DraftKings has delivered solid first-quarter results, posting revenue of $1.646 billion and notching a 17% year-on-year increase. But here’s where it gets interesting. Whilst overall revenue is climbing, the company’s monthly unique player count actually fell 4% to 4.2 million. That raises a real question: is this growth sustainable, or is DraftKings just squeezing more money from the players it already has?

The Customer Paradox

The decline in monthly unique payers is almost entirely down to DraftKings’ 2025 exit from the Texas lottery market. Strip that out, and the core business showed a 2% uptick in players. Respectable, sure. Explosive? Not quite. The real story, though, lies in what the company is doing with the players it keeps: average revenue per user jumped 21% to $131 per quarter. Someone’s spending more, even if the crowd isn’t growing.

This metric matters because it tells you whether DraftKings is winning through volume or through engagement and monetisation. Right now, it’s clearly the latter.

Sportsbook Margin Expansion Driving the Show

Sportsbook revenue climbed 24.1% to $1.09 billion, even though actual betting handle only rose 1.5%. The magic word here is margin. DraftKings expanded its sportsbook margin from 6.4% to 7.8%, meaning it’s keeping more of what punters stake. That’s either smart pricing or tighter odds depending on your perspective, but it’s definitely working for the operator.

iGaming revenue grew 8.9% to $461.3 million and now accounts for nearly 28% of total revenue. This is the segment to watch going forward, offering real diversification beyond sports betting.

The Predictions Push

CEO Jason Robins signalled that DraftKings wants to establish a leadership position in Sports Predictions by year end. It’s the company’s bet on the next wave of product innovation, leveraging its Super App infrastructure and proprietary exchange technology. Whether predictions takes off or remains a niche product? The jury’s still out. But it’s clearly where DraftKings sees an opportunity to differentiate.

The Numbers Ahead

DraftKings expects full-year 2026 revenue between $6.5 billion and $6.9 billion, with Adjusted EBITDA projected at $700 million to $900 million. That signals confidence in maintaining momentum through the rest of the year. Profitability is improving across the business, which gives the company flexibility to invest in growth areas whilst returning capital or reinvesting in product.

The earnings call on 8 May will be worth watching for colour on how the company plans to reverse that player count decline in the second half of the year.