DraftKings

DraftKings is a leading sports entertainment and gaming company, offering sports betting, daily fantasy sports (DFS), and online casino gaming across multiple U.S. states. Since its launch in 2011, the company has grown into one of the largest sportsbook operators in the U.S.

About

History of DraftKings

DraftKings was founded in 2011 in Watertown, Massachusetts, by Jason Robins, Matt Kalish, and Paul Liberman. The company launched its first daily fantasy sports (DFS) contests in April 2012, starting with Major League Baseball (MLB). Unlike traditional fantasy leagues, DraftKings allowed users to create new teams daily and compete for cash prizes.

By 2014, DraftKings had acquired DraftStreet and StarStreet, expanding its market share. It secured a strategic investment from MLB, marking the first time a U.S. sports league backed a DFS platform. That same year, the company attracted major investors, including The Raine Group, Redpoint Ventures, and GGV Capital.

As DraftKings grew, so did regulatory scrutiny. In 2015, several states, including New York and Nevada, debated whether DFS constituted skill-based gaming or gambling, leading to temporary bans. The company lobbied for legalization, successfully regaining access to key markets.

In 2018, the U.S. Supreme Court overturned PASPA, allowing states to regulate sports betting. DraftKings launched its first legal online sportsbook in New Jersey that same year. The move positioned it as one of the first online sportsbooks in the post-PASPA era.

To strengthen its betting infrastructure, DraftKings merged with Diamond Eagle Acquisition Corp. and SBTech in 2020. The $3.3 billion deal took the company public on NASDAQ (DKNG) and provided proprietary sports betting technology.

Today, DraftKings operates in 25 states and Washington, D.C., covering nearly half of the U.S. population.

DraftKings’ Offerings

DraftKings provides a comprehensive range of products:

  • Sports Betting: A full-service sportsbook offering moneyline bets, spreads, parlays, and live in-game betting.
  • Daily Fantasy Sports (DFS): Contests across major leagues like NFL, NBA, MLB, NHL, and more.
  • Online Casino: Online casino games, including slots, blackjack, and roulette.

In May 2024, DraftKings officially finalised the acquisition of Jackpocket, the leading digital lottery app in the US. Jackpocket allows users to order official lottery tickets via the mobile app, allowing DraftKings to expand its offering into the digital lottery segment.

In addition, DraftKings introduced a subscription service called DraftKings Sportsbook+ in early 2025, offering enhanced odds on accumulator (parlay) bets. Subscribers, paying US$20 per month, receive ‘stepped up’ bonuses depending on the number of events in the bet:

  • 2-leg parlays receive a 10% bonus.
  • 6-leg parlays get a 50% bonus.
  • 11-leg or more parlays enjoy a full 100% bonus, effectively doubling the payout.

DraftKings’ Business Model

DraftKings operates through two primary revenue streams:

  1. Direct-to-Consumer (B2C): This segment includes sports betting, DFS, and iGaming, all accessible through its website and mobile app. The platform is designed with real-time betting, personalized recommendations, and user-friendly interfaces to keep customers engaged.
  2. Business-to-Business (B2B): After acquiring SBTech in 2020, DraftKings also provides sports betting technology to other gaming operators, expanding beyond its direct consumer offerings.

Financial Performance and Market Position

DraftKings has seen steady financial growth, with key highlights including:

  • $4.8 billion in revenue in 2024, a 30% increase year-over-year.
  • First full-year adjusted profit of $181.3 million in 2024, after years of significant investments.
  • Q4 2024 revenue of $1.39 billion, up 13% from the previous year.
  • 2025 revenue forecast set at $6.45 billion, with an EBITDA target of up to $1 billion.

With a 32% share of the US sports betting market, DraftKings is currently the leading player alongside FanDuel.