The house may always win overall in sports betting, but bettors at DraftKings Sportsbook can take a little solace in knowing the company isn’t taking home as much as it originally expected this year because of them.
On an earnings call with investors this week, DraftKings CEO Jason Robins provided a revised update on the company’s 2024 revenue outlook and it’s noticeably down a few million.
According to Front Office Sports‘ A.J. Perez, Truist Securities analyst Barry Jonas called it “the worst stretch” DraftKings had in the percentage of dollars retained from NFL bets. NFL favorites are 74-61-4 against the spread this season, while home favorites on the moneyline are 61-28 and 97-42 overall.
Per Perez:
DraftKings reported revenues of $1.095 billion that were about in line with analysts’ expectations, but posted a higher-than-forecast net loss for the quarter. Shares dipped about 6% in premarket trading, but rebounded once markets opened Friday.
The company lowered its full-year 2024 revenue guidance to a range between $4.85 billion and $4.95 billion from $5.05 billion to $5.25 billion.
“Just [Thursday night], if the Bengals made that two-point conversion or if they didn’t score that last touchdown, there would have been very different [betting] outcomes,” Robins said on the call. “So, things can swing either way. Over a longer period of time, it normalizes.”
That last sentence is absolutely worth taking to heart for any bettors who think they can join in and take a bite out of DraftKings’ revenue. Past betting performance is not always an indicator of future outcomes. That’s how the house stays ahead. Take it from the CEO.
“The fundamentals are super-strong,” Robins said. “I think 2025’s going to be an even bigger year for us.”
