DraftKings is constant its climb within the sports activities betting business with a large Q2 income enhance, 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% improve in income in comparison with the identical interval final yr, which it attributed to buyer engagement and “sportsbook-friendly outcomes.” Nevertheless, 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 median month-to-month distinctive payer (MUP) rely of 4.3 million, up 28% from Q1 of 2024. Nevertheless, the newest replace lists the MUP rely of Q2 at 3.3 million. Dropping 1 million customers in simply three months doesn’t bode effectively for the corporate, even when it maintains its year-over-year development.
The inventory market’s response to the decision can be underwhelming. DraftKings’ share value 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. Nevertheless, the state’s legalization course of is extra sophisticated than others. The state has strict software home windows and a restricted variety of licenses designated for standalone operators. DraftKings claims to have submitted its cellular betting license software 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 supply esports betting, the vertical doesn’t seem to play a serious function on the firm.
DraftKings provides every day fantasy for Rocket League, Name of Obligation, League of Legends, and Counter-Strike 2. It additionally provides match betting for main occasions. Nevertheless, 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 quite than attracting devoted esports followers.
Picture Credit score: Riot Video games
Maybe the most important sign of this technique is the best way it writes the phrase. All esports offferings on the positioning are written as “e-sports” quite 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 a giant marketplace for aggressive gaming. Whereas increasing into the state might assist its MUP drawback, esports is unlikely to resolve DraftKings’ person rely drawback.
