Faced with mounting losses that spurred an investor selloff Friday (Feb. 18), daily fantasy sports (DFS) wagering platform DraftKings is betting hard on iGaming as it moves more aggressively into new game types and North American territories this year.
Releasing fourth-quarter and full-year 2021 financials Friday (Feb. 18), the Boston-based sports entertainment and gaming brand is focusing on acquisition, retention and increasing average spend as more states legalize online betting.
Saying that DraftKings mobile iGaming is now live in locales “representing approximately 11% of the U.S. population,” the company reported monthly unique payers (MUPs) were up 32% over Q4 2020, with average revenue per MUP (ARPMUP) rising 20% to $77 in the same period.
Pushing some details off to DraftKings’ upcoming March 3 investor day, CEO Jason Robins told analysts that gross revenue from iGaming rose 153% year over year and 61% on a same-state basis. DraftKings averaged 2 million monthly active payers through Q4. That’s set on a growth course as more state legislatures have approved allowing mobile sports wagering or are considering it.
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Robins said “we have continued to see momentum. Following our launches in New York and Louisiana in January, DraftKings is live with online sports betting in 17 states that collectively represent approximately 36% of the U.S. population.”
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On the connected economy front, Robins told analysts that “our technology provides a seamless customer experience through a single, integrated in-wallet across product offerings and jurisdictions. We are already seeing this play out in the Northeast, where customers who travel between New York, Connecticut, New Hampshire, New Jersey and Pennsylvania are able to play on the DraftKings app without having to open a new account.”
In Q4, the company also introduced DraftKings Social, a platform that lets fans interact on the company’s Sportsbook and DFS apps.
“We’re launching several additional social integration points across our Sportsbook and DFS products in the first part of the year,” Robins said. “We’re also building additional features, such as betting groups, which allow friends to bet in private groups where everyone gets to see each other’s bets and chat, as well as chat features for both DFS and our live casino games.”
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