DRAFTKINGS INC., 10-Q filed on 5/8/2026
Quarterly Report
v3.26.1
Cover - shares
 3 Months Ended
Mar. 31, 2026
May 06, 2026
Document Information [Line Items]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Mar. 31, 2026  
Document Transition Report false  
Entity File Number 001-41379  
Entity Registrant Name DRAFTKINGS INC.  
Entity Incorporation, State or Country Code NV  
Entity Tax Identification Number 87-2764212  
Entity Address, Address Line One 222 Berkeley Street  
Entity Address, Address Line Two 5th Floor  
Entity Address, City or Town Boston  
Entity Address, State or Province MA  
Entity Address, Postal Zip Code 02116  
City Area Code 617  
Local Phone Number 986-6744  
Title of 12(b) Security Class A Common Stock, $0.0001 par value  
Trading Symbol DKNG  
Security Exchange Name NASDAQ  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Central Index Key 0001883685  
Amendment Flag false  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2026  
Document Fiscal Period Focus Q1  
Class A Common Stock    
Document Information [Line Items]    
Entity Common Stock, Shares Outstanding   496,128,817
Class B Common Stock    
Document Information [Line Items]    
Entity Common Stock, Shares Outstanding   393,013,951
v3.26.1
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Mar. 31, 2026
Dec. 31, 2025
Current assets:    
Cash and cash equivalents $ 999,404 $ 1,127,545
Restricted cash 8,746 7,601
Cash reserved for users 378,670 469,449
Accounts receivable 86,119 105,577
Prepaid expenses and other current assets 104,790 104,837
Total current assets 1,577,729 1,815,009
Property and equipment, net 53,164 51,081
Intangible assets, net 868,061 889,201
Goodwill 1,597,647 1,597,647
Operating lease right-of-use assets 78,428 49,810
Equity method investments 26,150 18,938
Deposits and other non-current assets 106,353 109,098
Total assets 4,307,532 4,530,784
Current liabilities:    
Accounts payable and accrued expenses 703,994 785,441
Liabilities to users 811,630 935,001
Operating lease liabilities, current portion 10,942 9,795
Other current liabilities 21,858 25,234
Total current liabilities 1,548,424 1,755,471
Convertible notes, net of issuance costs 1,259,755 1,259,096
Term B Loan, net of issuance costs 575,556 576,544
Operating lease liabilities 71,597 44,391
Long-term income tax liabilities 92,903 91,618
Other long-term liabilities 154,249 172,203
Total liabilities 3,702,484 3,899,323
Commitments and contingent liabilities (Notes 5 and 13)
Stockholders’ equity:    
Treasury stock, at cost; 42,533 and 38,243 shares as of March 31, 2026 and December 31, 2025, respectively (1,515,376) (1,392,433)
Additional paid-in capital 8,500,292 8,424,833
Accumulated deficit (6,416,448) (6,437,518)
Accumulated other comprehensive income 36,488 36,488
Total stockholders’ equity 605,048 631,461
Total liabilities and stockholders’ equity 4,307,532 4,530,784
Class A Common Stock    
Stockholders’ equity:    
Common stock 53 52
Class B Common Stock    
Stockholders’ equity:    
Common stock $ 39 $ 39
v3.26.1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares
shares in Thousands
Mar. 31, 2026
Dec. 31, 2025
Treasury stock, shares (in shares) 42,533 38,243
Class A Common Stock    
Common shares, par value (in dollars per share) $ 0.0001 $ 0.0001
Common shares, shares authorized (in shares) 900,000 900,000
Common shares, shares issued (in shares) 538,297 533,296
Common shares, shares outstanding (in shares) 495,764 495,053
Class B Common Stock    
Common shares, par value (in dollars per share) $ 0.0001 $ 0.0001
Common shares, shares authorized (in shares) 900,000 900,000
Common shares, shares issued (in shares) 393,014 393,014
Common shares, shares outstanding (in shares) 393,014 393,014
v3.26.1
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Income Statement [Abstract]    
Revenue $ 1,646,076 $ 1,408,806
Cost of revenue 949,385 843,803
Sales and marketing 401,734 343,680
Product and technology 123,176 103,260
General and administrative 165,934 164,394
Income (loss) from operations 5,847 (46,331)
Other income (expense):    
Interest (income) expense, net (5,739) 4,395
Gain (loss) on remeasurement of warrant liabilities 0 2,495
Other gain (loss), net 22,814 22
Income (loss) before income tax and equity method investments 22,922 (39,419)
Income tax provision (benefit) 6,369 (5,600)
(Gain) loss from equity method investments (4,517) 45
Net income (loss) attributable to common stockholders $ 21,070 $ (33,864)
Earnings (loss) per share attributable to common stockholders:    
Basic (in dollars per share) $ 0.04 $ (0.07)
Diluted (in dollars per share) $ 0.03 $ (0.07)
v3.26.1
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($)
shares in Thousands, $ in Thousands
Total
Class A Common Stock
Class B Common Stock
Common Stock
Class A Common Stock
Common Stock
Class B Common Stock
Additional Paid in Capital
Accumulated Deficit
Accumulated  Other Comprehensive Income
Treasury Stock Amount
Beginning balance (in shares) at Dec. 31, 2024       489,071 393,014        
Beginning balance at Dec. 31, 2024 $ 1,010,626     $ 48 $ 39 $ 7,978,425 $ (6,441,228) $ 36,488 $ (563,146)
Increase (Decrease) in Stockholders' Equity                  
Exercise of stock options (in shares)       1,268          
Exercise of stock options 3,396         3,396      
Stock-based compensation 100,380         100,380      
Exercise of warrants (in shares)       182          
Exercise of warrants 8,973         8,973      
Purchase of treasury stock for RSU withholding (in shares)       (1,519)          
Purchase of treasury stock for RSU withholding $ (74,318)               (74,318)
Restricted stock unit vesting (in shares)       11,001          
Purchase of treasury stock under Stock Repurchase Program (in shares) (3,700)     (3,664)          
Purchase of treasury stock under Stock Repurchase Program $ (142,278)               (142,278)
Net income (loss) (33,864)           (33,864)    
Ending balance (in shares) at Mar. 31, 2025       496,339 393,014        
Ending balance at Mar. 31, 2025 872,915     $ 48 $ 39 8,091,174 (6,475,092) 36,488 (779,742)
Beginning balance (in shares) at Dec. 31, 2025   495,053 393,014 495,053 393,014        
Beginning balance at Dec. 31, 2025 $ 631,461     $ 52 $ 39 8,424,833 (6,437,518) 36,488 (1,392,433)
Increase (Decrease) in Stockholders' Equity                  
Exercise of stock options (in shares) 1,773     1,773          
Exercise of stock options $ 3,315         3,315      
Stock-based compensation 72,144         72,144      
Purchase of treasury stock for RSU withholding (in shares)       (1,002)          
Purchase of treasury stock for RSU withholding (24,303)               (24,303)
Restricted stock unit vesting (in shares)       3,228          
Restricted stock unit vesting $ 1     $ 1          
Purchase of treasury stock under Stock Repurchase Program (in shares) (3,300)     (3,288)          
