DraftKings: Average Monthly Unique Players Surge 44% to 2.1 Million

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DraftKings posted second-quarter earnings results that showed increased presence within the online betting space, a boost in average users and gains in revenues per user.

The average monthly unique players metric showed that the roster was up 44% to 2.1 million, from 1.5 million in the June quarter a year ago.

The average revenue per average monthly unique players was $137, gaining ground from $103 last year.

Presentation materials showed the company captured share in the online sports betting (OSB) market, where the company estimated its “handle” share in the most recent quarter stood at 35%, up from 27% a year ago, while revenue share grew to 32% from 20% last year. Its gross revenue share in iGaming was 27% versus 21% last year.

CEO Jason Robins said during a conference call with analysts that the respective shares are “the highest they have been since the COVID-impacted second quarter of 2020.”

Chief Financial Officer Jason Park said that increased share and usage helped drive revenues more than 70% higher, to just under $875 million. The shares were up 6% in intraday trading Friday (Aug. 4).

Looking Toward Narrowing Losses

During a question-and-answer session with analysts, Robins said the company will endeavor to reduce the gap between its “handle” (the amount of money accepted in terms of wagers) and gross revenue. And, per Park’s remarks, the company is narrowing its guidance for EBITDA losses, tied in part to “stronger customer retention, acquisition and engagement; structural sports book hold improvement; and favorable sport outcomes in the second quarter.”

Asked on the call how the company might reduce some of the friction points in seeking to narrow the gap and capture more revenues, Robins noted that “it’s true of any product in the digital space that there’s always going to be room to optimize your funnels and improve the experience, but particularly in regulated gaming, where there’s a lot of requirements that you have to follow and there’s a lot of states that launch very quickly — so, the focus for us has been on how do we get live and make sure that we’re complying with all relevant laws and regulations.”

Management noted on the call that in states where OSB and iGaming are both available, there’s about 50% cross-over, and the ratio has been consistent over time.

Management also stated on the call that there is potential to leverage artificial intelligence (AI) to boost revenues and reduce costs.

“[R]ight now with our developer efficiency initiatives, we’re focused on how do we get more done with our development team,” Robins said. “So, I think that what that probably means is over time, we don’t need to add as many engineers to get the work done.”