Draftkings Inc Stock Price, News & Analysis

DraftKings (NASDAQ: DKNG) has announced the implementation of a $0.50 transaction fee on all mobile and online sports bets placed in Illinois through DraftKings Sportsbook, effective September 1, 2025. This decision comes in response to recent tax increases by the Illinois state legislature that have more than tripled the tax rate on mobile and online sports wagers over the past two years. CEO Jason Robins expressed disappointment with the policy changes and raised concerns about their impact on the legal, regulated industry while noting that illegal operators continue to thrive without paying taxes or providing consumer protections. DraftKings has committed to removing the fee if the tax legislation is repealed.

DraftKings (DKNG) reported Q1 2025 revenue of $1,409 million, up 20% from $1,175 million in Q1 2024. Monthly Unique Payers increased 28% to 4.3 million, while Average Revenue per MUP decreased 5% to $108. The company revised its FY2025 guidance downward, now projecting revenue of $6.2-6.4 billion (32% YoY growth) and Adjusted EBITDA of $800-900 million. The revenue increase was driven by customer engagement, efficient customer acquisition, higher Sportsbook hold percentage, and the Jackpocket acquisition, though offset by customer-friendly sport outcomes. DraftKings repurchased 3.7 million shares in Q1 and is currently operational with mobile sports betting in 25 states plus D.C. (49% of U.S. population) and iGaming in 5 states (11% of U.S. population).

DraftKings (DKNG) has scheduled the release of its first quarter 2025 financial results after market trading hours on Thursday, May 8, 2025. The company will follow this with a conference call and audio webcast on Friday, May 9, 2025, at 8:30 a.m. ET.

Management will discuss the quarterly results and provide business performance commentary during the call. Interested parties can access the audio webcast and Q&A session through DraftKings' investor relations website at investors.draftkings.com. The webcast recording will remain available for replay until June 30, 2025, at 11:59 p.m. ET.

DraftKings (DKNG) has announced several responsible gaming initiatives during Problem Gambling Awareness Month. The company is renewing its State Council Funding Program, which will distribute over $500,000 to 34 U.S. state problem gambling councils in 2025. Since its 2022 launch, the program has provided over $2 million in support.

The company is celebrating the one-year anniversary of its My Stat Sheet tool, which has attracted nearly half of all DraftKings players and recorded 13 million unique visits. This feature provides players with personalized gaming behavior insights, including time spent, deposits, withdrawals, and net wins/losses.

Additionally, DraftKings is launching a national Responsible Gaming advertising campaign with a $10 million investment. The campaign, developed with NFL and NBA branding support, will air during NCAA basketball tournaments to promote responsible gaming practices.

DraftKings (DKNG) has successfully closed a $600 million senior secured term loan B credit facility, which was upsized from the initially announced $500 million due to strong market demand. The Term Loan B will mature in March 2032 and carries an interest rate of SOFR plus 1.75% per annum.

The facility was offered at 99.50% of par value and requires annual repayment of 1.00% of its aggregate principal amount. The company plans to use the net proceeds for general corporate purposes.

DraftKings (DKNG) announced that CEO and Co-founder Jason Robins will participate in the Morgan Stanley Technology, Media & Telecom Conference on March 4, 2025, at 3:20PM ET. The fireside chat will be accessible through both the conference website and DraftKings' Investor Relations website.

DraftKings (DKNG) has announced the launch of syndication for a proposed $500 million senior secured term loan B credit facility. The company plans to use the net proceeds from this Term Loan B for general corporate purposes. The completion of this credit facility is subject to market and other conditions.

DraftKings (DKNG) reported Q4 2024 revenue of $1,393 million, up 13% from $1,231 million in Q4 2023. The company raised its 2025 revenue guidance midpoint to $6.45 billion and reaffirmed Adjusted EBITDA guidance of $900 million to $1.0 billion.

Monthly Unique Payers increased 36% to 4.8 million in Q4 2024, while Average Revenue per MUP decreased 16% to $97. The revenue growth was driven by customer engagement, new customer acquisition, Sportsbook expansion, higher structural hold percentage, and the Jackpocket acquisition, partially offset by customer-friendly NFL outcomes.

DraftKings achieved its first year of positive Adjusted EBITDA in 2024 and began executing share repurchases. The company is live with mobile sports betting in 25 states plus Washington D.C., representing 49% of the U.S. population, and iGaming in 5 states covering 11% of the population.

DraftKings (DKNG) has scheduled the release of its fourth quarter and full year 2024 financial results after market close on Thursday, February 13, 2025. The company will hold a conference call and audio webcast the following morning on Friday, February 14, 2025, at 8:30 a.m. ET, where management will discuss results and provide business performance commentary.

The audio webcast and live Q&A session will be accessible through DraftKings' investor relations website, and the recording will remain available until March 31, 2025, at 11:59 p.m. ET.