Purchase of treasury stock under Stock Repurchase Program $ (98,640)               (98,640)
Net income (loss) 21,070           21,070    
Ending balance (in shares) at Mar. 31, 2026   495,764 393,014 495,764 393,014        
Ending balance at Mar. 31, 2026 $ 605,048     $ 53 $ 39 $ 8,500,292 $ (6,416,448) $ 36,488 $ (1,515,376)
v3.26.1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Cash Flows from Operating Activities:    
Net income (loss) attributable to common stockholders $ 21,070 $ (33,864)
Adjustments to reconcile net income (loss) to net cash flows provided by (used in) operating activities:    
Depreciation and amortization 71,661 70,116
Non-cash interest (income) expense, net 1,303 276
Stock-based compensation 65,215 78,846
(Gain) loss on remeasurement of warrant liabilities 0 (2,495)
(Gain) loss from equity method investment (4,517) 45
Deferred income taxes (215) 826
Other non-cash (gain) loss, net (22,656) 2,499
Change in operating assets and liabilities, net of effect of acquisitions:    
Accounts receivable 19,458 (8,738)
Prepaid expenses and other current assets 46 (43,514)
Deposits and other non-current assets 1,143 363
Accounts payable and accrued expenses (80,999) (68,950)
Liabilities to users (123,371) (116,397)
Long-term income tax liability 1,285 (932)
Other long-term liabilities 2,140 2,903
Net cash flows provided by (used in) operating activities (48,437) (119,016)
Cash Flows from Investing Activities:    
Purchases of property and equipment (7,085) (2,647)
Cash paid for internally developed software costs (37,070) (31,248)
Cash paid for gaming market access and licenses (1,060) (1,629)
Other investing activities (2,995) (3,495)
Net cash flows provided by (used in) investing activities (48,210) (39,019)
Cash Flows from Financing Activities:    
Proceeds from Term B Loan, net 0 588,116
Repayment of Term B Loan principal (1,500) 0
Purchase of treasury stock for RSU withholding (24,303) (74,318)
Purchase of treasury stock under Stock Repurchase Program (98,640) (142,278)
Proceeds from exercise of stock options 3,315 3,396
Other financing activities 0 (2,093)
Net cash flows provided by (used in) financing activities (121,128) 372,823
Net increase (decrease) in cash and cash equivalents, restricted cash, and cash reserved for users (217,775) 214,788
Cash and cash equivalents, restricted cash, and cash reserved for users at the beginning of period 1,604,595 1,330,193
Cash and cash equivalents, restricted cash, and cash reserved for users at the end of period 1,386,820 1,544,981
Disclosure of cash and cash equivalents, restricted cash, and cash reserved for users    
Cash and cash equivalents 999,404 1,119,740
Restricted cash 8,746 16,752
Cash reserved for users 378,670 408,489
Cash and cash equivalents, restricted cash, and cash reserved for users at the end of period 1,386,820 1,544,981
Supplemental Disclosure of Noncash Investing and Financing Activities:    
Decrease of warrant liabilities from cashless exercise of warrants 0 8,973
Stock-based compensation capitalized to internally developed software costs 7,087 6,184
Supplemental Disclosure of Cash Activities:    
(Decrease) increase in cash reserved for users (90,779) (116,918)
Cash paid for interest 8,224 3,139
Cash paid for income taxes, net of refunds $ 412 $ 1,850
v3.26.1
Description of Business
 3 Months Ended
Mar. 31, 2026
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Description of Business Description of Business
We are a digital sports and gaming company. We provide users with online and retail sports betting (together, “Sportsbook”), online casino (“iGaming”), daily fantasy sports (“Fantasy”), digital lottery courier (“Lottery”), prediction markets (“Prediction Markets”) and other offerings.
As of March 31, 2026, 39 U.S. states, the District of Columbia and Puerto Rico have some form of authorized sports betting. Of those 41 jurisdictions, 33 have legalized online sports betting. All 33 jurisdictions are live, and DraftKings operates in 29 of them. As of March 31, 2026, the U.S. jurisdictions with statutes legalizing iGaming are Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island and West Virginia.
As of March 31, 2026, we operate our Sportsbook offering in Arizona, Arkansas, Colorado, Connecticut, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Missouri, New Hampshire, New Jersey, New York, North Carolina, Ohio, Oregon, Pennsylvania, Tennessee, Vermont, Virginia, Washington, D.C., West Virginia, Wyoming, Puerto Rico and Ontario, Canada, and we operate retail sportsbooks in Arizona, Colorado, Connecticut, Illinois, Iowa, Kansas, Kentucky, Louisiana, Michigan, Mississippi, New Hampshire, New Jersey, Washington, Wisconsin and Puerto Rico. As of March 31, 2026, we offer our iGaming offering in Connecticut, Michigan, New Jersey, Pennsylvania, West Virginia and Ontario, Canada. We also have arrangements in place with land-based casinos to expand operations into additional states upon the passing of relevant legislation, the issuance of related regulations and the receipt of required licenses.
v3.26.1
Summary of Significant Accounting Policies and Practices
 3 Months Ended
Mar. 31, 2026
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies and Practices Summary of Significant Accounting Policies and Practices
Basis of Presentation and Principles of Consolidation
 These unaudited condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) and accounting principles generally accepted in the United States (“U.S. GAAP”) for interim reporting. As such, certain notes or other information that are normally required by U.S. GAAP have been omitted if they substantially duplicate the disclosures contained in the Company’s annual audited consolidated financial statements. Accordingly, these unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited financial statements and related notes as of and for the fiscal year ended December 31, 2025, which are included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025, as filed with the SEC on February 13, 2026 (the “2025 Annual Report”). These condensed consolidated financial statements are unaudited; however, in the opinion of management, they include all normal and recurring adjustments necessary for a fair presentation of the Company’s condensed consolidated financial statements for the periods presented. Results of operations reported for interim periods are not necessarily indicative of results for the entire year, due to seasonal fluctuations in the Company’s revenue as a result of the timing of various sports seasons, sporting events, and other factors.
All intercompany accounts and transactions are eliminated upon consolidation. Certain amounts, which are not material, in the prior year’s consolidated financial statements have been reclassified to conform to the current year’s presentation.
Recently Issued Accounting Pronouncements Not Yet Adopted

