Virginia Sports Betting Contributes To DraftKings’ 1Q Revenue Totals

Written By T.J. McBride on May 10, 2024
Jason Robbins, DraftKings CEO, who recently touted DraftKings first quarter revenue growth

DraftKings saw its revenue jump a whopping 53% year over year in the first quarter of 2024.

During that timeframe, sports betting at the sportsbook represented just over 27% of Virginia’s market, second only to FanDuel’s $40% of market share in the commonwealth.

The continued growth of Virginia sports betting certainly contributed to DraftKings’ revenue growth over the last year.

DraftKings reports revenue of $1.18 billion in first quarter

DraftKings took home $1.18 billion in revenue in the first quarter of 2024. It was an increase of $405 million compared to 2023, when the company generated $770 million in the first quarter.

On its Q1 earnings call, DraftKings’ executives pointed to five reasons for the boost:

  1. Continued healthy customer engagement
  2. Efficient acquisition of new customers
  3. Expansion of DraftKings Sportsbook into new markets
  4. Higher structural hold percentage
  5. Improved promotional reinvestment for sportsbook and iGaming

DraftKings’ co-founder and CEO Jason Robins noted some of the company’s Q1 successes in the call.

“DraftKings’ performance in the first quarter of 2024 was outstanding, reflecting healthy revenue growth and a scaled fixed-cost structure that positions us to drive rapidly improving adjusted EBITDA. We successfully launched our online sportsbook in Vermont and North Carolina with highly efficient customer acquisition.”

DraftKings’ Market Share Almost As Much As 14 VA Sportsbooks Combined

DraftKings does not have a stake in the Virginia casino market. Additionally, Virginia online casinos are still illegal. Its online sportsbook, however, has enjoyed a great deal of success in the commonwealth.

In fact, DraftKings’ market share in Virginia is nearly as much as the 14 online sportsbooks under it combined.

While the Virginia Lottery does not report individual operator numbers, it does report market share percentages. That means betting handle at DraftKings was probably around 27% of March’s total of $635.5 million, or around $172 million.

DraftKings Raises 6-month Projections

Because of its success in the first quarter of 2024, DraftKings does not see a reason to change its plan going forward, according to Robins.

“Looking ahead, we remain committed to maximizing shareholder value through continued innovation, operational excellence and disciplined capital allocation.”

There was one repercussion to DraftKings 53% jump in revenue, however.

DraftKings CFO Alan Ellingson said that projections for the rest of the year have been adjusted because of the rise.

“We are raising the midpoint of our fiscal year 2024 revenue guidance to $4.9 billion from $4.775 billion and the midpoint of our adjusted EBITDA guidance to $500 million from $460 million as a result of our excellent first quarter results and improved outlook on customer acquisition and engagement for the rest of 2024.”

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T.J. McBride

T.J. McBride is a writer and reporter based in Denver. He is a Nuggets beat writer and also covers the regulated gambling industry across the U.S. His byline can be seen at ESPN, FiveThirtyEight, Bleacher Report and more.

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