $77 million compared to the previous year.
2025 Revenue Outlook and Market Expansion
DraftKings has raised its 2025 revenue projection, now expecting earnings between $6.3 billion and $6.6 billion. This revision represents an anticipated 35% year-over-year growth. The company has also reaffirmed its adjusted EBITDA guidance for 2025, maintaining its forecast between $900 million and $1 billion.
CEO Jason Robins emphasized DraftKings’ strategic priorities for 2025, including expanding its presence in live betting and cross-selling products across its gaming verticals. “Looking ahead to 2025 and beyond, I am excited to further enhance our customer economics through new initiatives such as extending our lead in live betting and advancing cross-sell efforts to and from new verticals. Our focus remains on driving sustainable growth in revenue and profitability.”
The company continues to expand its footprint in the U.S. gaming market. DraftKings currently operates mobile sports betting in 25 states and Washington, D.C., covering nearly 49% of the U.S. population. Its iGaming platform is active in five states, reaching approximately 11% of Americans. Internationally, DraftKings is available in Ontario, representing 40% of Canada’s population.
Missouri recently approved sports betting through a ballot initiative in November 2024, and DraftKings is preparing to launch operations in the state pending regulatory approvals. The company is also planning to enter the Puerto Rico market once licensing and compliance processes are completed.
Industry Trends and Competitive Landscape
Despite its revenue growth, DraftKings faced industry-wide challenges in the fourth quarter. The sportsbook sector experienced one of its most bettor-friendly NFL seasons in decades, leading to lower sportsbook hold rates. Robins noted that the NFL results in 2024 were “the most customer-friendly NFL sport outcomes in over 40 years.”
DraftKings is also encountering new competition beyond traditional sportsbooks. Fintech companies such as Kalshi, Robinhood, and Crypto.com are entering the sports betting space, offering alternative betting markets. Meanwhile, major rival FanDuel revised its annual revenue forecast downward by $370 million due to the same unfavorable NFL betting trends that impacted DraftKings.
Positive Adjusted EBITDA and Future Profitability
A significant milestone for DraftKings in 2024 was achieving its first-ever positive adjusted EBITDA, totaling $181.3 million, a sharp improvement from a $151 million adjusted EBITDA loss in 2023. However, the company’s total net loss for 2024 still stood at $507.3 million, though this figure marked a 36.8% improvement from the previous year’s $802.3 million loss.
The company’s stock price has responded positively to its earnings report, rising about 25% in 2025 so far. DraftKings’ ability to maintain growth while managing rising costs will be crucial as it moves forward. With continued expansion into new markets and its first profitable year in terms of adjusted EBITDA, DraftKings remains a key player in the evolving online gaming industry.