In November 2024, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2024-03, Income Statement–Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (“ASU 2024-03”), which requires disaggregated disclosure of income statement expenses. ASU 2024-03 does not change the expense captions an entity presents on the face of the income statement; rather, it requires disaggregation of certain expense captions into specified categories in disclosures within the footnotes to the financial statements. ASU 2024-03 is effective for public business entities for annual periods beginning after December 15, 2026, with early adoption permitted. We are currently evaluating the impact of this standard on our disclosure of income statement expenses.
In September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software (“ASU 2025-06”). ASU 2025-06 changes the accounting for internal-use software under Accounting Standards Codification (“ASC”) 350-40. ASU 2025-06 clarifies when to begin capitalizing costs. ASU 2025-06 is effective for interim and annual periods beginning after December 15, 2027, with early adoption permitted. We are currently evaluating the impact of this standard and do not expect this standard to have a material impact on our consolidated financial statements.
In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements (“ASU 2025-11”). ASU 2025-11 clarifies the applicability of interim reporting guidance and reorganizes and clarifies interim disclosure requirements under ASC 270, including the addition of a disclosure principle requiring disclosure of material events occurring since the most recent annual reporting period. ASU 2025-11 is effective for interim reporting periods within annual periods beginning after December 15, 2027, with early adoption permitted. We are currently evaluating the impact of this standard and do not expect this standard to have a material impact on our consolidated financial statements.
In December 2025, the FASB issued ASU 2025-12, Codification Improvements (“ASU 2025-12”). ASU 2025-12 makes targeted amendments to various topics within the Accounting Standards Codification intended to clarify existing guidance and correct minor inconsistencies. ASU 2025-12 is effective for interim and annual reporting periods beginning after December 15, 2026, with early adoption permitted. Certain amendments require retrospective application. We are currently evaluating the impact of this standard and do not expect this standard to have a material impact on our consolidated financial statements.
v3.26.1
Business Combinations
 3 Months Ended
Mar. 31, 2026
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]  
Business Combinations Business Combinations
2025 Business Combinations
Acquisition of Railbird Technologies Inc. (“Railbird”)
On October 21, 2025 (the “Railbird Acquisition Date”), the Company entered into a definitive agreement (the “Railbird Merger Agreement”) to acquire Railbird and its wholly owned subsidiary Railbird Exchange, LLC, a federally licensed exchange designated by the Commodity Futures Trading Commission (the “Railbird Transaction”). The acquisition provides a foundation for the Company’s entrance into Prediction Markets through regulated event contracts.
Under the terms of the Railbird Merger Agreement and subject to certain exclusions contained therein, Railbird equityholders received closing consideration of approximately $18.3 million of cash consideration and approximately $28.7 million of equity consideration on the Railbird Acquisition Date, excluding contingent consideration. The present value of the contingent consideration of $37.8 million at the Railbird Acquisition Date, which is payable upon, and subject to, the achievement of certain performance targets, is included in Other long-term liabilities on the consolidated balance sheet.
Operating results for Railbird on and after the Railbird Acquisition Date are included in the Company’s condensed consolidated statements of operations for the three months ended March 31, 2026. The amount of revenue and earnings attributable to the Railbird business from the Railbird Acquisition Date through March 31, 2026, which is included within revenue and loss attributable to common stockholders in the Company’s condensed consolidated statements of operations, is not material. Pro forma financial information for the acquisition has not been presented because the impact of this acquisition was immaterial to our consolidated financial statements.
Preliminary Purchase Price Accounting for the Railbird Transaction

