DraftKings

What DraftKings does

DraftKings Inc. (NASDAQ: DKNG) is a US-headquartered, publicly traded online gaming technology company founded in 2012 and headquartered in Boston, Massachusetts. It operates a vertically integrated proprietary platform spanning four core product lines: DraftKings Sportsbook (online sports betting with 220+ NFL SGP legs per game, operating in 25+ US states), DraftKings Daily Fantasy Sports (cash-prize contests across NFL, NBA, MLB, NHL, soccer, golf, UFC, and more), DraftKings Online Casino (slots, table games, and live dealer in CT, MI, NJ, PA, WV), and DraftKings Predictions (CFTC-regulated event contracts via the DKeX exchange acquired through the $228.7M Railbird Technologies deal in October 2025). The platform is delivered through native iOS and Android mobile applications, web interfaces, and a media/content arm (DraftKings Network) distributed across connected TV platforms.

DraftKings generates revenue primarily through transaction fees and hold percentages: it acts as the house on sports wagers (hold rates typically 4-10% of handle depending on sport), collects 10-20% rake on paid DFS entry fees, earns house edge on casino games, and targets a 2% commission on prediction market trading volume. Pricing is variable and event-driven, with fast PayPal withdrawals (median 4 hours 12 minutes) cited as a differentiator. Customer acquisition is heavy: DraftKings and FanDuel together spent $1.26B on advertising, with DraftKings planning $200-300M in 2026 acquisition spend. The company holds approximately 33% of US regulated sports-betting handle, forming a duopoly with FanDuel that controls roughly 70% of the market.

The company serves individual consumer segments including sports bettors, DFS players, online casino players, and prediction market traders. Distribution is direct-to-consumer, supplemented by retail casino partnerships (Southland Casino in Arkansas, Casino Queen in Illinois) and exclusive marketing partnerships with NBCUniversal and Telemundo for Spanish-language World Cup coverage. The business has reached scale with 4.2 million Monthly Unique Payers, FY2024 revenue of $4.77B and FY2025 revenue of approximately $6.05B, and its first full-year positive Adjusted EBITDA of $181M in FY2024, with Q1 2026 Adjusted EBITDA up 64% YoY at $167.85M.

Name

DraftKings

Legal name

DraftKings Inc.

Website

https://draftkings.com

Company type

Public

Founded year

2012

Operating status

Operating

Headcount range

5,001–10,000 employees

Short description

DraftKings is a publicly traded US online gaming company operating sports betting, daily fantasy sports, online casino, and CFTC-regulated prediction markets through mobile and web platforms, serving millions of consumers across 25+ US states with the core sportsbook product.

Ownership category

akta.pro rank

Product category

Online Sports Betting and Gaming

NAICS

Gambling Industries (7132), Other Gambling Industries (713290), Other Gambling Industries (71329), Spectator Sports (71121)

SIC

Commodity Contracts Brokers & Dealers (6221)

akta.pro primary industry

Sportsbooks (Online & Mobile Operators) (MPAEACAA)

akta.pro secondary industries

Daily Fantasy Sports (DFS) Operators (MPAEAHAA), Fantasy Player Props & Pick’em (Skill-Based Fantasy) (MPAEAHAG), Tipsters, Picks & Betting Advice Lead Gen (MPAEAMAE), Fantasy Sports Monetization & Commerce (Subscriptions, Premium Tools, Marketplaces) (MPAEAHAI)

Keywords

• Online sports betting
• Daily fantasy sports
• Online casino gaming
• Prediction markets
• Mobile sportsbook

Headquarters

HQ city

Boston

HQ country

United States

HQ region

North America

Offices5 records

Markets served

GTM type

B2C

Offering type

Services

Cost components

Marketing or Sales, Technology or R&D, Personnel, Operations, Others

Revenue model

1. Sportsbook (Online Sports Betting): DraftKings generates revenue primarily through hold percentages on sports wagers placed through its online sportsbook platform. The company acts as the house, collecting the spread between odds offered and true probabilities. Sportsbook revenue is driven by handle volume and hold rates.
2. Daily Fantasy Sports Contests: Revenue generated from entry fee commissions (rake) on paid fantasy sports contests, typically 10-20% of entry fees. Free contests are available but paid contests with cash prizes represent the primary revenue stream from DFS.
3. Online Casino: Revenue from online casino games including slots, poker, table games, and live dealer games in regulated states (Connecticut, Michigan, New Jersey, Pennsylvania, West Virginia). Generates house edge on casino game wagers.
4. Prediction Markets (DraftKings Predictions): CFTC-regulated event contracts platform where DraftKings earns commission on trading volume. The company targets 2% commission rate over time at approximately 80% gross margin at maturity, with expectations of becoming nearly break-even EBITDA contribution in 2027.

