DraftKings Reports $1.14 Billion Q3 Revenue Amid Strong iGaming Growth
DraftKings reported total revenue of $1,144,019 thousand for the third quarter (Q3) of 2025, a 4% increase from the $1,095,490 thousand recorded in the same period in 2024. This growth was achieved despite significant volatility due to customer-favorable sports outcomes in September and October, which negatively impacted reported revenue by over $300 million.
The company’s focus on its digital offerings led to robust segmented results. iGaming Revenue surged 24.9% year-over-year to $451,300 thousand, the fastest growth rate since Q1 2024. Sportsbook Revenue, at $596,119 thousand, declined primarily due to the adverse sports results. DraftKings reported a Net Loss of $(256,788) thousand and an Adjusted EBITDA Loss of $(126,488) thousand. The Adjusted Loss Per Share was $(0.26).
Customer Engagement and Sportsbook Trends
DraftKings’ overall customer engagement remained healthy. The average number of Monthly Unique Payers (MUPs) grew to 3.6 million in Q3 2025, an increase of about 2% year-over-year. Excluding the acquired Jackpocket business, MUPs grew by 6%. Average Revenue per MUP (ARPMUP) increased by 3% to $106, driven by iGaming growth and structural improvements in the Sportsbook hold rate.
While the reported Sportsbook Revenue Margin was 5.2%, down from 6.3% in Q3 2024, the underlying activity was strong. Total Sportsbook Handle (wagers placed) grew 10.0% year-over-year to over $11.4 billion. CEO Jason Robins noted that the underlying business growth is accelerating, with Sportsbook Handle in October—the first month of Q4—already up 17% year-over-year.
Increased Capital Return and Market Expansion
The DraftKings Board of Directors authorized a major increase in its share repurchase program, raising the total authorization from $1.0 billion to $2.0 billion. CFO Alan Ellingson stated the company expects to be active in buying back shares in the coming quarter, underscoring confidence in the business trajectory and cash flow generation.
The company also adjusted its financial outlook for the full year 2025, projecting revenue between $5.9 billion and $6.1 billion and Adjusted EBITDA between $450 million and $550 million. These projections now incorporate the expected launch of DraftKings Predictions and the anticipated start of mobile sports betting in Missouri.
Strategic Partnerships and Product Innovation
DraftKings solidified its market reach with new exclusive marketing agreements with ESPN and NBCUniversal. Robins highlighted that ESPN’s “unmatched visibility” across the world of sports makes the new collaboration a “natural fit.” The partnership will commence on December 1, 2025, with full integrations expected in 2026.
In product development, DraftKings introduced several new features designed to enhance customer retention and experience:
- Ghost Leg: A feature that mitigates customer frustration from parlays lost by a single leg.
- Early Exit: An injury protection program for player proposition bets.
- Live Betting: Improved performance and uptime, making DraftKings a leader in available odds for live wagers.
Furthermore, the company is preparing to launch DraftKings Predictions in the coming months. This product is viewed as a “significant incremental opportunity” to engage customers and drive new revenue streams, especially in states without legalized sportsbooks.
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