DraftKings Reports First Quarter 2020 Results
Revenue grew 30%, despite COVID-19
Continued to drive customer engagement without major sports
BOSTON, May 15, 2020 (GLOBE NEWSWIRE) -- DraftKings Inc. (Nasdaq: DKNG) today reported financial results for DraftKings’ and SBTech’s first quarter ended March 31, 2020, achieved prior to the completion of the companies’ business combination with Diamond Eagle Acquisition Corp. on April 23, 2020. Detailed financial data and other information are available in DraftKings’ 8-K/A, filed today with the Securities and Exchange Commission.
Through its recent business combination, DraftKings has created the only vertically integrated sports betting company based in the United States.
“We are uniquely positioned at the intersection of digital sports entertainment and gaming in a rapidly growing industry,” said Jason Robins, DraftKings co-founder, CEO and Chairman of the Board. “DraftKings recorded standalone Q1 year-over-year revenue growth of 30% despite the effects of COVID-19. Additionally, the engagement we continue to see from our customers validates the connection they have with our content, their passion for our products and most importantly their loyalty to our brand.”
New Products to Offset COVID-19 Impact
DraftKings continues to make progress on its key priorities despite the effects of the COVID-19 pandemic. These include entering new states, investing in product and technology to create more unique offerings and live betting for American-based sports, and acquiring and retaining our customers.
The Company has responded to the lack of major sports by creating new product offerings that are keeping customers engaged, such as fantasy sports and betting on eNASCAR, Counter Strike, and Rocket League. DraftKings has also launched a series of pop culture free-to-play pools contests that cover topics from democratic debates to TV shows like Survivor, The Last Dance and Top Chef. DraftKings also recently partnered with MLB on their new MLB Dream Bracket game.
The Company does not anticipate an impact to FY2021 or long-term plans due to COVID-19.
U.S. Sports Betting & iGaming Legislative Landscape
At this time, approximately 14 U.S. states are actively considering sports betting legislation and DraftKings expects this momentum to continue as governments begin to focus on reopening the economy. States that have passed legislation to permit online sports betting over the past year include Illinois, Michigan, Tennessee and Virginia.