DraftKings Inc.
DraftKings Inc. is a U.S.-based digital sports entertainment and gaming company built around real-money wagering and interactive games. Its platform spans online and retail Sportsbook, iGaming, daily fantasy sports, digital lottery courier, and newly launched prediction markets, with revenue driven by user activity, betting volume, and trading/event-contract fees.
Fiscal year 2025 · change from previous year
Development 2020–2025
Business
Share of revenueOnline and retail sports betting on major leagues and events, including odds, wagers and related gaming activity.
Online casino games and related real-money gaming products offered in legalized jurisdictions.
Contest-based fantasy sports products where users enter paid contests and compete for prizes.
Jackpocket-branded lottery courier services that facilitate lottery ticket purchases in operating jurisdictions.
Event-contract trading products launched through DraftKings Predictions and related CFTC-regulated activities.
Cross-sell, loyalty, incentives and other smaller product and service revenue streams.
Products
Reported · share of revenue- Sportsbook62.9 %
- iGaming29.7 %
- Other7.0 %
- Product and Service Other Interest Income0.4 %
Source: 10-K FY2025, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.
Customers
DraftKings sells directly to consumers who want real-money sports wagering, casino-style gaming, fantasy contests and lottery access through a mobile-first experience. Its core users are sports fans and gaming customers in legalized U.S. jurisdictions, with acquisition and retention driven by promotions, personalized offers, and cross-product engagement. The company also serves eligible customers in prediction markets where regulated event-contract trading is permitted.
Users who place online or retail sports bets and are attracted by live odds, promotions and major league coverage.
Players who buy online casino-style games for entertainment and repeat play in legalized states.
Fantasy sports customers entering paid contests, often cross-sold from sportsbook and casino products.
Lottery players who use the courier app for draw-based and scratch lottery access in operating jurisdictions.
Eligible users trading event contracts through DraftKings Predictions and related regulated entities.
Strategy
DraftKings is focused on expanding its addressable market by entering newly legalized jurisdictions and deepening engagement across sportsbook, iGaming, DFS and lottery products. It is also investing in product innovation, data science, marketing efficiency and regulated prediction markets to improve monetization, retention and cross-sell while maintaining compliance and consumer protection.
Growth depends on entering new states as sports betting and iGaming are legalized.
The company increases lifetime value by moving users across sportsbook, iGaming, DFS and Jackpocket.
Better product features and recommendation engines improve engagement and reduce churn.
CFTC-regulated event contracts create a new product category with incremental revenue potential.
Geography
2025DraftKings is primarily a U.S. business, and its growth depends on state-by-state legalization and licensing of online sports betting and iGaming. As of the filing, it operates in 27 of the 33 U.S. jurisdictions that have legalized online sports betting, while iGaming remains limited to a smaller set of states. Geography matters because taxes, licensing, retail-partner requirements and product legality vary materially by state and directly affect margins and expansion speed.
Share of the revenue the company reports by geography.
Risks
DraftKings faces heavy regulatory dependence because its growth is tied to state legalization, licensing and tax regimes, while prediction markets add federal CFTC oversight. The business is also exposed to intense competition, promotional spending, consumer discretionary weakness, fraud/cybersecurity incidents and seasonal swings tied to the sports calendar.
- Regulatory and legalization riskImpact: HighLikelihood: Medium
Revenue growth depends on sports betting and iGaming being legalized and permitted in more jurisdictions.
Exposure: U.S. state-by-state market access and CFTC-regulated prediction markets
- Competitive intensityImpact: HighLikelihood: Medium
Users can switch to rival sportsbooks, casinos or other entertainment options, forcing ongoing promotions and marketing.
Exposure - Cybersecurity and account fraudImpact: HighLikelihood: Medium
Credential stuffing or other attacks can disrupt operations, trigger liability and damage brand trust.
Exposure - Consumer spending sensitivityImpact: MediumLikelihood: Medium
Gaming and betting are discretionary, so weaker consumer spending can reduce engagement and deposits.
Exposure: Paid user activity and promotional response
- SeasonalityImpact: MediumLikelihood: Low
Activity peaks in the fourth quarter when NFL and NBA seasons overlap, making quarterly comparisons uneven.
Exposure
Accounting
Judgemental itemsRevenue timing depends on when bets are settled, contests are entered or trades occur.
Impact: Can shift revenue between periods and affect quarterly comparability
Gross revenue is reduced by free plays, bonuses, rebates and loyalty rewards.
Impact: Affects reported net revenue and margin trends
State taxes and payment processing fees rise with activity and vary by jurisdiction.
Impact: Directly affects cost of revenue and operating leverage
Acquisitions such as Jackpocket and Railbird create assets that must be amortized or tested for impairment.
Impact: Can create non-cash charges and affect earnings
Sports calendar timing drives user activity, especially in the fourth quarter.
Impact: Makes revenue, hold rates and marketing efficiency uneven across quarters
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Last updated: 24/09/2026