On the Railbird Acquisition Date, the Company acquired 100% of the equity interests of Railbird pursuant to the Railbird Merger Agreement. The following is a summary of the consideration issued or paid on the Railbird Acquisition Date:

Cash consideration$18,296 
Equity consideration (1)
28,708 
Contingent consideration (2)
37,785 
Total consideration$84,789 

(1)Includes the issuance of approximately 0.9 million shares of DraftKings Inc.’s Class A common stock issued at $33.62 per share.
(2)The Company recorded a fair value estimate of the contingent consideration, as disclosed in “Note 6 – Fair Value Measurements”. Contingent payments have a maximum value of up to $200 million, 47.5% of which will be contingent consideration and 52.5% of which will be recorded as compensation under ASC 805. The payments will be settled, at the Company’s option, in shares of the Company’s Class A common stock or in a combination of shares of the Company’s Class A common stock and cash; provided that, for each Railbird equityholder that is an accredited investor, shares of the Company’s Class A common stock will represent at least 70% of the contingent consideration such equityholder receives. The Company’s Class A common stock to be issued as contingent payment will be valued on the basis of a 30-day volume-weighted average price of the Company’s Class A common stock determined at or around the issuance thereof based on certain post-closing performance metrics.

The purchase price allocation for Railbird set forth herein is preliminary and subject to change within the measurement period, which will not extend beyond one year from the Railbird Acquisition Date. Measurement period adjustments will be recognized in the reporting period in which the adjustment amounts are determined and may include adjustments pertaining to intangible assets acquired and tax liabilities assumed, including the calculation of deferred tax assets and liabilities. Any such adjustments may be material.
The following table summarizes the preliminary fair value of the assets acquired and liabilities assumed in connection with the consummation of the Railbird Transaction on the Railbird Acquisition Date. The values set forth below are preliminary, pending finalization of valuation analyses:
Assets acquired:
Cash and cash equivalents$181 
Restricted cash1,734 
Intangible assets58,090 
Deposits and other non-current assets6 
Total identifiable assets acquired60,011 
Liabilities assumed:
Accounts payable and accrued expenses52 
Other long-term liabilities15,365 
Total liabilities assumed15,417 
Net assets acquired (a)44,594 
Purchase consideration (b)$84,789 
Goodwill (b) – (a)$40,195 
Goodwill represents the excess of the gross consideration transferred over the difference between the fair value of the underlying net assets acquired and the underlying liabilities assumed. Qualitative factors that contribute to the recognition of goodwill include certain intangible assets that are not recognized as separate identifiable intangible assets apart from goodwill. Intangible assets not recognized apart from goodwill consist primarily of benefits from securing buyer-specific synergies that increase revenue and profits and are not otherwise available to a market participant, as well as acquiring a talented workforce and cost savings opportunities. Goodwill recognized is not deductible for tax purposes. Goodwill associated with the Railbird Transaction is assigned as of the Railbird Acquisition Date to the Company’s prediction markets reporting unit which was established in 2025 as a result of the launch of our new Prediction Markets offering.
The Company recorded an intangible asset for an operating license of $58.1 million that will be amortized over four years. We valued the operating license by using the income approach, specifically the with-and-without method, which isolates the cash flows attributable to the asset. The process for estimating the fair values of identifiable intangible assets requires the use of significant estimates and assumptions, including revenue growth rates and discount rates. We amortize definite-lived assets based on the pattern over which we expect to receive the economic benefit from these assets.
Transaction Costs
For the year ended December 31, 2025, the Company incurred $5.5 million in advisory, legal, accounting and management fees in connection with the Railbird Transaction, which were included in general and administrative expenses on the Company’s consolidated statements of operations. We did not incur any such costs in the three months ended March 31, 2026 or March 31, 2025.
v3.26.1
Intangible Assets
 3 Months Ended
Mar. 31, 2026
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets Intangible Assets
As of March 31, 2026, intangible assets, net consists of the following:
Weighted-Average Remaining Amortization PeriodGross Carrying AmountAccumulated AmortizationNet
Amortized intangible assets:
Developed technology3.3 years$586,410 $(358,707)$227,703 
Internally developed software2.3 years514,011 (274,326)239,685 
Gaming market access and licenses6.5 years288,585 (100,611)187,974 
Customer relationships5.3 years344,000 (154,285)189,715 
Trademarks, tradenames and other4.9 years43,420 (20,436)22,984 
Total$1,776,426 $(908,365)$868,061 
As of December 31, 2025, intangible assets, net consists of the following:
Weighted-Average Remaining Amortization PeriodGross Carrying AmountAccumulated AmortizationNet
Amortized intangible assets:
Developed technology3.4 years$586,409 $(338,358)$248,051 
Internally developed software2.3 years475,814 (254,285)221,529 
Gaming market access and licenses 6.7 years287,524 (91,575)195,949 
Customer relationships5.5 years344,000 (144,326)199,674 
Trademarks, tradenames and other5.1 years43,120 (19,122)23,998 
Total$1,736,867 $(847,666)$889,201 

