Mounting costs lead DraftKings to 2019 loss
DraftKings' revenue increased year-on-year for 2019 and but losses widened, as its merger with SBTech approaches, but the operator remains confident of seeing earnings exceed $1bn in the long-term.
The daily fantasy sports and sportsbook operator’s net revenue came to $323m, up 42.7% year-on-year.
This was offset by several large operating costs, though, which combined to total $470m, up 55.1%. Costs of revenue, including taxes, platform costs, payment processing costs and revenue share payments to affiliates came to $104m, up 113.6%.
Sales and marketing costs totalled $185m, up 27.1%, while product and technology costs came to $56m, up 70.3% and general and administrative costs were $125m, up 64.7%.