DraftKings CEO: We Took Different Advertising Approach In Massachusetts

Boston-based DraftKings reported $770 million in sales for the first quarter 2023 in last week’s earning call. Following the latest first-quarter results, DraftKings analysts are now forecasting $3.20 billion in revenue in 2023.

A major driving factor of DraftKings is its sportsbook, which is now live in Massachusetts.

Sports betting in Massachusetts launched on March 10, and DraftKings Sportsbook is one of six online operators in the state.

DraftKings’ focus on advertising

Over the past few months, DraftKings leaned into national advertising, especially during the NFL season.

Jason Robins, co-founder and CEO of DraftKings, said in the earnings call that Ohio, Maryland and Massachusetts saw national advertising all year, and during the entirety of the NFL season.

However, Robins also pointed out that being a Boston-based company, DraftKings made sure to lean into the local market.

“I think really, the only thing that we changed in terms of strategy was just making it clear that we’re a hometown company and obviously that’s unique to here,” Robins said. “I think New England in particular, we tend to love our own here. So we feel like that was a really good angle for this market and it worked.”

Commercials with a local angle were a big part of that effort. For example, DraftKings paid Boston legends Lenny Clarke, David Ortiz, Zdeno Chara and Brian Scalabrine to headline a “Bet Local” commercial that began airing in Massachusetts on March 10. So far, it’s been a hit.

DraftKings was top MA sportsbook in March

The reported revenue of $770 million is 9.9% ahead of consensus estimate of about $705 million. The company’s stock price is up 12% to $24.58, having nearly doubled (up 92%) so far this calendar year.

The jump in revenue continues a strong year for DraftKings, which was founded in Massachusetts.

When Massachusetts launched sports betting earlier this year, DraftKings made sure to capitalize. In the first month of MA online sports betting, DraftKings took in the most handle with $257.6 million, or 47% of the market.

Its biggest competitor, FanDuel, was a close second with a handle of $181.1 million, or 33% of the market. As a whole, the six MA online sportsbooks reported $548.1 million in total betting handle.

For the first month (March 10-31), DraftKings Massachusetts reported $15.6 million in revenue.

And that could be just the start.

“Knowing that Massachusetts hasn’t even had any football yet … there’s still probably a significant audience out there,” Robins said.