US-based sports and fantasy betting operator DraftKings has reported 98% year-on-year revenue growth for Q3 2020. 

Taking into account DraftKings’ merger with SBTech in April, revenue increased 42% on a pro forma basis. DraftKings generated $133M USD during Q3, and saw average monthly unique players rocket 64% to 1 million, thanks in large part to the unprecedented occurrence of all of the big four US sports leagues (NFL, NBA, MLB, and NHL) taking place in the same quarter. 

DraftKings’ GAAP sales and marketing expenses during the quarter rose to $203M, and within a month of the quarter closing, the operator had expanded its mobile sports betting offering to ten states. 

Reflecting on the quarter DraftKings CEO, Jason Robins, said:

“The resumption of major sports such as the NBA, MLB and the NHL in the third quarter, as well as the start of the NFL season, generated tremendous customer engagement.

“Our product offerings and scalable platform provide a distinctive and personalised experience for customers across the ten states where we operate mobile sports betting today, and we look forward to entering additional jurisdictions at the earliest opportunity.”

The impressive results for the quarter have led DraftKings to raise its 2020 fiscal year revenue guidance from $500M – $540M to $540M – $560M on a pro forma basis, while full-year revenue guidance for 2021 has been slated as between $750M and $850M. 

Staying with DraftKings, last week its new VC fund, Drive by DraftKings, appointed Mereditch McPherron as CEO and managing partner, and made its first esports investment. 

AYO.NEWS says:

The fact that we saw action from all four of the big US leagues during the third quarter was always going to give the big US sports betting operators a boost, but the company’s merger with SBTech, which turned it into a fully integrated betting and gaming operation, has obviously positioned it well to take advantage of the massive growth in gaming.

‘AYO.NEWS says’ features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited or its affiliates or associates. 

All original content featured on this site is © Pentagon Digital Limited, 2020.