DraftKings Posts Second Quarter of Profitable Operations
In the rapidly expanding US sports betting and iGaming sector, DraftKings and Rush Street Interactive (RSI) are making significant strides. While financial details for DraftKings are not yet available for the recent quarter, the company's growth trajectory is evident in the strong performance of its peers.
DraftKings reported an average of 3.3 million monthly users in Q2 of 2025, marking a 6% increase from Q2 of 2024 and a 57% increase from Q2 of 2023. This growth is mirrored in the average revenue per user, which rose to $151 in Q2 of 2025, up 29% from the same quarter in 2022 and 10% from 2023.
CEO Jason Robins hinted at potential future offerings, such as a futures market product, during a conversation with Sportico earlier this year. However, DraftKings kept its full-year revenue and EBITDA projections for 2025 unchanged. Notably, the company had only one previous profitable quarter, which was Q2 of 2024, with earnings per share of $0.12.
DraftKings' stock has seen a positive trend this year, with a 22% increase so far and an 11% rise over the past month. The stock experienced a further 6% increase in after-hours trading on Wednesday. The company went public in April 2020.
Meanwhile, Rush Street Interactive, operating in the same online sports betting market, is also experiencing growth. Despite not having specific figures for the recent quarter, RSI's expanding market share amid increasing competition is noted. The broader US sports betting market is growing, with gross gaming revenue rising 15% year-over-year in July 2025, and increased hold rates in major states contributing to industry profitability.
Rush Street's positioning as a challenger gaining efficiency and share against larger incumbents like BetMGM and Fanatics is highlighted. However, the company's guidance for 2025 now includes the anticipated impact of higher tax rates in New Jersey, Louisiana, and Illinois, as well as the launch of its sportsbook in Missouri.
It's important to note that the competitive landscape and regulatory environment require ongoing strategic execution for both DraftKings and Rush Street to maintain this positive performance. Investor interest remains high, but risks such as margin pressures and competitive intensity are present, as seen in Sportradar’s cautious outlook despite increased revenue guidance and buyback activity.
New product offerings, player engagement strategies, and state-level regulatory policies remain critical for companies like Rush Street and DraftKings to sustain growth. As these companies navigate this dynamic industry, they continue to demonstrate robust momentum in their gaming and sports betting operations.
[1] BetMGM Q2 2025 earnings report
[2] Sportradar Q2 2025 earnings report
[3] DraftKings Q2 2023 earnings report
[4] Rush Street Interactive Q2 2025 earnings report (unavailable at the time of writing)
[5] US sports betting market trends
- The analysis of DraftKings' Q2 2025 earnings report indicated a 6% increase in monthly users compared to Q2 2024, and a 57% increase compared to Q2 2023, with an average revenue per user of $151.
- In the technology-driven sports betting and finance sector, companies like DraftKings and Rush Street Interactive are not only expanding their market shares but also exploring new investing opportunities, such as futures market products.
