Are Cryptocurrency Payments in the Cards for DraftKings?

At the end of DraftKings’ fourth-quarter earnings call Friday (Feb. 14), Co-founder and CEO Jason Robins was asked whether the company would ever accept cryptocurrency payments.

“It’s certainly something we’re looking at,” he told analysts. “It’s also getting regulators comfortable with it. They’re usually cautious around crypto. There are only a handful of states open to it at the moment, but if it grows to a larger number of states, it’s something we’d take a longer look at.”

Cryptocurrencies like bitcoin, ethereum, and stablecoins are being integrated into sports betting platforms, according to an Evoloution Jobs post, offering faster transactions, lower fees and better privacy. Blockchain technology ensures transparent betting by allowing bettors to verify the fairness of outcomes.

According to a PYMNTS Intelligence report, “The Treasury Management Playbook: Spotlight on Cross-Border Payments,” a collaboration with Citi, stablecoins provide an alternative by enabling near-instant transfers, reducing costs, and increasing transparency with the use of blockchain technology. This innovation aligns with DraftKings’ commitment to enhancing the customer experience.

Expansion Through Strategic Acquisitions

Robins said a key area of focus for DraftKings in 2025 will be live betting, citing the company’s recent acquisitions of Simplebet, Sports IQ Analytics and Mustard Golf. Growing and integrating certain company verticals is also a priority, he added.

“For instance, Jackpocket, the No. 1 digital lottery courier app, has proven to be an efficient acquisition channel for the DraftKings ecosystem,” Robins said. “The app recently cracked the top 5 in the entertainment category of the App Store when the Mega Millions jackpot reached $1.2 billion. In 2025, we believe Jackpocket is positioned to benefit from larger prizes, more states, and an expanded product offering that includes scratcher games.”

Live Betting Driving the Next Phase of Growth

This growth in acquisition channels ties to DraftKings’ strategy of expanding user engagement, especially with live betting, Robins said. A key focus for DraftKings is its live, or in-play, betting options, which allow customers to place bets on events as they unfold. This trend has gained traction, particularly among younger, mobile-first users. DraftKings is also working to elevate this experience by collaborating with broadcasters to provide low-latency streams, improving the real-time betting experience.

In line with this, advancements in FinTech, such as instant payments and low-cost transaction processing, allow users to place small bets in real time, encouraging new betting behaviors among casual bettors. These microtransactions are facilitated by advanced payment gateways and blockchain technology, ensuring fast and secure transfers. Although the topic of instant payments wasn’t addressed during the call, PYMNTS data reveals how crucial it could be for the company.

According to the PYMNTS Intelligence report, “Generation Instant: Gaming and Winnings,” gaming companies are not fully tapping into the consumer demand for instant payouts, missing an opportunity to elevate customer satisfaction and loyalty. As riskier bets offer the potential for larger wins (or losses), demand for quicker payouts is likely to increase. As highlighted in a separate PYMNTS Intelligence study, “Disbursements Satisfaction Report 2023,” done in collaboration with Ingo Payments, instant payments represent a compelling innovation. Nearly 70% of paycheck-to-paycheck consumers select instant disbursement options when available.

Financial Growth and Future Outlook

DraftKings’ fourth-quarter revenue rose 13%, to $1.39 billion, while full-year revenue increased 30%, to $4.8 billion. The company acquired 3.5 million new customers and its total customer base rose 42%, reaching 10.1 million customers. DraftKings officials expect 2025 revenue in the range of $6.3 billion to $6.6 billion, which reflects a 35% year-over-year increase.

“My confidence begins with the year we had in 2024,” Robins said. “DraftKings is at the epicenter of a megatrend. We continued to efficiently acquire and engage customers, expand structural sportsbook hold percentage, and optimize promotional reinvestment in fiscal year 2024, while we simultaneously experienced customer-friendly sport outcomes. 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.”