Key Moments:
- DraftKings reported a 4% year-over-year revenue increase in the third quarter, reaching $1.14 billion
- Monthly unique payers climbed to 3.6 million, up 2% overall and 6% excluding Jackpocket
- DraftKings signed an exclusive multi-year partnership to become ESPN’s “Official Sportsbook and Odds Provider” from December 2025
Revenue Continues Upward Trend Amid Investment in Growth
DraftKings posted a 4% increase in third-quarter revenue, generating $1.14 billion compared to $1.09 billion in the same period last year. The company stated that this performance was the result of ongoing healthy customer engagement, successful efforts to secure new customers efficiently, and an increase in structural Sportsbook hold percentage. However, these gains were partially tempered by outcomes in sporting events that favored customers.
Despite recording a net loss of $256.8 million for the period, the company raised its full-year 2025 revenue forecast to a range of $5.9 billion to $6.1 billion, signaling anticipated growth of 24-28% over the previous year. DraftKings also revised its Adjusted EBITDA guidance, now expecting between $450 million and $550 million.
Customer Metrics Reflect Engagement and Growth
Monthly unique payers, a core engagement statistic for DraftKings, increased by 2% to reach 3.6 million. When excluding Jackpocket, a recently acquired lottery courier app, this figure improved by 6%. Average revenue per user grew to $106, up 3% year-over-year, aided by expansion in iGaming and an improved sportsbook hold rate.
Sportsbook handle, another key metric, surged by 17% in October compared to the previous year, which indicates robust customer activity approaching the winter sports schedule.
| Metric | Q3 Value | Year-over-Year Change |
|---|---|---|
| Revenue | $1.14 billion | +4% |
| Net Loss | -$256.8 million | N/A |
| Monthly Unique Payers | 3.6 million | +2% (6% ex-Jackpocket) |
| Average Revenue Per User | $106 | +3% |
| Sportsbook Handle (October) | N/A | +17% |
| Cash on Hand (End 2024) | $1.23 billion | Up from $788 million |
Strategic Alliance with ESPN Set to Transform Digital Betting
Earlier this month, DraftKings announced a major strategic partnership with ESPN. Beginning in December 2025, the company will become ESPN’s “Official Sportsbook and Odds Provider” through an exclusive multi-year agreement. This arrangement will see DraftKings fully integrated into ESPN’s app and digital platforms.
Jason Robins, DraftKings’ CEO, described the partnership as a “natural fit,” highlighting ESPN’s unparalleled presence in sports: “ESPN’s unmatched visibility across the world of sports make this collaboration a natural fit… Together, we’re delivering a seamless, engaging, and responsible experience that elevates how fans connect with live sports.”
The deal aims to maximize DraftKings’ brand exposure within one of the most watched sports media platforms in the United States. As a result, DraftKings will have its odds, promotions, and contests featured directly in ESPN’s content, including live event coverage and digital feeds, turning ESPN’s digital presence into a combined destination for sports content and betting.
Competitive Landscape and CEO’s Industry Outlook
DraftKings has faced industry headwinds such as regulatory scrutiny and increasing tax burdens, as well as the rise of new prediction market platforms like Polymarket and Kalshi, which let users wager on real-world outcomes. Despite debate about the competitive threat posed by these platforms, Robins expressed strong confidence in traditional sportsbooks. He remarked at the Global Gaming Expo, “just doesn’t see a world” where customers would choose prediction markets over sportsbooks “in a state with legal sports betting.” He further emphasized that comparing the two types of products is “apples and oranges,” while acknowledging there may be some momentum in unregulated states.
Financial Position and Outlook
Though DraftKings continues to report quarterly net losses, the company has made significant strides in improving its cash reserves, which increased to $1.23 billion from $788 million at the end of 2024. The company’s raised guidance for both revenue and Adjusted EBITDA suggests ongoing optimism among its leadership. CEO Jason Robins asserted he felt “the most bullish [he has] ever felt about our future,” citing the business’s accelerating growth and rising customer engagement as key drivers.
- Author
Daniel Williams
