By
Jane Shaw
Senior Editor Updated: 11/20/2024
We count on Jane to inform our readers about the latest slot games in the US market. With her passion for video games and a degree in engineering, she’s our gambling tech expert. Jane’s also active in our blog section, where she tackles the curiosities and changes in the industry.
DraftKings Downgrades on Full Year Revenue
Popular fantasy sports and sports betting company, DraftKings has cut its full year revenue estimate for 2024. This is because of a bad run of NFL results, resulting in a tough start to the last quarter of 2024. The company had previously stated that sales would peak at roughly $5.25 billion, but has since dropped the estimated amount to between $4.85 billion and $4.95 billion. The overall profit will then also be lower than was expected, ranging between $240 million and $280 million compared to the previous estimation of between $340 million and $420 million.
In an interview with CNBC’s Jim Cramer, DraftKings CEO Jason Robins said that, “sports betting is at a turning point as more people across the country realize they can gamble legally.” Robins stated that “the business remains in a heavy acquisition period that isn’t slowing down.” He then went on to say,
there is still a lot of room for growth because the industry is fairly new.
Sports betting is currently legal in 38 states and Robins is optimistic that a few other states will come around soon, but might take a while to go through the state legislative process. Texas, Florida and California are the main states considering legalizing sports betting and Robins hopes DraftKings will get those three. He expects most states to have some form of legal sports betting in the long run.
Jason Robins has reassured investors with DraftKings projected EBITDA growth in 2025. The FY25 adjusted from $900 million to $1 billion would make the impact of the bad run of sports results less noticeable. Robins has stated that in 2025 the adjusted EBITDA will double at the top end of their guidance range, along with revenue only rising by 31%. So as the business generates more EBITDA, these results are more rounding errors.
DraftKings have introduced new revenue alongside its Q3 results, estimating revenue to be in the range of $6.2 billion to $6.5 billion for full year 2025, this is a growth of about 31% year-over-year.
DraftKings have predicted continued revenue growth and improvements in EBITDA for 2025, this has left analysts questioning CEO Robins on where he sees room for growth and improvement next year and in the future. Robins has said that he hopes to see Georgia, Minnesota and Texas as states progressing in terms of sports betting in 2025. Missouri, which recently passed sports betting is also on his agenda for next year. In terms of online casinos, Robins stated that Illinois, New York, Maryland and North Carolina are strong prospects for improvements and progress next year.
Robins also stated that DraftKings doesn’t need to expand internationally, although it is not completely off the cards.
Jane ShawNovember 22, 2024Read More
Jerry SmithNovember 18, 2024Read More
Jane ShawNovember 15, 2024Read More
Jane ShawNovember 13, 2024Read More