DraftKings CEO Jason Robins urged caution over the start of the NFL season, citing it is having a ‘material impact on the numbers’ as he spoke to ‘First on CNBC’.
The return of the US national sport inevitably spikes customer acquisition and sees increased engagement across the firm’s sports betting platforms, however, Robins underlined the need to data before making assumptions that may prove to be off.
“Last year we saw such strong customer acquisition and activation, retention, everything was up at record levels at the start of the last NFL season, so it’s also a bit of caution saying ‘wow that was so good, can we really top that or even repeat it again’?
In its Q2 results, the firm highlighted strong customer retention and acquisition as drivers of Q2 growth, the company noted that Monthly Unique Payers (MUPs) for its B2C segment increased 281% year-on-year.
On average, 1.1 million monthly unique paying customers engaged with DraftKings during each month of the second quarter.
Average Revenue per MUP (ARPMUP) was $80 in the second quarter of 2021 representing a 26% increase versus the same period in 2020. The firm noted: “Our ARPMUP was positively impacted by the return to a more normal sports schedule, which resulted in stronger and more consistent customer engagement across our DFS and sportsbook product offerings.”
Further building on this, DrafKings also entered into a definitive agreement today to acquire Golden Nugget Online Gaming Inc in an all-stock transaction worth circa $1.56bn.
Robins stated on the deal: “Our acquisition of Golden Nugget Online Gaming, a brand synonymous with igaming and entertainment, will enhance our ability to instantly reach a broader consumer base, including Golden Nugget’s loyal ‘igaming-first’ customers.
“This deal creates meaningful synergies such as increased combined company revenues driven by additional cross-sell opportunities, loyalty integrations and tech-driven product expansion as well as technology optimization and greater marketing efficiencies. We look forward to Tilman being an active member of our Board and one of our largest shareholders.”