Big Increase in Customer Base Industry

DraftKings Saw Big Increase in Customer Base Last Year

By Amelia Walker Senior Content Writer Updated: 02 March 2024

Amelia Walker Senior Content Writer

Amelia Walker is a Senior Content Writer at Betting.US. She has a law degree and deep knowledge of the gambling laws in the United States. Her mission is to keep players informed about responsible gambling, while her passion for sports helps her create useful guides. Amelia has over a decade of experience in betting, which has positioned her as a trusted voice among our readers.

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In a recent earnings call, one of the leading sportsbook operators in the country, DraftKings, revealed a huge increase in its customer base in 2023. The operator also spoke about its improved financial data for the fourth quarter and the whole of 2023. Despite ongoing operational losses, the company highlighted positive trends attributed to increased revenues and higher user engagement.

Data from the operator’s latest earnings report disclosed a revenue of $1.2 billion for the final quarter of 2023, marking a huge 44 percent increase compared to the same period in 2022. The total revenue for the year amounted to $3.6 billion, reflecting a 38.9 percent year-on-year increase.

These impressive figures were revealed by the company’s CEO, who also spoke about future plans for the operator and how it plans to continue growing its customer base.

Operational Losses Lower Than Previous Year

Despite these revenue gains, DraftKings reported operational losses of $43.8 million for the fourth quarter and $789.2 million for the entire year. However, data shows that these losses are considerably lower than the losses experienced by the operator in 2022.

The company attributed these improvements mainly to the expansion of its customer base and increased engagement from existing users throughout 2023. DraftKings CEO Jason Robins emphasized these points during the earnings call, talking about key data such as a 37 percent increase in monthly unique player count, which reached 3.5 million by the end of the fourth quarter. He said:

DraftKings ended 2023 with excellent performance across customer acquisition, retention, and engagement, as well as structural sportsbook hold percentage despite the worst stretch of sport outcomes we have seen as a public company in the fourth quarter.

DraftKings also reported a 6 percent growth in average revenue per user during the final quarter of 2023, amounting to $116. Robins credited the success to a strong performance in the sportsbook sector and effective customer acquisition strategies for its real-money online casino products.

DraftKings Aims to Continue Expanding Customer Numbers

Looking ahead, DraftKings aims to continue growing its expanding customer base and product offerings to further improve its financial performance. The company’s recent acquisitions, which include Jackpocket, a lottery ticket courier service and online casino operator, are expected to contribute to its growth strategy.

DraftKings also plans to launch its online sportsbook in North Carolina in March. This is pending regulatory approval, and it reflects the operator’s commitment to expanding its market reach. However, CEO Jason Robins remained cautious about the possibility of further acquisitions in the near future, emphasizing a focus on enhancing existing products rather than pursuing additional ventures.

With the level of competition among operators in sports betting states across the nation, DraftKings is keen to maintain its reputation as one of the leading operators. Along with FanDuel, the company dominates the sports betting markets in the United States.

With its strategy to grow its customer base and sports betting offerings, the company will find it easier to maintain its leading spot even with an increase in competition.