DraftKings Inc. (DKNG)

DraftKings Inc. is a digital sports entertainment and gaming company offering online and retail sports betting (Sportsbook), online casino (iGaming), daily fantasy sports (DFS), digital lottery courier services, prediction markets, and other product offerings. Its mission centers on responsibly creating real-money games, betting, and event-contract trading experiences while investing in regulatory compliance, consumer protection, technology, and marketing to drive growth. Sportsbook and iGaming together generated 93% of revenue in both fiscal 2025 and 2024 (91% in 2023).

For fiscal years 2025, 2024, and 2023, the company reported revenue of $6,054.5 million, $4,767.7 million, and $3,665.4 million respectively; average monthly unique payers of 4.0 million, 3.7 million, and 2.7 million; average revenue per MUP of $125, $106, and $113; Sportsbook Handle of $53.6 billion, $48.1 billion, and $37.4 billion; and Sportsbook Net Revenue Margin of 7.1%, 6.0%, and 5.6%. DraftKings operates proprietary, scalable technology integrating account management, identity verification, and wallet functionality across product lines, using data science and machine learning to optimize user acquisition, retention, and monetization. Its DFS offering (including Pick6) generates revenue from the spread between entry fees and payouts, while its digital lottery courier business (via Jackpocket) earns fees and commissions from ticket sales without recognizing revenue from ticket face values.

In December 2025, the company launched DraftKings Predictions, a prediction markets platform regulated by the CFTC, acting as an introducing broker earning fees from customer trades; it also acquired Railbird Technologies Inc., which owns a CFTC-licensed designated contract market. The company relies heavily on strategic partnerships with sports leagues, teams, and media companies (including ESPN, NBC, and Amazon) to build brand awareness and user engagement, and distributes its offerings mainly via the Apple App Store, Google Play Store, and web platforms without revenue-sharing fees to those platforms. DraftKings’ intellectual property portfolio includes proprietary software, patents, trademarks, and trade secrets protected through legal and contractual measures.

The company operates in a highly regulated environment, holding numerous state, tribal, and international licenses for Sportsbook (live in 27 of 33 legalized online sports betting jurisdictions as of February 2026), iGaming (in states including New Jersey, Michigan, Pennsylvania, Connecticut, West Virginia, and Ontario), and DFS (available in 44 U.S. states, D.C., and parts of Canada). It is also subject to CFTC and NFA oversight for its prediction markets business through subsidiaries DraftKings Predictions and Railbird Exchange, LLC. The company faces continued regulatory, competitive, and macroeconomic uncertainties, including evolving gaming and prediction market laws, potential shifts in tax policy, and litigation risk over CFTC jurisdiction on sports-related event contracts.

With over 5,500 employees across thirteen countries, DraftKings emphasizes workforce engagement, professional development, and equitable compensation, alongside strong data privacy compliance under frameworks such as the CCPA, VCDPA, and GDPR. The company maintains a robust responsible gaming program, providing tools and mandatory training to promote safe user engagement. Overall, DraftKings continues to pursue growth through new market expansion, product diversification, operational efficiency, and strategic technology investment, aiming for improved profitability as its markets mature and marketing efficiency increases.