DraftKings’ (US:DKNG) shares recovered some of their steep Friday loss on Monday as investors digested the company’s latest earnings report.

The online sports betting firm said on Friday that it reported better-than-expected revenue for the start of the National Football League season and said more people are gambling across all its peers.

The company reported $502 million in quarterly revenue, more than double last year’s result.
DraftKing’s said its expansion into Kansas reduced customer promotion costs, and strong customer retention fueled the growth.

Average monthly unique paying customers increased in the third quarter rose 22%, to 1.3 million, but the firm noted a sharp decline in betting on fantasy sports leagues.

The average revenue per customer more than doubled to $100, the company said.

The sports betting industry is maturing as it grows, and the industry is nearing a turning point where giveaways and promotions to attract customers are not as good a strategy as it once was. The industry now expects to be profitable in 2023.

“We believe we are striking a great balance between maintaining an aggressive and customer-focused growth plan while simultaneously working to manage expenses,” company Chief Executive Officer Jason Robins said on a call with Wall Street analysts Friday.

The company now expects $2.16 to $2.19 billion in revenue for 2022, compared to the previously announced $2.08 to $2.18 billion.

DraftKings lost $450 million for the third quarter, compared with a net loss of $545 million in the same period last year. It now expects a loss in adjusted earnings before interest, taxes, depreciation and amortization between $780 million and $800 million for the year.

DraftKings expects to generate positive adjusted EBITDA in next year’s fourth quarter as it sees launches in Maryland later this year and in Ohio, Massachusetts and Puerto Rico next year.

The next big news for the industry comes on Tuesday when California voters decide on an online sports-betting ballot initiative backed by the industry. “We’re still deploying grassroots efforts, but the most recent polling suggests a likely unfavorable outcome for our coalition,”. Robins said.

This article originally appeared on Fintel

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