DraftKings will be launching its mobile app for Maryland sports betting, but when that happens is still pending because the state is unsure when the market will go live.
Maryland has legalized sports betting, but is currently working through getting more retail sportsbooks live before turning its attention to mobile sports betting. The progress has been slow in Maryland since Gov. Larry Hogan signed the bill into law in May 2021.
In December, Hogan placed the first retail sports bet in the state. There are five retail sportsbooks live with others pending.
When mobile sports betting does launch in Maryland, it is expected to be a robust market with up to 60 operators, including the biggest national online sportsbooks. DraftKings Maryland will be one of them.
“There are three U.S. jurisdictions that have legalized mobile sports betting in which we are preparing to launch on licensure and approval from regulators: Maryland, Ohio and Puerto Rico,” DraftKings CEO Jason Robins said during Friday’s Q1 2022 earnings call. “These three jurisdictions represent approximately 7% of the U.S. population and will bring the percentage of the population where DraftKings expects to offer legalized sports betting to approx. 43%.”
Although hopeful on launching during the NFL season, Maryland’s deliberate approach has some sportsbook operators saying they aren’t certain it will go live in 2022.
On an earnings call this week, Caesars CEO Tom Reeg said “I'm skeptical Maryland launches mobile in ’22.” But he did say when Maryland goes live it will be a good opportunity for his company.
There are five retail sportsbooks currently at casinos in Maryland — Hollywood Casino in Perryville; MGM National Harbor in Oxon Hill; Horseshoe Casino in Baltimore; Live! Casino & Hotel in Hanover; and Ocean Downs Casino in Berlin.
DraftKings Revenue Beats Estimates
On Friday, DraftKIngs announced Q1 revenue of $417 million, which exceeded expectations by $7 million. The Boston-based company’s adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) outperformed expectations, up more than 12%. But its losses were about $467 million in Q1.
“DraftKings delivered significant growth across our key revenue and performance metrics. We are not seeing any impact from inflationary pressures on customer demand, and we continue to improve the user experience by adding breadth and depth to our DFS, mobile sports betting and iGaming products,” Robins said in the release of earnings. “We are also improving our efficiency in acquiring and retaining customers and have a strong pipeline of new jurisdictions to enter.”
DraftKings on Friday also reported adjusted earnings per share of -74 cents, beating estimates of -$1.15 EPS. DraftKings stock was just over $13 a share on Nasdaq Friday, down about 8% on the earnings report Friday. Its 52-week high is $64.58.
Revenue Guidance Increased for 2022
DraftKings also adjusted its expected revenue for the remainder of the year:
- 2nd quarter: $400-$420M
- 3rd quarter: $400-$420M
- 4th quarter: $730-$750M
“We are pleased with our strong revenue and Adjusted EBITDA performance in the first quarter, which was driven by healthy underlying customer behavior and our ability to capture efficiencies,” DraftKings Chief Financial Officer Jason Park said. “Therefore, we are increasing the midpoint of our fiscal year 2022 revenue guidance by $50 million and improving the midpoint of our fiscal year 2022 Adjusted EBITDA guidance by $75 million.”