DraftKings Inc. surged as much as 10 per cent after raising its 2020 revenue forecast, an indication that the rise of sports betting shows no signs of slowing.

The Boston-based company expects revenue in a range of US$540 million to US$560 million, excluding some items, up from its previous forecast range of US$500 million to US$540 million, it said in a statement Friday. That would mean year-over-year revenue growth of 25 per cent to 30 per cent.

DraftKings said its forecast assumes all announced sports calendars are maintained through the end of the year -- and that’s not a sure thing, with coronavirus cases rising rapidly nationwide. College football programs had to cancel or postpone at least 18 games in the first half of November due to COVID-19 outbreaks.

One thing to keep an eye on is college basketball. The Ivy League announced Thursday that it was canceling its winter sports season. It was the first conference to shut down sports at the onset of the pandemic. If the Ivy is the canary in the coal mine again, that could weigh on the guidance provided for next year.

In the third quarter, DraftKings saw an increase in monthly unique players of 64 per cent, topping 1 million, as major sports leagues like the NBA, MLB and NHL returned. The growth in the number of monthly players, a key metric, showcased the company’s data-driven sales and marketing approach, Chief Executive Officer Jason Robins said in the statement.

Third-quarter revenue of US$133 million was at the top of the company’s forecast range and beat analysts’ consensus estimate of US$131.7 million, as compiled by Bloomberg.

DraftKings shares were up 8.4 per cent to US$44.70 at 9:39 a.m. in New York. The stock was up 286 per cent for the year through Thursday.