iGaming Weekly Recap (August 4–10, 2025): DraftKings, FanDuel, and Others Report Q2 Results

A federal court in Maryland denied Kalshi’s request for an injunction to prevent the state from enforcing its sports betting laws against the company. The core issue in KalshiEX LLC v. John A. Martin, et al. was whether the federal Commodity Exchange Act (CEA), which regulates Kalshi, preempts Maryland’s state sports betting laws. Judge Paula Xinis ruled that Kalshi failed to demonstrate a likelihood of success in its preemption claim, arguing that gambling regulation has traditionally been a state matter and Congress did not intend to strip states of this authority. Additionally, the CEA includes a “Special Rule” allowing the Commodity Futures Trading Commission (CFTC) to reject contracts that violate state law, which “clearly reflects an intent to preserve state law.”

DraftKings launched a new feature called “Early Exit,” aimed at refunding bets impacted by a player’s early injury. This pro-consumer initiative addresses one of the most frustrating issues faced by sports bettors. The program applies to pre-match, full-game player prop bets, including single bets, parlays, and Same Game Parlays. If a player covered by an eligible bet suffers an injury during the “early exit window” and does not return to the game, DraftKings will issue a cash credit to the user.

PENN Entertainment is introducing a new feature called FanCenter in its ESPN BET app, set to launch for the football season. This personalized hub directly integrates users’ ESPN Fantasy Football lineups and favorite teams with the sports betting environment, creating a deeply connected experience. Designed as a one-stop shop for personalized betting, FanCenter offers users a “For You” page with tailored betting recommendations (such as player bets, game markets, and custom parlays) based on their interests, betting history, and ESPN app preferences.

Nevada Representative Dina Titus called for an ethics investigation into Brian Quintenz, President Trump’s nominee for chair of the Commodity Futures Trading Commission (CFTC). The primary controversy surrounds Quintenz’s deep ties to Kalshi, a CFTC-regulated prediction market platform where he serves on the board and holds stock options. Titus alleges that Quintenz may have already violated federal law by improperly influencing the agency before his Senate confirmation, breaching his ethical obligations.

A coalition of 50 state and territorial attorneys general sent a formal letter to the U.S. Department of Justice (DOJ), demanding “robust legal tools” to address the “pervasive” issue of illegal offshore gambling operations. Addressed to Attorney General Pam Bondi, the letter accuses these unlicensed platforms of operating without consumer protections and evading state and federal taxes. They also highlight the risks to consumers, particularly young people, through “fraudulent schemes and highly addictive gambling without oversight or accountability.”

The National Football League (NFL) and ESPN have entered a groundbreaking agreement that fundamentally reshapes their relationship. Under the deal, ESPN will acquire NFL Network, distribution rights to NFL RedZone for pay-TV providers, and the official NFL Fantasy Football platform, integrating it with its own. In exchange, the NFL will receive a 10% equity stake in ESPN, becoming a co-owner of its largest media partner. Additionally, ESPN will gain broadcasting rights to three more NFL games per year, increasing its total to 28. The NFL will retain control over NFL Films, NFL.com, the NFL Podcast Network, and the websites of its 32 teams.

Bonus: Earnings Season – Summary

DraftKings reported record-breaking results in Q2 2025, achieving $1.51 billion in revenue, a 37% year-over-year increase. The company posted a net income of $158 million and an adjusted EBITDA of $301 million, more than doubling its previous record for this metric. Monthly unique payers (MUPs) grew by 6% to 3.3 million, while average revenue per MUP (ARPMUP) increased by 29% to $151. DraftKings also announced a $1 billion share buyback program, signaling strong confidence in its future. The company plans to introduce a “gaming tax surcharge” in four high-tax states to maintain competitiveness.

FanDuel, as part of Flutter Entertainment, also delivered strong results, with revenue up 17% year-over-year to $1.79 billion. The company’s adjusted EBITDA surged 54% to $400 million. The iGaming segment stood out, with revenue jumping 42% to $507 million, driven by a 32% increase in average monthly online casino players. Sports betting revenue grew 11% to $1.22 billion. The adjusted EBITDA margin improved by 5.3 percentage points to 22.3%, reflecting disciplined cost management, including a 13% reduction in sales and marketing expenses.

Genius Sports posted a strong Q2 with revenue growth of 24% to $118.7 million. The group’s adjusted EBITDA rose 64% to $34.2 million, with a record adjusted EBITDA margin of 29%. The company recorded a net loss of $53.9 million, primarily due to one-time, non-cash costs related to stock-based compensation and NFL warrants, not reflective of operational declines. A key highlight was the extension and expansion of its exclusive NFL data partnership through Super Bowl 2030.

Inspired Entertainment reported a mixed but resilient quarter, with a 7% year-over-year revenue increase to $80.3 million. Despite a net loss of $7.8 million, the company’s key profitability metric, adjusted EBITDA, grew 15% to $28.4 million, signaling operational strength. The Interactive (iGaming) segment was the strongest growth driver, with revenue up 45% to a record $13.6 million and adjusted EBITDA up 49% to $9.1 million. The company also completed a comprehensive debt refinancing of £288 million.

Light & Wonder demonstrated financial discipline, increasing net income by 16% to $95 million despite a slight 1% revenue decline to $809 million. The company’s adjusted EBITDA rose 7% to $352 million, with the AEBITDA margin improving by 4 percentage points to 44%. The iGaming segment was the top performer, with revenue up 9% to a record $81 million. The company finalized the acquisition of Grover Gaming and plans to transition to an exclusive primary listing on the Australian Securities Exchange (ASX). Additionally, it repurchased $100 million of its own shares in Q2, with its share buyback authorization increased to $1.5 billion.

PENN Entertainment significantly exceeded analyst expectations in Q2, reporting a surprise earnings per share (EPS) of $0.10, compared to forecasted losses. Total revenue reached $1.77 billion, surpassing projections. The Interactive segment, including ESPN BET and Hollywood iCasino, achieved record quarterly gaming revenue and significantly improved profitability. The segment’s adjusted EBITDA loss narrowed by $41 million year-over-year to $62.0 million. The Hollywood iCasino app saw a 29% increase in net gaming revenue and a 49% rise in monthly active users. The company repurchased $90.3 million of its own shares in the quarter.

Playtech raised its adjusted EBITDA forecast for the first half of 2025 to at least €90 million, driven by strong B2B segment performance and better-than-expected contributions from affiliate Caliente Interactive. Caliente Interactive benefited from “favorable sports outcomes” and paid Playtech its first dividend under a revised strategic agreement. The company plans increased investments in the second half of the year in key markets like the United States and Brazil.

Sportradar reported a record Q2, with revenue up 14% to a record €318 million. The U.S. segment was the primary growth driver, with revenue increasing 30% to €88 million, now accounting for 28% of total revenue. Adjusted EBITDA rose 31% to €64 million, with the adjusted EBITDA margin improving by 254 basis points to 20.1%. The company recorded a net profit of €49 million, compared to a €2 million loss in Q2 2024. Sportradar raised its full-year 2025 guidance, expecting revenue growth of at least 16% to a minimum of €1.278 billion.