Amortization expense was $66.7 million and $65.7 million for the three months ended March 31, 2026 and 2025, respectively.
v3.26.1
Current and Long-term Liabilities
 3 Months Ended
Mar. 31, 2026
Current and Long-term Liabilities  
Current and Long-term Liabilities Current and Long-term Liabilities
Credit Agreement
On November 7, 2024, the Company entered into a credit agreement (as amended, the “Credit Agreement”) with various financial institutions, as lenders, and Morgan Stanley Senior Funding, Inc., as administrative agent and collateral agent, providing for a senior secured revolving credit facility of up to $500.0 million (the “Revolving Credit Facility”). The Revolving Credit Facility has a maturity date of November 7, 2029.
Revolving loans under the Revolving Credit Facility bear interest at the Company’s election at either (i) Term SOFR (as defined in the Credit Agreement), plus an applicable margin ranging from 1.75% to 2.25% depending on the Company’s Net First Lien Leverage Ratio (as defined in the Credit Agreement) or (ii) a base rate that is equal to the greatest of (a) the federal funds rate plus 0.50%, (b) the prime rate and (c) Term SOFR for a one month interest period plus 1.00%, in each case plus an additional applicable margin ranging from 0.75% to 1.25% depending on the Company’s Net First Lien Leverage Ratio. In addition, the Company is required to pay a commitment fee quarterly in arrear ranging from 0.25% to 0.375% per annum of the unused portion of the Revolving Credit Facility depending on the Company’s Net First Lien Leverage Ratio. As of March 31, 2026, the Credit Agreement provided a Revolving Credit Facility of up to $500.0 million, and there was no principal outstanding thereunder. As of March 31, 2026, $11.9 million in letters of credit were issued under the Revolving Credit Facility, with $488.1 million available for borrowing.
On March 4, 2025, the Company entered into a first amendment to the Credit Agreement, providing for a new class of incremental term loans under the Credit Agreement in an aggregate principal amount of $600.0 million (the “Term B Facility” and, such term loans, the “Term B Loan”). The Term B Facility matures on March 4, 2032, and all unpaid borrowings, together with accrued and unpaid interest thereon, are repayable on such date (unless extended in accordance with the terms of the Credit Agreement). In addition, 1.00% of the aggregate outstanding principal amount of the Term B Loan is payable per annum in quarterly installments. In connection with the borrowing of the Term B Loan, the Company incurred $11.9 million of lender fees and $3.1 million of debt financing costs, which are being amortized through the maturity date. The amortization of debt issuance costs was $0.5 million and $0.1 million for the three months ended March 31, 2026 and 2025, respectively, which is included in Interest income (expense), net on the Company’s condensed consolidated statements of operations.
The Term B Loan under the Term B Facility bears interest at the Company’s election at either (x) in the case of Term SOFR Loans, Term SOFR plus an applicable margin of 1.75% per annum, or (y) in the case of ABR Term Loans, ABR plus an applicable margin of 0.75% per annum (with each of the capitalized terms used in clauses (x) and (y) as defined in the Credit Agreement). As of March 31, 2026, the aggregate principal amount of Term B Loan outstanding was $594.0 million which bore interest at a weighted-average rate of 5.42% per annum. As of March 31, 2026, the fair value of the Term B Loan approximates the carrying value, which was calculated using quoted market prices for similar debt instruments and other observable market inputs, which is a Level 2 fair value measurement.
The performance of the Company’s obligations under the Credit Agreement is secured by a first-priority security interest on substantially all of its assets. The Credit Agreement contains customary representations and warranties and affirmative and negative covenants, including dividend restrictions, a public corporate credit rating requirement for so long as any Term B Loan are outstanding, and, with respect to the Revolving Credit Facility only, a financial covenant that the Company is required to maintain a Net First Lien Leverage Ratio not to exceed 4.50:1.00, which is tested only if the aggregate amount of (i) revolving loans outstanding and (ii) letters of credit outstanding under the Revolving Credit Facility in excess of a specified threshold (unless cash collateralized) is in excess of 40% of the total commitments under the Revolving Credit Facility. As of March 31, 2026, the Company was not required to test the covenant as the aggregate amount of the revolving loans outstanding and the letters of credit outstanding did not exceed 40% of the total commitments under the Revolving Credit Facility.
Convertible Notes and Capped Call Transactions
In March 2021, DraftKings Holdings Inc. (formerly DraftKings Inc.), a Nevada corporation (“Old DraftKings”), issued zero-coupon convertible senior notes in an aggregate principal amount of $1,265.0 million, which includes proceeds from the full exercise of the over-allotment option (collectively, the “Convertible Notes”). The Convertible Notes will mature on March 15, 2028 (the “Notes Maturity Date”), subject to earlier conversion, redemption or repurchase. In connection with the issuance of the Convertible Notes, Old DraftKings incurred $17.0 million of lender fees and $1.7 million of debt financing costs, which are being amortized through the Notes Maturity Date. The amortization of debt issuance costs was $0.7 million and $0.7 million for the three months ended March 31, 2026 and 2025, respectively, which is included in Interest income (expense), net on the Company’s condensed consolidated statements of operations. The Convertible Notes represent senior unsecured obligations of Old DraftKings, which are being amortized through the Notes Maturity Date.
The Convertible Notes are convertible at an initial conversion rate of 10.543 shares of DraftKings Inc.’s Class A common stock per $1,000 principal amount of Convertible Notes, which is equivalent to an initial conversion price of approximately $94.85 per share of DraftKings Inc.’s Class A common stock. The conversion rate is subject to adjustment upon the occurrence of certain specified events and includes a make-whole adjustment upon early conversion in connection with a make-whole fundamental change (as defined in the indenture governing the Convertible Notes). Since the issuance of the Convertible Notes, there have been no changes to the initial conversion price.
Prior to September 15, 2027, the Convertible Notes will be convertible by the holder only upon satisfaction of certain conditions and during certain periods, and thereafter, at any time until the close of business on the second scheduled trading day immediately preceding the Notes Maturity Date. Old DraftKings will satisfy any conversion election by paying or delivering, as the case may be, cash, shares of DraftKings Inc.’s Class A common stock or a combination of cash and shares of DraftKings Inc.’s Class A common stock. As of March 31, 2026, no conditions were met to allow for the conversion of the Convertible Notes by any holder.
