stockrowWhat it does
DraftKings is a digital sports entertainment and gaming company that serves people who want to wager, play online casino games, enter fantasy sports contests or participate in other real-money activities. Jason D. Robins is its chief executive officer.
Its Sportsbook lets customers place bets online or at retail locations. DraftKings sets the odds for each bet and pays customers when they win. Its iGaming offering is an online casino where customers play games such as blackjack, roulette and slots against the house.
The company also operates daily fantasy sports contests, in which participants compete against one another for prize money. Its digital lottery courier service purchases official state lottery tickets on customers’ behalf through an app or website. DraftKings Predictions is a separate app and website where eligible customers can trade contracts tied to real-world outcomes, including sports and financial events.
DraftKings-branded products share account management and regulatory compliance services. Customers can use the same account and wallet across those products, and in many cases can move funds between them. The company distributes its products through apps and websites, including the Apple App Store and Google Play Store.
Availability depends on local rules and the licenses or approvals DraftKings holds. The company must maintain licenses and pay gaming taxes or a percentage of revenue where required to continue its gaming operations.
How it makes money
DraftKings had FY2025 revenue of $6.1 billion. A quarterly revenue total is not included here.
Sportsbook and iGaming are the main revenue sources. Sportsbook generated $3.8 billion in FY2025, while iGaming generated $1.8 billion. Sportsbook earnings begin with the odds DraftKings sets for each wager. Once a betting market is settled, the company subtracts payouts from settled wagers; the difference is its gross gaming revenue, also called the hold. Actual betting patterns and event outcomes can cause short-term swings in revenue and profitability.
In iGaming, DraftKings earns the house’s gross winnings as customers play casino games. Some games are developed internally and others are licensed. Suppliers of licensed games receive a share of gaming revenue generated by their respective games, while DraftKings retains more revenue from its own major casino games.
Daily fantasy sports revenue is the difference between contest entry fees and prizes paid to participants. The lottery courier business primarily earns service fees for processing and fulfilling orders, plus commissions from state lotteries on ticket sales and certain winning tickets. It does not recognize the face value of tickets or customer prizes as revenue. For prediction markets, DraftKings earns introducing fees from futures commission merchants when customer trades occur.
Revenue is reduced by incentives and promotions awarded to new and existing users, including free plays, deposit bonuses and loyalty rewards. Customer activity can recur across products, but revenue depends on engagement rather than a stated subscription. Users are typically most active in the fourth quarter, when the NFL and NBA seasons overlap.
| Product or service | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| Sportsbook | $3.8 billion | 62.9% | 31.8% |
| iGaming | $1.8 billion | 29.7% | 19.7% |
| Other | $422.8 million | 6.95% | 18.4% |
| Interest Income | $25.6 million | 0.42% | — |
Customers and how it sells
DraftKings serves individual users across sports betting, online casino, fantasy sports, lottery courier and prediction markets. In FY2025, it averaged 4.0 million monthly unique payers across its products. A monthly unique payer is a user with at least one real-money paid engagement during the month; a user who deposits money but does not participate is excluded.
The United States accounted for 97.4% of FY2025 revenue, or $5.9 billion. International revenue was $159.1 million. As of February 10, 2026, DraftKings operated online sports betting in 27 of the U.S. jurisdictions with legal online sports betting, as well as in Ontario. It also operated retail sportsbooks in several states and Puerto Rico.
As of the same date, its DraftKings-branded online casino was available in Connecticut, Michigan, New Jersey, Pennsylvania, West Virginia and Ontario. Daily fantasy sports was available in 44 U.S. states, the District of Columbia and certain Canadian provinces.
Customers access the products through websites and apps. The Apple App Store and Google Play Store are the main distribution channels, alongside traditional websites. DraftKings also cross-promotes products to existing users through email and push notifications.
| Region | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| United States | $5.9 billion | 97.4% | 26.8% |
| International | $159.1 million | 2.63% | 34.2% |
Suppliers and costs
DraftKings uses both proprietary and third-party software. For its online casino, it licenses content from suppliers including International Gaming Technology, Light & Wonder, Spin and Evolution. Under supplier-specific agreements, those providers receive a percentage of the gaming revenue generated by their games. DraftKings also builds games internally; its own major casino games produce higher retained revenue for the company.
Marketing, customer incentives, technology, user support and regulatory compliance are important areas of spending. DraftKings uses advertising channels including television, radio, social media, search and influencers. When entering a new jurisdiction, it invests heavily in acquiring and retaining customers and cross-selling products. Promotions also reduce reported revenue.
