DraftKings is constant its climb within the sports activities betting business with a large Q2 income increase, however the accessible pool of latest bettors could also be slowly drying out.
On August 6, 2025, DraftKings launched its monetary report for Q2 of 2025. Within the earnings name, the corporate boasted a 37% enhance in income in comparison with the identical interval final 12 months, which it attributed to buyer engagement and “sportsbook-friendly outcomes.” Nonetheless, the fly within the ointment is the corporate’s month-to-month customers, which considerably dropped in comparison with Q1. DraftKings acknowledges the deficiency and has a plan to resolve it, however the inventory market has already reacted to the disappointing information.
In its Q1 2025 report, DraftKings reported a mean month-to-month distinctive payer (MUP) depend of 4.3 million, up 28% from Q1 of 2024. Nonetheless, the most recent replace lists the MUP depend of Q2 at 3.3 million. Dropping 1 million customers in simply three months doesn’t bode properly for the corporate, even when it maintains its year-over-year progress.
The inventory market’s response to the decision can be underwhelming. DraftKings’ share worth bumped up from $45.36 to $48 on the finish of the day, however has since dropped. It at the moment sits at simply over $44 a share, approaching its month-to-month low.
To cope with the MUP drop, DraftKings is at the moment within the means of launching its sportsbook in Missouri. Nonetheless, the state’s legalization course of is extra sophisticated than others. The state has strict utility home windows and a restricted variety of licenses designated for standalone operators. DraftKings claims to have submitted its cell betting license utility earlier than the July 15 deadline, however full sportsbook availability is probably going nonetheless months away.
Esports unlikely to spice up income at DraftKings
Whereas DraftKings does provide esports betting, the vertical doesn’t seem to play a serious function on the firm.
DraftKings affords each day fantasy for Rocket League, Name of Obligation, League of Legends, and Counter-Strike 2. It additionally affords match betting for main occasions. Nonetheless, it doesn’t prominently promote its esports options and lumps all video games collectively within the sportsbook. DraftKings’ esports technique seems to be primarily based round stopping current customers from betting on different websites reasonably than attracting devoted esports followers.
Picture Credit score: Riot Video games
Maybe the most important sign of this technique is the way in which it writes the phrase. All esports offferings on the location are written as “e-sports” reasonably than the extra modern hyphen-less spelling.
Missouri’s betting laws doesn’t point out esports in any respect, neither is the state thought-about an enormous marketplace for aggressive gaming. Whereas increasing into the state might assist its MUP downside, esports is unlikely to resolve DraftKings’ person depend downside.
