Sales were up 30% in the first quarter as gamblers wagered on things like professional esports tournaments and table tennis. DraftKings has also expanded its offerings in some states where internet is legal to include online blackjack, roulette and other casino games.
But DraftKings is banking on the notion that pent-up demand for the return of live sports will boost its revenue even further later this year.
But the National Basketball Association has yet to say when its season will resume, and there is no timetable yet for Major League Baseball to start its season.
Most sports will inevitably be back though, and DraftKings is hoping that its customers will want to watch games and events live on its app as well.
The company announced last week that it was partnering with data and content company Sportradar. That deal will allow customers with account balances above zero to watch live sporting events directly through the DraftKings Sportsbook app.
Customers can watch Korean baseball or soccer from Germany’s Bundesliga, for example, and DraftKings said it will work with Sportradar to add more live sports as more leagues resume play.
Still, the relative vacuum of sporting events right now is making it impossible for DraftKings to gauge what its financials will look like for the rest of the year. As such, the company has suspended its 2020 revenue outlook.
But DraftKings CEO Jason Robins said during the company’s latest earnings call that he’s willing to wait until the end of the year for many sports to return.
“I love the idea of the NBA starting on Christmas,” Robins said, adding that the company does not expect any significant hit to revenue next year if “the sporting events calendar resumes to a normal state by 2021.”
That’s a big “if,” though.