In connection with the pricing of the Convertible Notes and the exercise of the over-allotment option to purchase additional notes, Old DraftKings entered into a privately negotiated capped call transaction (“Capped Call Transactions”). The Capped Call Transactions have a strike price of $94.85 per share, subject to certain adjustments, which corresponds to the initial conversion price of the Convertible Notes. The Capped Call Transactions have an initial cap price of $135.50 per share, subject to certain adjustments. The Capped Call Transactions are expected generally to reduce potential dilution to DraftKings Inc.’s
Class A common stock upon any conversion of Convertible Notes. As the transaction qualifies for equity classification, the net cost of $124.0 million incurred in connection with the Capped Call Transactions was recorded as a reduction to additional paid-in capital on the Company’s condensed consolidated balance sheets.
As of March 31, 2026, the Company’s convertible debt balance was $1,259.8 million, net of unamortized debt issuance costs of $5.2 million. Although recorded at amortized cost on the Company’s condensed consolidated balance sheets, the estimated fair value of the Convertible Notes was $1,140.1 million and $1,158.7 million as of March 31, 2026 and December 31, 2025, respectively, which was calculated using the estimated or actual bids and offers of the Convertible Notes in an over-the-counter market on the last business day of the period, which is a Level 1 fair value measurement.
As of March 31, 2026, the future principal payments for the Term B Loan and Convertible Notes were as follows:
Years Ending December 31,
April 1, 2026 to December 31, 2026$4,444 
20275,874 
20281,270,815 
20295,757 
20305,700 
Thereafter566,432 
Total$1,859,022 
Indirect Taxes
Taxation of e-commerce is becoming more prevalent and could negatively affect the Company’s business as it primarily pertains to Fantasy and its contestants. The ultimate impact of indirect taxes on the Company’s business is uncertain, as is the period required to resolve this uncertainty. The Company’s estimated contingent liability for indirect taxes represents the Company’s best estimate of tax liability in jurisdictions in which the Company believes taxation is probable. The Company frequently reevaluates its tax positions for appropriateness.
Indirect tax statutes and regulations are complex and subject to differences in application and interpretation. Tax authorities may impose indirect taxes on Internet-delivered activities based on statutes and regulations which, in some cases, were established prior to the advent of the Internet and do not apply with certainty to the Company’s business. The Company’s estimated contingent liability for indirect taxes may be materially impacted by future audit results, litigation and settlements, should they occur. The Company’s activities by jurisdiction may vary from period to period, which could result in differences in the applicability of indirect taxes from period to period.
As of March 31, 2026 and December 31, 2025, the Company’s estimated contingent liability for indirect taxes was $92.1 million and $90.1 million, respectively. The estimated contingent liability for indirect taxes is recorded within other long-term liabilities on the condensed consolidated balance sheets and general and administrative expenses on the condensed consolidated statements of operations.
Warrant Liabilities
As part of the initial public offering of Diamond Eagle Acquisition Corp. (“DEAC”) on May 14, 2019 (the “IPO”), DEAC issued 13.3 million warrants each of which entitled the holder to purchase one share of DraftKings Inc.’s Class A common stock at an exercise price of $11.50 per share (the “Public Warrants”). Simultaneously with the closing of the IPO, DEAC completed the private sale of 6.3 million warrants to DEAC’s sponsor (the “Private Warrants”), each of which entitled the holder to purchase one share of DraftKings Inc.’s Class A common stock at an exercise price of $11.50 per share. As of March 31, 2026, there were no Public Warrants or Private Warrants outstanding. In connection with the acquisition of Golden Nugget Online Gaming, Inc. (the “GNOG Transaction”), on May 5, 2022 (the “GNOG Closing Date”), Old DraftKings entered into an assignment and assumption agreement (the “Old DraftKings Warrant Assignment Agreement”) with DraftKings Inc., Computershare Trust Company, N.A. and Computershare Inc. (together, “Computershare”), pursuant to which Old DraftKings assigned to DraftKings Inc. all of its rights, interests and obligations under the warrant agreement, dated as of May 10, 2019 (the “Old DraftKings Warrant Agreement”), by and between DEAC and Continental Stock Transfer & Trust Company, as warrant agent, as assumed by Old DraftKings and assigned to Computershare by that certain assignment and assumption agreement, dated as of April 23, 2020, governing Old DraftKings’ outstanding Private Warrants, on the terms and conditions set
forth in the Old DraftKings Warrant Assignment Agreement. In connection with the consummation of the GNOG Transaction and pursuant to the Old DraftKings Warrant Assignment Agreement, each of the outstanding Private Warrants became exercisable for one share of DraftKings Inc. Class A common stock on the existing terms and conditions, except as otherwise described in the Old DraftKings Warrant Assignment Agreement.
In addition, on the GNOG Closing Date, in connection with the consummation of the GNOG Transaction, the Company assumed an additional 5.9 million warrants, each of which entitled the holder to purchase one share of GNOG’s Class A common stock at an exercise price of $11.50 per share (the “GNOG Private Warrants”). Effective as of the consummation of the GNOG Transaction, each of the outstanding GNOG Private Warrants became exercisable for 0.365 of a share of DraftKings Inc.’s Class A common stock, or approximately 2.1 million shares of DraftKings Inc.’s Class A common stock in the aggregate, on the existing terms and conditions of such GNOG Private Warrants, except as otherwise described in the assignment and assumption agreement relating to the GNOG Private Warrants entered into on the GNOG Closing Date. As of March 31, 2026, there were no GNOG Private Warrants outstanding.
The Company classifies the Public Warrants, the Private Warrants and the GNOG Private Warrants pursuant to ASC 815, Derivatives and Hedging, as derivative liabilities with subsequent changes in their respective fair values recognized in the Company’s consolidated statement of operations at each reporting date. As of March 31, 2026 and 2025, the fair value of the Company’s warrant liability was zero and $10.6 million, respectively. Due to fair value changes throughout the three months ended March 31, 2025, the Company recorded a gain on the remeasurement of its warrant liabilities of $2.5 million.
The Private Warrants expired on April 23, 2025, and all remaining GNOG Private Warrants were exercised during 2025. During the three months ended March 31, 2025, 0.2 million Private Warrants were exercised resulting in a reclassification to additional paid-in-capital in the amount of $9.0 million, and no GNOG Private Warrants were exercised.
v3.26.1
Fair Value Measurements
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
Certain assets and liabilities are carried at fair value under U.S. GAAP. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. Financial assets and liabilities carried at fair value and nonrecurring fair value measurements are to be classified and disclosed in one of the following three levels of the fair value hierarchy, of which the first two are considered observable and the last is considered unobservable:
•Level 1 — Quoted prices in active markets for identical assets or liabilities.