The company must pay gaming taxes or a percentage of revenue where required by its operating jurisdictions. Neither Apple nor Google takes a revenue share for distributing its products through their app stores.
DraftKings had $2.3 billion of non-cancelable purchase obligations to vendors, licensors and others as of December 31, 2025, including $527.4 million payable within twelve months. It also has leases for offices, data centers and vehicles.
- Revenue$6.1B
- Cost of revenue−$3.6B
- Research and development−$459.9M
- Selling, general and administrative−$2.1B
- Operating income−$15.8M
Competitive position
DraftKings competes for customers’ discretionary time and income in online gaming and entertainment, as well as prediction markets. Alternatives include other online gaming providers, television, movies, sporting events and in-person casinos. Its competitive disclosure does not name an individual competing company. Light & Wonder is named as a supplier of licensed casino content, rather than identified as a competitor.
DraftKings uses its brands, marketing and relationships with sports leagues, teams and media companies to build awareness and retain users. It is the official sportsbook and odds provider of ESPN. The company also uses data science to recommend betting markets and fantasy contests based on users’ past activity and, for sports betting, their location.
Its DraftKings-branded products share account management, identity verification and a wallet. Existing users therefore do not need separate credentials and payment methods for each product, and can often move funds between offerings. The technology can also be customized to the rules of individual jurisdictions.
Our reading: The shared account and wallet offer a meaningful convenience advantage for cross-selling, although they do not prevent customers from using rival services. Our reading: Brand exposure and licensed access can help DraftKings reach customers, but continuing marketing spending and competition from other entertainment limit their strength as barriers.
Growth opportunities
DraftKings’ priorities include investing in products, entering new jurisdictions, improving state-level economics and expanding its offerings. It expects monthly unique payers to grow as it attracts, retains and re-engages users in new and existing jurisdictions and broadens its products.
FY2025 revenue was $6.1 billion, compared with $4.8 billion in FY2024. Average monthly unique payers were 4.0 million in 2025, compared with 3.7 million in 2024. Average monthly revenue per payer was $125 in 2025. Revenue increased in 2025 primarily due to Sportsbook and iGaming performance, including customer engagement, acquisition and higher net revenue margin.
Sportsbook handle—the total amount of settled customer wagers—increased in 2025, primarily due to more monthly unique payers. iGaming revenue increased $296.8 million in 2025 compared with 2024, as its monthly unique payers and average revenue per payer increased.
DraftKings also launched its separate prediction markets app and website on December 19, 2025. It expects profitability to improve over time as revenue and gross profit expand in maturing states and it optimizes marketing expenses and fixed costs. It invests heavily in customer acquisition and retention when launching Sportsbook and iGaming in a new jurisdiction.
- $1.3BFY2021
- $2.2BFY2022
- $3.7BFY2023
- $4.8BFY2024
- $6.1BFY2025
- $6.5BFY2026 guidance
Structural risks
- Regulation and licensing: Authorities can revoke, suspend, condition or limit licenses, restrict access to prediction markets or impose fines. Changes in laws, interpretations or enforcement can affect DraftKings’ ability to offer products and increase compliance costs.
- Competition and customer spending: DraftKings faces significant competition from gaming providers and other entertainment. Existing or potential users may choose alternative activities for their discretionary time and income, while competitor consolidation could create larger rivals with more resources.
- Betting outcomes and promotions: Actual customer betting patterns and individual event outcomes can cause short-term volatility in Sportsbook revenue and profitability. Incentives and promotions also reduce the gross revenue attributable to its products.
- Prediction markets: Lawsuits challenge the CFTC’s exclusive jurisdiction over event contracts, particularly sports contracts. Depending on their resolution and regulatory action, DraftKings may be unable to continue offering certain contracts or may face litigation and regulatory actions.
- Debt and obligations: Long-term debt was approximately $1,835.6 million, net of issuance costs, as of December 31, 2025. Debt payments can reduce cash available for other purposes and limit financial flexibility.
- Data security: A breach or improper access to user or proprietary information could trigger legal claims, regulatory action, operational disruption and reputational damage.
Bottom line
Our reading
Our reading: DraftKings is principally a U.S. betting and online casino business whose revenue depends on repeat customer play, the economics of wagers and continued spending on acquisition and retention. Its shared technology supports cross-selling, but access to markets depends on regulation, while competition, betting outcomes and debt obligations remain material exposures.