DraftKings

DraftKings Inc. was founded in 2012 in Boston, Massachusetts, by former Vistaprint employees Jason Robins, Matt Kalish, and Paul Liberman. The company initially launched as a daily fantasy sports (DFS) provider, with its first product being a one-on-one baseball competition coinciding with Major League Baseball's opening day. Over the years, DraftKings quickly gained prominence as one of the leading U.S. daily fantasy operators, building national brand awareness through aggressive consumer marketing and product innovation.

Business Model

DraftKings operates on a direct-to-consumer, transaction-based digital gaming model, where customers participate in wagering and gaming activities rather than subscribing. The primary revenue engines are its sportsbook and iGaming offerings, supplemented by daily fantasy sports, horse-racing wagers, and retail sportsbook experiences in some locations. The company earns revenue in sportsbook from the spread between wagers accepted and payouts, often referred to as "hold," while in fantasy sports, it collects a rake from entry fees. This model is highly repeat-driven, emphasizing customer retention and wallet share as much as user acquisition. DraftKings leverages an ecosystem approach, integrating fantasy sports, sports betting, and iGaming into a single platform to enhance user engagement and facilitate cross-selling, thereby reducing acquisition costs and increasing lifetime value.

Core Products and Platforms

DraftKings offers a suite of consumer-facing digital gaming products accessible through its website and mobile apps, all sharing a common account, wallet, and brand ecosystem.

DraftKings Sportsbook: This is the company's flagship product in many markets, allowing customers to place pre-game and live bets across major sports, including parlays and same-game parlays. It serves as a central component for brand visibility and customer acquisition. DraftKings Casino (iGaming): The online casino offering includes slots, table games, and live-dealer content where legally permitted. It is strategically important due to its potential for higher-frequency engagement and stronger economic contributions compared to the sportsbook. The company also operates under the Golden Nugget Online Gaming brand following its acquisition in 2022. DraftKings Daily Fantasy Sports (DFS): The product that initiated DraftKings' journey, allowing users to draft teams of professional athletes and compete in daily or weekly contests based on their statistical performance for cash prizes. It acts as a low-cost customer acquisition funnel, particularly in states where sports betting is not yet legal. Jackpocket: Acquired in February 2024, Jackpocket is a digital lottery courier app that expands DraftKings' reach into the digital lottery category, aiming to attract casual players and strengthen its customer pipeline. DraftKings Predictions: Launched in December 2025, this platform allows users to bet on and trade contracts tied to the outcomes of sporting events and other real-world occurrences, regulated by the CFTC. The company also launched its proprietary prediction markets exchange, DKeX, in June 2026, further advancing this offering. DraftKings Network: A multi-platform content ecosystem that delivers original audio and video sports and sports betting content, driving brand loyalty and engaging fans.

Market Position and Competitors

DraftKings holds a significant market position, often vying with FanDuel for the top spot in the U.S. online sports betting market. As of Q1 2026, DraftKings commanded approximately 32-34% share of the U.S. online sports betting across legalized states. The company also holds about 27% of the U.S. online casino share after the Golden Nugget Online Gaming acquisition. Key competitors include FanDuel, Bet365, BetMGM (Entain/MGM Resorts International), Caesars Entertainment, Penn Entertainment, and Wynn Resorts. DraftKings distinguishes itself through its owned technology stack, product innovation, and a strong brand, rather than an omnichannel physical casino network.

Licensing and Regulatory Footprint

DraftKings operates in regulated digital gaming categories, primarily across the United States and in Ontario, Canada. Its sportsbook and iGaming products are live in numerous U.S. jurisdictions, with daily fantasy sports available in 44 states, certain Canadian provinces, and the United Kingdom. The company holds licenses from various regulatory bodies, including the Pennsylvania Gaming Control Board, Michigan Gaming Control Board, West Virginia Lottery Board, New Jersey Division of Gaming Enforcement, Connecticut Department of Consumer Protection, Alcohol and Gaming Commission of Ontario (AGCO), UK Gambling Commission (UKGC), and the Malta Gaming Authority (MGA), among others. DraftKings emphasizes responsible gaming and provides resources to help players engage responsibly.

Notable Partnerships, Clients, and M&A Activity

DraftKings has engaged in strategic partnerships and acquisitions to expand its offerings and market reach. In 2020, it became a publicly traded company via a reverse merger with Diamond Eagle Acquisition Corp. and SBTech, which provided it with public market access and enhanced control over sportsbook technology. The acquisition of Golden Nugget Online Gaming in 2022 significantly strengthened its iGaming position. The 2024 acquisition of Jackpocket marked a strategic expansion into the digital lottery courier space. In October 2025, DraftKings acquired Railbird Technologies Inc. to further its prediction markets strategy. The company has also secured partnerships with major sports leagues, including being an official daily fantasy and sports betting partner of the NFL, NHL, PGA TOUR, UFC, and an official sports betting partner of the NBA and authorized gaming operator of MLB. In November 2025, ESPN announced an agreement to make DraftKings its official sports betting and odds provider. DraftKings also owns and operates VSiN (Vegas Sports Information Network), a multi-platform broadcast and content company, though it recently sold VSiN back to the Musburger family in July 2024.

Recent Strategic Direction

DraftKings' recent strategy includes a focus on enhancing profitability, improving structural sportsbook hold, and deepening cross-sell across its products. The company is actively investing in its owned technology platform to enable rapid innovation and differentiation, evident in its popular Same-Game Parlay (SGP) offerings. A significant strategic move is the development of a "Super App" branded DraftKings Sports & Casino, which aims to integrate Sportsbook, Predictions, Casino, and Lottery into a seamless experience with a single account and wallet, tailored to each jurisdiction. This initiative is expected to strengthen cross-sell, deepen customer engagement, and optimize unit economics. The expansion into prediction markets, particularly in states without regulated online wagering, is seen as a key driver for future growth, with analysts projecting significant revenue contributions by 2030. DraftKings is also increasingly deploying AI across its platform to drive efficiency and operating leverage.