•Level 2 — Observable inputs (other than Level 1 quoted prices), such as quoted prices in active markets for similar assets or liabilities, quoted prices in markets that are not active for identical or similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data.

•Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to determining the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies and similar techniques.

The following tables set forth the fair value of the Company’s financial assets and liabilities measured at fair value as of March 31, 2026 and December 31, 2025 based on the three-tier fair value hierarchy:
March 31, 2026
Level 1Level 2Level 3Total
Assets
Cash equivalents:
Money market funds$185,852 $— $— $185,852 
Other non-current assets:
Derivative instruments$— $— $7,059 
(2)
$7,059 
Equity securities— 9,127 
(1)
— 9,127 
Total$185,852 $9,127 $7,059 $202,038 
Liabilities
Other current liabilities$— $— $10,875 
(3)
$10,875 
Other long-term liabilities— — 39,901 
(3)
39,901 
Total$— $— $50,777 $50,777 

December 31, 2025
Level 1Level 2Level 3Total
Assets
Cash equivalents:
Money market funds$184,212 $— $— $184,212 
Other non-current assets:
Derivative instruments$— $— $7,059 
(2)
$7,059 
Equity securities— 9,127 
(1)
— 9,127 
Total$184,212 $9,127 $7,059 $200,398 
Liabilities
Other current liabilities$— $— $14,900 
(3)
$14,900 
Other long-term liabilities— — 59,534 
(3)
59,534 
Total$— $— $74,434 $74,434 

(1)Represents the Company’s non-marketable equity securities, which are classified as Level 2 because the Company measures these assets to fair value using observable inputs for similar investments of the same issuer. The Company has elected the remeasurement alternative for these assets.
(2)Represents the Company’s derivative instruments held in other public and privately held entities. The Company measures these derivative instruments to fair value using option pricing models and, accordingly, classifies these assets as Level 3. There were no new Level 3 derivative instruments sold, purchased by or issued to the Company during the three months ended March 31, 2026. The table below includes a range and an average weighted by relative fair value of the significant unobservable inputs used to measure these Level 3 derivative instruments to fair value. The key inputs to the valuations are underlying stock price, volatility and risk free rate. A change in these significant unobservable inputs might result in a significantly higher or lower fair value measurement at the reporting date. Changes to fair value of these instruments are recorded in Other gain (loss), net on the condensed consolidated statements of operations.
(3)Represents the contingent consideration issuable to former Sports IQ Analytics Inc. (“SIQ”), Dijon Systems Limited (“Dijon”), Simplebet, Inc. (“Simplebet”) and Railbird equityholders in connection with the acquisition of SIQ, acquisition of Dijon, acquisition of Simplebet and the Railbird Transaction, respectively, upon the achievement of certain performance targets. The fair value of contingent consideration was generally calculated using customary valuation models based on probability-weighted outcomes of meeting certain future performance targets and forecasted results. The Company classified the contingent consideration liabilities as a Level 3 fair value measurement due to the lack of observable inputs used in the model. The key inputs to the valuations are the projections of future financial results in relation to the business, revenue risk premium, revenue volatility, and operational leverage ratio as well as management judgment regarding the probability of achieving a future performance target. The table below includes a range and an average weighted by relative fair value of the significant unobservable inputs used to measure contingent consideration at fair value. A change in these significant unobservable inputs might result in a significantly higher or lower fair value measurement at the reporting date.
Changes to fair value of these instruments are recorded in Other gain (loss), net on the condensed consolidated statements of operations.
March 31, 2026December 31, 2025
Significant Unobservable Inputs of Level 3 InvestmentsRange (Weighted Average)Range (Weighted Average)
Revenue volatility
10.6% - 18.9% (16.9%)
10.6% - 17.3% (15.3%)
Equity volatility
45.0% - 54.5% (52.1%)
45.0% - 54.2% (51.0%)
Operational leverage ratio
60.0% - 75.0% (67.3%)
61.0% - 75.0% (65.4%)

The following table provides a roll forward of the recurring Level 3 fair value liability measurements:

20262025
Opening Balance$74,434 $77,965 
Fair value adjustment to contingent consideration liabilities(23,657)— 
Payment of contingent consideration liabilities— (3,300)
Balance at March 31$50,777 $74,665 
v3.26.1
Revenue Recognition
 3 Months Ended
Mar. 31, 2026
Revenue from Contract with Customer [Abstract]  
Revenue Recognition Revenue Recognition
Deferred Revenue

