DraftKings released its third-quarter financial results, reporting $1.14bn in revenue, a 4% increase year-over-year for the period ending September 30.
The sportsbook’s handle rose 17%, reflecting heightened betting activity. The announcement follows just one day after ESPN revealed a new partnership with DraftKings, ending its prior arrangement with Penn Entertainment and ESPN Bet.
The company attributed the revenue growth to sustained customer engagement, efficient new-user acquisition, and improved sportsbook hold percentages, partially offset by more favorable outcomes for bettors.
Monthly Unique Payers (MUPs) reached 3.6 million, a 2% increase overall; excluding Jackpocket, MUPs rose 6%compared to Q3 2024. Average Revenue Per MUP (ARPMUP) grew 3% to $106.
Looking ahead, DraftKings projects 2025 revenue of $5.9bn to $6.1bn, representing 24%–28% growth, and an adjusted EBITDA of $450m–$550m. These expectations factor in the planned launch of mobile sports betting in Missouri later this year. The guidance also includes the upcoming rollout of DraftKings Predictions, pending licensing approval.
CEO and co-founder Jason Robins commented:
This is the most bullish I have ever felt about our future. Growth in the business is accelerating, and we are excited to launch DraftKings Predictions, which we see as a major opportunity.
CFO Alan Ellingson added:
With accelerating handle and continued growth in parlay mix, we are highly encouraged by our Free Cash Flow outlook. To maximize shareholder value, our board has approved an increase to our share repurchase program, from $1.0bn to $2.0bn.
