DraftKings is continuing its climb in the sports betting industry with a massive Q2 revenue boost, but the available pool of new bettors may be slowly drying out.

On August 6, 2025, DraftKings released its financial report for Q2 of 2025. In the earnings call, the company boasted a 37% increase in revenue compared to the same period last year, which it attributed to customer engagement and “sportsbook-friendly outcomes.” However, the fly in the ointment is the company’s monthly users, which significantly dropped compared to Q1. DraftKings recognizes the deficiency and has a plan to solve it, but the stock market has already reacted to the disappointing news.

In its Q1 2025 report, DraftKings reported an average monthly unique payer (MUP) count of 4.3 million, up 28% from Q1 of 2024. However, the latest update lists the MUP count of Q2 at 3.3 million. Losing 1 million users in just three months doesn’t bode well for the company, even if it maintains its year-over-year growth.

The stock market’s reaction to the call is also underwhelming. DraftKings’ share price bumped up from $45.36 to $48 at the end of the day, but has since dropped. It currently sits at just over $44 a share, approaching its monthly low.

To deal with the MUP drop, DraftKings is currently in the process of launching its sportsbook in Missouri. However, the state’s legalization process is more complicated than others. The state has strict application windows and a limited number of licenses designated for standalone operators. DraftKings claims to have submitted its mobile betting license application before the July 15 deadline, but full sportsbook availability is likely still months away.

Esports unlikely to boost revenue at DraftKings

While DraftKings does offer esports betting, the vertical doesn’t appear to play a major role at the company.

DraftKings offers daily fantasy for Rocket League, Call of Duty, League of Legends, and Counter-Strike 2. It also offers match betting for major events. However, it does not prominently advertise its esports features and lumps all games together in the sportsbook. DraftKings’ esports strategy appears to be based around preventing existing users from betting on other sites rather than attracting dedicated esports fans.

Perhaps the biggest signal of this strategy is the way it writes the word. All esports offferings on the site are written as “e-sports” rather than the more contemporary hyphen-less spelling.

Missouri’s betting legislation does not mention esports at all, nor is the state considered a big market for competitive gaming. While expanding into the state may help its MUP problem, esports is unlikely to solve DraftKings’ user count problem.