In the first quarter of 2023, DraftKings earned a sum of $770 million, raising its revenue by 84% compared to the last year. The DK’s motto that guides them is “revenue growth and cost efficiency”.
Rapid revenue growth
Recently, DraftKings, known as one of the biggest sport betting companies, posted a Q1 2023 business update and presentation on their official website, where they declared their strong revenue growth.
The company said they continue to attract new clients, pay more attention to product innovations, reduce their advertisement intensity, and keep players at a high rate, which is the primary reason for their profitability increase. Moreover, DK reported an 84% Q1 2023 revenue growth compared to Q1 2022 and expected the full-year 2023 revenue growth to be 42% higher than the previous year.
DK’s CEO and Co-Founder, Jason Robins, said, “DraftKings’ first quarter performance – 84% year-over-year revenue growth and share gains underpinned by a relentless focus on operational efficiency – demonstrates that this is a company positioned for sustained success”.
DK’s significant revenues have come from both iGaming and mobile sports betting. Due to the Q1 2023 results, in the first quarter of the year, DraftKings’ sportsbook share made 32%, and their iGaming share took #1 in the USA in this period of time.
Cutting losses amid expansion
But still, even though DraftKings made a massive step toward success, their “revenue growth and cost efficiency” strategy could not prevent the heavy losses of $397 million net loss, which means they keep expanding the clients base and overall reach, being one of the biggest sport betting companies in the USA.
Launching new things
To be more precise about DraftKings’ expansion, this sports betting giant launched its mobile sports betting products in Ohio on January 1 and in Massachusetts on March 10 of 2023.
But apart from earning on iGaming and mobile sports betting, DraftKings launched their very first horse racing product called DK Horse, which is actually DK’s pari-mutuel booking product altogether with the Churchill Downs, based on their multi-year agreement.
“Our goal is to provide our customers with best-in-class sports and gaming products, and we expect DK Horse to provide a fun and new way to engage with renowned races like the upcoming Run for the Roses,” said Jason Robins.
DK Horse application not only allows its customers to handicap and bet races but to stream them via their app accounts as well.
Nowadays, the DK House app is available in 12 states, but the company is thoroughly trying to get a license for its sportsbook in Kentucky, which is known as the Horse Capital of the World. Getting the approval for such a sports betting license will undoubtedly strengthen DK’s position in horse racing.
Last but not least, DraftKings is putting more emphasis on its entertainment products to attract more customers. The company decided to launch a free streaming service for broadcasting sport-related shows and podcasts named DraftKings Network. The content will be financially supported by sales of advertising.