DraftKings Posts First Earnings Report Since Colorado Sports Betting Launch

DraftKings reported solid revenue growth in its Q1 2020 earnings report Friday, seeing revenue shoot up by 30% in its first quarterly report since CO sports betting went live in the state on May 1.

The Boston-headquartered company noted its expansion of new offerings for sports bettors in light of major sports leagues on hold, including fantasy sports, eNASCAR, Counter Strike, and Rocket League wagering. It also has stepped up its free-to-play pools competitions that cover current topics like Democratic presidential debates, and TV shows like Survivor, The Last Dance, and Top Chef. It touted its recent partnership with MLB on DraftKings’ new Dream Bracket game.

The earnings report came at a time when most major sports leagues in the U.S. have postponed or canceled their seasons due to the pandemic. Since the quarter ended just two weeks after the shutdowns began, the full extent of coronavirus’ impact on the bookmaker’s bottom line is probably not fully reflected in Q1’s report. The company did note it expects any impact to its earnings as a result of the pandemic to have subsided by Q1 of 2021.

“We are uniquely positioned at the intersection of digital sports entertainment and gaming in a rapidly growing industry,” said Jason Robins, DraftKings co-founder, CEO and Chairman of the Board. “DraftKings recorded standalone Q1 year-over-year revenue growth of 30% despite the effects of COVID-19. Additionally, the engagement we continue to see from our customers validates the connection they have with our content, their passion for our products and most importantly their loyalty to our brand.”

Q1 2020 saw DraftKings Sportsbook launch retail and online sports betting in Iowa and Colorado, and it recently went live with iGaming in Pennsylvania.

Despite the shutdown, however, DraftKings has been seeing plenty of action from its Colorado sportsbooks, including Belarusian soccer, ping-pong, and more. DraftKings is partnered with Twin River Holdings, owner of Golden Gates, Golden Gulch, and Mardi Gras Casino in Black Hawk. Although retail casinos in Colorado remain closed for now, DraftKings is set to operate its retail sportsbooks through its local partners once the doors reopen.

About the Author

Chris Nesi

Chris Nesi is Managing Editor of Colorado Sharp. He’s been an editor and writer for more than a decade, with experience spanning newspapers, magazines, digital news, and commercial writing. His work can be found in publications including TechCrunch, Mental Floss and Huffington Post. Chris lives just outside of Denver and enjoys regular trips to Black Hawk. He bets the hard ways and always splits 8s.