If you’re a fan of combat sports such as the Ultimate Fighting Championship (UFC) or of the NFL, the NHL, or the NBA, you’ve most likely heard of DraftKings or at least seen the brand in some shape or form. DraftKings is primarily an online fantasy sports and sportsbook operator but has also branched into other iGaming services. The company started life with just the fantasy sports platform, which it launched in 2012, but the operator has quickly grown since then and become the household name it is today.
But how has this company, founded by a trio of fantasy sports enthusiasts, performed in the last few years? Below is a look at the company’s performance, the DraftKings casino offering, other areas that are performing well, and what the future could hold for the iGaming operator.
The performance of DraftKings
After several years of losses posted by the company, investors may gain some confidence from DraftKings’ BB+ rating by Fitch. In its March 2025 rating report, the credit rating agency states the company has a strong position in the iGaming and sports betting sectors, has robust cash generation and significant revenue growth, and is projected to reach $8 billion by 2027. The agency also reports that the company’s earnings before interest, tax, depreciation, and amortization (EBITDA) margins should improve from 3.8% in 2024 to 22.5% in 2027.
That makes sense when you consider that DraftKings ended its fourth quarter and 2024 year on a high. The company reported, for the three months ending on December 31, 2024, revenue of $1,393 million. That’s a year-on-year increase of $162 million or 13% compared to the $1,231 million for the same period in 2023.
DraftKings attributes this success to a variety of reasons:
- Effective customer engagement
- Efficient acquisition of customers
- Expansion of the company’s new product into new jurisdictions
- Higher structural sportsbook hold percentage
- The impact of acquiring Jackpot Inc.
The DraftKings casino
Fantasy sports may be the founders’ main passion, but if you’re looking for casino games, the company’s offering won’t disappoint you. The Draft Kings casino spoils players with variety, offering slots, roulette, craps, blackjack, poker and live dealer games. If you want to play the latest games, head to the “New” section, where DraftKings keeps things fresh for the customers with new games for players.
Like many other casinos, DraftKings doesn’t force players to play for cash from the outset. If you want to try out a game, you can play the demo version and build your skills and knowledge of the game first. You can also make the most of a promo code from DraftKings to explore the site and enjoy some casino gaming for free.
Sports betting
The casino isn’t the only thriving part of the company; the sports betting division of DraftKings has also been prospering. During the NCAA’s elimination tournament, the March Madness, DraftKings is one of the top companies to have prospered during green time, which is when operators are accepting bets online and offline.
DraftKings is always looking out for growth opportunities. The company’s success in the sports betting part of the business means it’s now looking to expand into Missouri, which legalized sports betting in late 2024 and is now drafting regulations and receiving applications for licensing.
Missouri isn’t DraftKings’ only target. The company wants to launch its sportsbook in Puerto Rico. Again, this is dependent on market access, regulatory approvals, licensure, and contractual approvals.
How does the future look for DraftKings?
After years of losses, the 2024 financial year marked the first time DraftKings turned its fortunes around. The company is showing real growth potential, and investors will be following it to see if DraftKings’ newfound strong performance will continue in 2025. Experts are expecting DraftKings to become much more profitable over the next five years.
Entering new markets geographically isn’t the only expansion DraftKings is contemplating. There has been talk of the business offering future contracts on sports outcomes. The company has already proven it performs well during high-stakes sports events, so this product expansion may serve it well.
There’s also been discussion of expanding DraftKings’ fintech capabilities by accepting cryptocurrency. The surge in crypto market value and opportunities has gotten company leaders considering how they can capitalize on crypto for the business.
DraftKings has become a household name in the iGaming world, having expanded from offering fantasy sports betting to a wide range of online betting services. Despite a rocky few recent years, the company has emerged profitable from 2024 and has a promising future of growth and profitability ahead of it in 2025.