The first-quarter revenue report is in for DraftKings, and it was a much better quarter than what was initially expected. DraftKings has added sports betting and online casinos to its iGaming platform, and those additions have helped create a giant in the iGaming industry.
The revenue total for DraftKings in the first quarter was $312 million, and it was projected to fall between $230-$240 million. This represented a growth of more than 253 percent from the $89 million that was reported in the first quarter of 2020.
DraftKings CEO Jason Robins presented the first-quarter earnings report, and he also gave some insight as to why the company did much better than expected. A big reason for the better than expected numbers came from remote registration being extended in Illinois, one of the biggest markets in the United States.
DraftKings also had a much higher hold percentage than expected, but Robins failed to give details as to why this was the case. Both factors cannot be counted on for the rest of the year, especially as Illinois has reinstated the in-person registration rules.
Despite the promising first quarter in terms of revenue, DraftKings still posted an overall loss of $346.3 million for the first quarter. This has been a troubling trend for the company, but things are expected to start leveling out at some point later in the year.
DraftKings Keeping Fans in Mind
Sports betting and DFS will always be the top priority for DraftKings, but the company is set to launch a new function on its site and mobile app. There will be a new social engagement portion of the site that will allow customers to interact with each other within their specific markets.
Robins believes that this new feature will help set DraftKings apart from other operators in the industry and should lead to an influx of new sports betting accounts. This new feature comes after DraftKings has seen a number of customers request this type of thing in recent months.
Other Markets Expected
Along with making upgrades to the online site and mobile app, DraftKings will also continue to look to expand into other markets throughout the US. DraftKings is now live in both Michigan and Virginia, and both of those markets have been extremely productive since launch.
Maryland is the next state that could potentially see sports betting, and DraftKings would be a major factor in that state. As new states continue to explore online casino gaming as well, DraftKings will be positioned to add that to its existing platform.
New Deals Should Push Revenue
New partnerships and acquisitions continue to guide the sports betting industry, and DraftKings has been a major player in this trend. The company just recently purchased the Vegas Sports and Information Network (VSIN).
Brent Musberger is the leading man of that network, and it already has a strong presence in the industry. Media companies and sport betting operators continue to form a strong relationship, and this will allow DraftKings to get content out to a wide range of bettors and sports fans.