Meanwhile, the business reported negative $153m in EBITDA for the quarter, a year-on-year improvement, but down from the positive $73m sum recorded in Q2.
A full revenue and EBITDA breakdown can be found here.
Robins said he was “bullish” on the prospects of iGaming in the US for the year ahead.
“iGaming is probably the one piece of our business I point to that is under talked about,” he said.
The DraftKings chief noted online casino launches have eased the pressure on reacquiring customers, because “such a large percentage of our share comes from cross sell.”
The business launched Golden Nugget Online Casino in Pennsylvania in August, the first state where the operator’s iGaming brand launched on the DraftKings platform.
Robins said this migration would be rolled out to all four of the remaining iGaming states in the year ahead.
“Over the next couple of quarters, we are going to migrate pretty much every state for Golden Nugget Online Gaming. So really, I think that’s something that will also contribute to a little bit of the share increase,” he said.
“We’re pretty bullish on the gaming opportunity and feel lots of exciting potential tailwinds in the 2024 product roadmap there,” he added.
iGaming legalisation efforts largely failed during the 2023 legislative sessions. However, there are hopes next year could be more fruitful.
DraftKings becomes US market leader
In October, Eilers & Krejcik Gaming (EKG) released a report suggesting DraftKings had overtaken FanDuel as the US online GGR market leader.
Robins addressed the potential drivers behind this on the company’s Q3 earnings call.
“Internally, we see all of our metrics going in the right direction: retention rates or hold rates up, while promotional reinvestment rate across OSB and iGaming is down,” he said.However, Robins primarily opted to point to what he described as product leadership.
“We certainly know that, among players that have tried multiple apps, we’re the best.”
However, Robins conceded it was difficult to tease out to what extent the share increase was driven by new players or retention rates, as opposed to stealing users from competitor sites.
The executive also outlined the business’ thinking in terms of its global strategy.
He said the company’s product and technology investments, as well as other operational marketing infrastructure, is potentially “portable throughout the globe”.
Despite hinting at global expansion, Robins suggested the company was mindful of trying to do too much.
“With that said, we also understand that the largest market in the world is developing right now. We’re in a really strong position and a lot of what we feel has helped us and benefited us has been our singular focus here,” he added.
Michael Graham from Canaccord Genuity asked whether DraftKings was trying to follow the same path as set by tech giants whereby they aim to institutionalise an engineering lead.
Robins said this was “absolutely essential” in the firm’s strategic thinking.
“We’ve said pretty much from day one that product wins. That is first and foremost the thing that has to be at the absolute forefront of the industry in order to be the best.
“Really the heart and soul of the organisation is product and technology. And I think you’re absolutely right, that’s something that we feel over the last several years has been a differentiator.”
“I definitely think that cracking down on the illegal market is a good thing for us. I believe the AGA said that just in legal betting states alone, there is about $4bn revenue leakage happening into the illegal market.”
DraftKings CEO Jason Robins on Michigan, New York, and Florida cracking down on DFS player props.
Current trading and outlook
In Q3, DraftKings updated 2023 full-year revenue guidance to between $3.67bn and $3.72bn, compared to the previous range of $3.46bn and $3.54bn.
In addition, the business said it would be able to reduce its forecast EBITDA losses to between $95m and $115m. This is opposed to the originally predicted $190m to $220m loss for 2023.