DraftKings has reported a 17% year-on-year (YoY) leap in Q1 revenue to $1.6bn (£1.2bn) on the back of a “strong” sports betting performance and more efficient customer acquisition.
Adjusted EBITDA increased from $102.6m to $167.9m. DraftKings said without spend on prediction markets and its Arkansas launch, the figure would have gone over $200m.
Sports betting revenue at the Boston-based giant was up 24.1% from $882m to $1.1bn, while net revenue margin ticked up from 6.4% to 7.8%.
In comparison, Flutter reported its US sports betting revenue rose just 1% YoY in Q1.
DraftKings bosses said revenue growth exceeded 20% in almost all major sports, while parlay handle mix increased by nearly 300 basis points.
The increase came despite handle only ticking up 1.5% to $14.1m during the reporting period.
In igaming, revenue rose 8.9% YoY to $461.3m. Other revenue slipped 13% to $89.9m.
Monthly unique payers (MUPs) were down 4% to 4.2 million, which DraftKings said was predominantly as a result of lottery courier brand Jackpocket exiting Texas.
Texas outlawed lottery courier operators in the state last year in a significant blow for the sector. DraftKings snapped up Jackpocket in 2024 for $750m.
When excluding Texas, MUPs increased 2% YoY, with management pointing to “strong customer retention and acquisition”. Average revenue per MUP jumped 21% to $131.
On the prediction markets front, DraftKings said the vertical remained a “strategic priority” albeit still being in “its first innings” as a sector.
Management noted that following the rollout of its ‘Super App’, prediction markets customer acquisitions costs were down 80% in April.
The Super App will house DraftKings’ sports betting, igaming, lottery, horseracing and prediction markets products under a single banner.
The DraftKings Predictions product has doubled its number of available markets, while combos are due to launch imminently.
Market-making capabilities have also been deployed, which are already “generating a positive return” for the New York-listed firm.
“In the coming weeks, we expect to launch our proprietary exchange and to begin offering combos. Together, these moves will accelerate innovation, improve the customer experience and strengthen our economics,” DraftKings added.
The operator’s stock was up 5.4% to $25.22 following the results being published.
DraftKings said it would retain its full-year 2026 guidance post-Q1, with revenue expected to land between $6.5bn and $6.9bn.
Adjusted EBITDA has been given a range of $700m to $900m.
Also looking ahead, the operator said it would begin to bucket sports betting revenue and prediction markets revenue under a single metric in the P&L.
Jason Robins, DraftKings CEO and co-founder, remarked: “We are off to a fantastic start to the year as our first quarter results exceeded our expectations.
“Our core business is strong, and profitability is inflecting. That gives us the firepower to press our advantage in predictions. With our Super App, market making capabilities, proprietary exchange and combos coming together, we intend to establish a leadership position in sports predictions before year-end.”
The post DraftKings Q1 revenue jumps 17% on strong sports betting showing first appeared on EGR Intel.
Operator lays out plans to take a “leadership position” in sports prediction markets, as CEO Jason Robins outlines market-making opportunities and planned product improvements
The post DraftKings Q1 revenue jumps 17% on strong sports betting showing first appeared on EGR Intel.