Sports betting is massive enterprise within the U.S., however current figures from one of many nation’s largest sportsbooks exhibits that discovering a revenue for operators can nonetheless be a battle. The numbers additionally shed some mild on simply how a lot Americans love wagering on sports activities.
DraftKings reported $4.8 billion in total revenue for 2024, a 30.1% bounce from 2023. However, the corporate nonetheless misplaced cash, ending $507.3 million within the purple. On the optimistic facet, that was down from a lack of $802.3 million in 2023.
The firm noticed one other optimistic pattern with EBITDA (earnings earlier than curiosity, taxes, depreciation and amortization) at $181.3 million, up from a $151 million adjusted EBITDA loss in 2023.
The sports activities betting numbers come as CEO Jason Robins lately supplied some perception on Americans’ playing habits and the way he sees the business. He warned in opposition to seeing betting as something aside from a pastime.
“It’s an entertainment product,” Robins informed Fortune. “It’s not something that we recommend people looking at as an investment.”
Betting Boom
Many handicappers, nonetheless, aren’t following that recommendation. NerdWallet lately reported that 31% of sports activities bettors see betting as an investment., a 14% enhance from final yr’s survey. A complete of 65% reported making more money as the rationale for wagering on sports activities, the most typical response.
The different prime responses had been playing for enjoyment (61%) and betting to have enjoyable with family and friends (53%). According to the survey, the typical bettor spent $3,284 during the last yr and 40% reported having web beneficial properties throughout that point.
“Most people over the long term… they understand that they’re likely to lose money,” Robins mentioned. “So I think that it’s much more of, ‘I enjoy this and it entertains me and it’s worth me spending on in the same way that I would spend on… anything I find entertaining, going out to the movies or going out to dinner or whatever.’”
DraftKings stays bullish on the U.S. sports activities betting market. The firm forecasts a 35% income enhance to $6.6 billion from $6.3 billion. The operator additionally estimated adjusted EBITDA from $900 million to $1 billion.
The Boston-based firm initially launched in 2012 as a each day fantasy sports activities supplier, earlier than shifting its focus in 2018 to on-line and retail sportsbooks. DraftKings presently operates in New Jersey, New York, West Virginia, Indiana, Iowa, New Hampshire, Massachusetts, and Mississippi.
The firm can be eyeing enlargement, trying to enter the Missouri market, which legalized betting in a November election. Plans to launch in Puerto Rico are additionally in movement, together with potential new retail sportsbooks. The current Super Bowl confirmed simply how a lot American wish to guess on soccer, with a file $1.39 billion wagered.