Pricing tiers

Go-to-market motion1 record

Distribution channels3 records

Marketing channels5 records

Core offering

DraftKings operates a vertically integrated online gaming platform that lets individual consumers place real-money sports wagers, enter paid daily fantasy sports contests for cash prizes, play online casino games such as slots and live dealer tables, and trade CFTC-regulated prediction-market event contracts on real-world outcomes. The company earns revenue through the hold percentage on sportsbook bets, entry-fee commissions (rake) on DFS contests, the house edge on casino games, and trading commissions on prediction markets, delivered through proprietary iOS/Android apps and web platforms in 25+ US states.

Product overview

DraftKings operates as a multi-product gaming technology platform offering both fantasy sports and real-money wagering products. The core offerings include DraftKings Sportsbook (online sports betting), DraftKings Daily Fantasy Sports (DFS contests), and DraftKings Online Casino. These are supplemented by DraftKings Pick6 (simplified player stat prediction game), DraftKings Predictions and DKeX (CFTC-regulated prediction market exchanges for trading event contracts), DK Horse (horse racing betting), and DraftKings Pools (free bracket/pick'em contests). DraftKings Network serves as the company's media and content arm providing sports betting picks and fantasy advice. The platform is accessible via web, dedicated iOS and Android mobile apps, and operates across 25+ U.S. states for sports betting with casino available in CT, MI, NJ, PA, and WV.

Differentiator

Problem solved

Functional benefit

Brands

• DraftKings Predictions: CFTC-regulated event contracts and prediction market platform for trading on real-world outcomes
• DraftKings Sportsbook
• DraftKings Casino
• DraftKings Pick6

Products and services

• DraftKings Sportsbook Online and mobile sports betting platform allowing users to wager on professional and college sports including NFL, NBA, MLB, NHL, soccer, UFC, NASCAR, golf, and tennis, offering moneyline, spread, totals, player props, parlays, same-game parlays, and live in-game betting with real-time odds in 25+ US states.
• DraftKings Daily Fantasy Sports (DFS) Daily fantasy sports contests in which users draft fantasy lineups of real athletes and compete for cash prizes based on statistical performance across NFL, NBA, MLB, NHL, golf, NASCAR, F1, UFC, soccer, college football, college basketball, and esports, with entry fees ranging from free to thousands of dollars.
• DraftKings Online Casino Online casino gaming product offering slots, blackjack, roulette, craps, poker, live dealer games, and jackpots, available in Connecticut, Michigan, New Jersey, Pennsylvania, and West Virginia.
• DraftKings Pick6 Simplified pick'em game in which users make more/less picks on player statistics across sports such as NFL, NBA, MLB, WNBA, UFC, NASCAR, World Cup, and esports, available on mobile app and web.
• DraftKings Predictions CFTC-regulated mobile prediction market platform that lets users trade regulated event contracts on real-world outcomes including sports, politics, and entertainment.
• DKeX (DraftKings Exchange) DraftKings' CFTC-regulated Designated Contract Market (DCM) exchange platform offering standardized binary event contracts at $1.00 notional size with 125,000-contract position caps, enabling event contracts without separate state sportsbook licenses.
• DK Horse (DraftKings Horse Racing) Horse racing betting platform that lets users wager on horse races through dedicated iOS and Android mobile applications.
• DraftKings Pools Free-to-play pool contests where users create or join groups to compete by picking game winners, typically centered on major sporting events such as NFL season-long pools or tournament brackets.

Quantifiable outcome

• Q1 2026 Adjusted EBITDA of $167.85 million, up 64% year-over-year
• +3 more outcomes

Named customers2 records

Segments4 records

Ideal customer profiles4 records

Technology focussed Yes

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration1 record

AI capability4 records

Feature3 records

Partnerships

Five partnerships are on record, tiered core and minor.

