Sports Betting Giant DraftKings Reports $4.8 Billion In Revenue For 2024CEO Says Sports Gambing Is 'An Entertainment Product, Not An Investment’ |
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Sports betting is big business in the U.S., but recent figures from one of the country’s largest sportsbooks shows that finding a profit for operators can still be a struggle. The numbers also shed some light on just how much Americans love wagering on sports.
DraftKings reported $4.8 billion in total revenue for 2024, a 30.1% jump from 2023. However, the company still lost money, finishing $507.3 million in the red. On the positive side, that was down from a loss of $802.3 million in 2023.
The company saw another positive trend with EBITDA (earnings before interest, taxes, depreciation and amortization) at $181.3 million, up from a $151 million adjusted EBITDA loss in 2023.
The sports betting numbers come as CEO Jason Robins recently offered some insight on Americans’ gambling habits and how he sees the industry. He warned against seeing betting as anything other than a pastime.
“It’s an entertainment product,” Robins told Fortune. “It’s not something that we recommend people looking at as an investment.”
Betting Boom
Many handicappers, however, aren’t following that advice. NerdWallet recently reported that 31% of sports bettors see betting as an investment., a 14% increase from last year’s survey. A total of 65% reported making extra money as the reason for wagering on sports, the most common response.
The other top responses were gambling for enjoyment (61%) and betting to have fun with friends and family (53%). According to the survey, the average bettor spent $3,284 over the last year and 40% reported having net gains during that time.
“Most people over the long term… they understand that they’re likely to lose money,” Robins said. “So I think that it’s much more of, ‘I enjoy this and it entertains me and it’s worth me spending on in the same way that I would spend on… anything I find entertaining, going out to the movies or going out to dinner or whatever.’”
DraftKings remains bullish on the U.S. sports betting market. The company forecasts a 35% revenue increase to $6.6 billion from $6.3 billion. The operator also estimated adjusted EBITDA from $900 million to $1 billion.
The Boston-based company originally launched in 2012 as a daily fantasy sports provider, before shifting its focus in 2018 to online and retail sportsbooks. DraftKings currently operates in New Jersey, New York, West Virginia, Indiana, Iowa, New Hampshire, Massachusetts, and Mississippi.
The company is also eyeing expansion, looking to enter the Missouri market, which legalized betting in a November election. Plans to launch in Puerto Rico are also in motion, along with potential new retail sportsbooks. The recent Super Bowl showed just how much American like to bet on football, with a record $1.39 billion wagered.
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