Jason Robins: International expansion isn't critical to DraftKings' future

DraftKings CEO Jason Robins has revealed the company is “open” to the prospect of international expansion but does not view it as a “need”. 

The Boston-based operator is currently live in 25 different US states plus Washington DC with mobile sports betting, representing a total addressable market of around 49% of the US population. 

The firm’s igaming offering is also available in five US states, which translates to approximately 11% of the country’s populace. 

DraftKings’ fiscal year 2025 revenue guidance, issued last week, anticipated a midpoint of $6.4bn (£4.9bn), which would generate year-on-year (YoY) growth of 31%, not including the potential boost generated by a launch in recently legalised Missouri.

However, during the operator’s Q3 earnings call, Robins was pressed for comment on whether the company could look to expand into international markets in the future, as opposed to remaining exclusively stateside.

In response, the CEO explained that while international expansion is not at the forefront of DraftKings’ agenda, he would not rule it out. 

Robins said: “I definitely don’t feel like it is a need. It’s more an opportunistic thing at this point, so it’s not to say that if the right opportunity came about, we wouldn’t pursue an international expansion strategy. 

“But I don’t think we feel like it’s a need. You noted growth, even without a ton of new states launching next year. We’re still well easily into a Rule of 40 company, with over 30% growth and around a 15% EBITDA margin.” 

Signing off on the topic, he added: “I definitely feel really good about where we are from a growth perspective and don’t need to look to those things, but also if the right opportunity comes along, we would be open to it.  

“I think we’re staying patient and waiting for the right thing.” 

It was a mixed Q3 2024 for DraftKings, with the operator generating $1.1bn (£848.8m) in revenue for the three months ending 30 September, which marked a YoY climb of 39% compared to the $790m amassed in the corresponding quarter last year. 

Bosses attributed the revenue rise to the impact of increased hold, improved promotional reinvestment and sportsbook expansion. 

However, the operator did post a notable drop in adjusted EBITDA to $58.5m, falling $95m from the $153.4m recorded in Q3 2023. Losses from operations also rose by $12m to $298.6m. 

DraftKings’ issued downward revisions to its revenue and adjusted EBITDA guidance for fiscal year 2024, citing “customer-friendly sport outcomes” in the opening exchanges of Q4 as the reason behind the estimated decline. 

Reflecting on the quarter, Robins said: “DraftKings delivered strong performance in the third quarter with the return of NFL and college football.

“With major sports converging on the calendar, we are well-positioned to build on this momentum as we further enhance our top-ranked sportsbook app with additional live betting features and exciting new NBA markets. 

“Our focus remains on driving sustainable revenue growth and profitability in 2025 and beyond.”