• NBCUniversal/TelemundocoreGTM or Marketing Partner · 11 June 2026DraftKings secured marketing partnerships with NBCUniversal and Telemundo providing exclusive access to Spanish-language bettors during the 2026 FIFA World Cup. These partnerships position DraftKings as the primary beneficiary of the World Cup gambling boom, with Bernstein analysts identifying the company as the clear winner from World Cup betting activity.
• Railbird Technologies Inc.coreStrategic or Co-development Partner · 21 October 2025DraftKings completed acquisition of Railbird Technologies Inc. and its subsidiary Railbird Exchange, LLC for approximately $228.7 million. The acquisition provides DraftKings with a federally licensed prediction markets exchange, technology, licensing, and team to support the launch of DraftKings Predictions mobile app for trading regulated event contracts.
• Oaklawn Casino (Arkansas)minorChannel Partner/ Reseller/ DistributorOaklawn Casino partnered with FanDuel for online sports betting, not DraftKings. DraftKings partnered with Southland Casino in Arkansas for online sports betting operations.
• Southland Casino (Arkansas)minorChannel Partner/ Reseller/ DistributorDraftKings partnered with Southland Casino for online sports betting operations in Arkansas. Southland handled $35.6 million in online bets in April 2025, though the partnership resulted in operating at a loss despite higher revenue due to aggressive promotion and free play offered.
• Casino Queen (East St. Louis, Illinois)minorChannel Partner/ Reseller/ DistributorDraftKings continues to operate Casino Queen Sportsbook in East St. Louis, Illinois, following the closure of its Wrigley Field retail location. This represents DraftKings' remaining retail presence in Illinois alongside its online sportsbook operations.

Scale indicators15 records

Recent moves7 records

Expansion highlights7 records

Direct peers

• FanDuel: Flutter Entertainment-owned sportsbook and DFS operator and the dominant US competitor with ~37% handle share; directly competes head-to-head with DraftKings across sports betting, DFS, and iGaming in the same 25+ state footprint.
• BetMGM: MGM Resorts/Entain joint venture operating online sportsbook and iGaming in the US; competes directly with DraftKings across sports betting and casino verticals using MGM's land-based database.
• Caesars Sportsbook: Caesars Entertainment's online sports betting and iGaming product; overlaps DraftKings' sportsbook and casino offerings with cross-promotion from Caesars Rewards loyalty program.
• Bet365: Private UK-based online sportsbook and iGaming operator with growing US footprint; comparable product breadth in sports betting and online casino.
• ESPN BET: Penn Entertainment's sportsbook branded with ESPN; directly competes with DraftKings Sportsbook in the same legal US states with strong media-distribution advantages.
• BetRivers / Rush Street Interactive: Rush Street Interactive operates BetRivers online sportsbook and casino in the US; competes in the same regulated state footprint with similar product mix.
• Hard Rock Bet: Hard Rock Digital's online sportsbook operating in multiple US states; comparable product offering to DraftKings Sportsbook with brand-led customer acquisition.

Emerging players

• PrizePicks: US-based DFS operator specializing in player prop pick'em contests; competes with DraftKings Pick6 and DFS products with a more focused, mobile-first offering.
• Underdog Fantasy: DFS operator offering best-ball and pick'em contests; overlaps DraftKings DFS and Pick6 with growing mindshare among younger sports bettors.
• Kalshi: CFTC-regulated Designated Contract Market for event contracts; competes directly with DraftKings Predictions and DKeX in the prediction markets vertical.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights7 records

Customer concentration

• Xx.com/DraftKings
• YouTubeyoutube.com/channel/UCMJAKnrVv1sRzlq_vqige3Q
• Facebookfacebook.com/DraftKings
• LinkedInlinkedin.com/company/draftkings-inc-
• Instagraminstagram.com/draftkings
• TikToktiktok.com/@draftkings

Revenue estimate

Valuation estimate

Number of profiles

Profiles10 records

Subsidiaries1 record

Funding overview

Funding rounds16 records

Investors31 records

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A12 records

Investments4 records

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about DraftKings