Leading sportsbook operator DraftKings just confirmed it had its best quarter in its history as a company in Q2 2025, setting all-time records in sportsbook revenue and profit margin.
DraftKings confirmed in a financial report that it produced $1.5 billion in total revenue, a 33% year-over-year increase, per Legal Sports Report. It also reported $158.3 million in net income and $301 million in adjusted EBITDA, which was more than double what it managed during the same time a year ago.
All of that was confirmed in what was DraftKings’ first second quarter with a net-positive profit line.
Strong financials
DraftKings is comfortably one of the two largest sports betting operators in America, alongside market leader FanDuel.
The sports betting and online gambling company confirmed that its sportsbook revenue margin hit a company record 8.7%, 2.3 points better than the 6.4% mark it hit in Q2 2024, and beyond the projected 7-7.5% mark.
Sportsbook revenue jumped 45% to $998 million despite just a 6% uptick in betting volume to $11.5 billion. That was driven by an increase in parlay and live betting from consumers.
Additionally, DraftKings relayed that $110 million of its revenue for the period came from favorable outcomes, such as the historic lack of upsets in March Madness, and many unpredictable outcomes during the NBA playoffs.
Whereas bettors know to pick underdogs during March Madness, many parlay favorites during the regular season and playoffs for the NBA and other professional leagues. That’s why the high number of playoff upsets worked in the company’s favor.
Perhaps most impressively, DraftKings’ quarter came during the “dead season” in sports, when many major leagues aren’t in session.
Future outlook
While DraftKings thrived as a whole, its live betting markets increased their handle by a strong 16% year-over-year. DraftKings CEO Jason Robins said that live betting represented the largest source of betting in “many markets” and played a huge role in the company’s overall performance.
“We are the leader right now and have by far the best offering. We had over 90% uptime in all of our core live markets last quarter, which is an industry-leading number.”
Sportsbooks have mostly covered all of their bases when it comes to creating betting options in major markets, props, and futures. Live betting has not received the same level of focus in years past, though Robins believes that will change.
“I think one, it’s going to be the source of handle growth for the industry in the next probably couple of years … we’re really playing from a position of strength in the area that’s likely to be the biggest source of growth for the handle side of the OSB market in the next few years.”
All that said, the company’s monthly user base grew only 6% YoY. That’s the lowest rate for a quarter since DraftKings went public in 2020.
Robins said the company’s strategy has started to evolve: growing within its customer base rather than acquiring a new audience.
With the NFL season around the corner and an upcoming sports betting launch in Missouri, DraftKings is optimistic that it can beat its year-end estimates.