The Company includes deferred revenue within accounts payable and accrued expenses and liabilities to users in the condensed consolidated balance sheets. The deferred revenue balances were as follows:
Three Months Ended March 31,
20262025
Deferred revenue, beginning of the period$174,750 $166,463 
Deferred revenue, end of the period$131,726 $133,700 
Revenue recognized in the period from amounts included in deferred revenue at the beginning of the period$163,837 $140,232 

Deferred revenue primarily represents contract liabilities related to the Company’s obligation to transfer future value in relation to in period transactions in which the Company has received consideration. These obligations are primarily related to incentive programs and wagered amounts associated with unsettled or pending outcomes that fluctuate based on the volume of activity. Such obligations are recognized as liabilities when awarded to users and are recognized as revenue when those liabilities are later resolved, often within the following period.
Revenue Disaggregation

We disaggregate revenue from contracts with customers by Sportsbook, iGaming and Other as we believe it best depicts how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors.
Disaggregation of revenue for the three months ended March 31, 2026 and 2025 is as follows:
Three Months Ended March 31,
20262025
Sportsbook$1,094,874 $881,957 
iGaming461,300 423,471 
Other89,902 103,378 
Total Revenue$1,646,076 $1,408,806 
Sportsbook revenue includes online sportsbook and retail sportsbook revenue. Other revenue primarily includes Fantasy, Lottery, Prediction Markets and interest income on customer deposits. The opening and closing balances of the Company’s accounts receivable from contracts with customers were $105.6 million and $86.1 million for the three months ended March 31, 2026, respectively, and $57.8 million and $66.6 million for the three months ended March 31, 2025, respectively.
v3.26.1
Stock-Based Compensation
 3 Months Ended
Mar. 31, 2026
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation Stock-Based Compensation
The Company has historically issued three types of stock-based compensation: time-based awards, long-term incentive plan (“LTIP”) awards and performance-based stock compensation plan (“PSP”) awards. Time-based awards are equity awards that tie vesting to length of service with the Company and generally vest over a four-year period in annual and/or quarterly installments. LTIP awards are performance-based equity awards that are used to establish longer-term performance objectives and incentivize management to meet those objectives. PSP awards are performance-based equity awards which establish performance objectives related to one or two particular fiscal years. LTIP awards generally vest when revenue and/or Adjusted EBITDA targets are achieved amongst other conditions, while PSP awards generally vest upon achievement of revenue and/or Adjusted EBITDA targets and have a range of payouts amongst other conditions. All stock-based compensation awards expire seven to ten years after the grant date thereof.
The following table shows restricted stock unit (“RSU”) and stock option activity for the three months ended March 31, 2026:
OptionsRSUsTotalWeighted Average Exercise Price of OptionsWeighted Average FMV of RSUs
Time BasedPSPLTIP
Outstanding at December 31, 202518,006 13,584 7,866 409 39,865 $10.03 $31.16 
Granted— 11,789 6,096 — 17,885 — 23.31 
Exercised options / vested RSUs(1,773)(2,440)(584)(204)(5,001)1.87 29.86 
Change in awards due to performance multiplier— — (76)— (76)— 16.12 
Forfeited(5)(506)(20)(16)(547)14.83 32.45 
Outstanding at March 31, 202616,228 22,427 13,282 189 52,126 $10.92 $27.34 

As of March 31, 2026, total unrecognized stock-based compensation expense of $744.2 million related to granted, and unvested stock-based compensation arrangements is expected to be recognized over a weighted-average period of 3.0 years. The following table shows stock-based compensation expense for the three months ended March 31, 2026 and 2025:

Three Months Ended March 31, 2026Three Months Ended March 31, 2025
OptionsRSUsTotalOptionsRSUsTotal
Time-based (1)
$2,823 $54,828 $57,651 $1,936 $42,692 $44,628 
PSP (2)
— 7,450 7,450 — 33,170 33,170 
LTIP (2)
— 114 114 — 1,048 1,048 
Total$2,823 $62,392 $65,215 $1,936 $76,910 $78,846 
(1) Time-based awards vest and are expensed over a defined service period.
(2) PSP and LTIP awards vest based on defined performance criteria and are expensed based on the probability of achieving such criteria.
v3.26.1
Income Taxes
 3 Months Ended
Mar. 31, 2026
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The Company’s income tax provision (benefit) for the three months ended March 31, 2026 and 2025 is as follows:
Three Months Ended March 31,
20262025
Income tax provision (benefit)$6,369 $(5,600)

The effective tax rates for the three months ended March 31, 2026 and 2025 were 27.8% and 14.2%, respectively. The difference between the Company’s effective tax rates for the three month periods in 2026 and 2025 and the U.S. statutory tax rate of 21% was primarily due to a valuation allowance related to the Company’s deferred tax assets, offset partially by current
state tax and current foreign tax. The Company regularly evaluates the realizability of its deferred tax assets and establishes a valuation allowance if it is more likely than not that some or all of the deferred tax assets will not be realized.
v3.26.1
Segment Information
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Segment Information Segment Information
The Company has one consolidated reportable segment. This segment provides users with Sportsbook, iGaming, Fantasy, Lottery, Prediction Markets, and other online offerings as well as the design, development and licensing of sports betting and casino gaming software for its Sportsbook and iGaming offerings. The Company drives revenue primarily in North America and manages the business activities on a consolidated basis.
The determination of reportable operating segments is based on the Chief Operating Decision Maker’s (“CODM”) use of financial information provided for the purposes of assessing performance and making operating decisions. The Company’s CODM is its Co-founder and Chief Executive Officer. The CODM uses net income (loss) to allocate resources and assess the performance of the Company by comparing actual results to historical results and previously forecasted financial information and the allocation of budget among cost of revenues, sales and marketing, product and technology, and general and administrative expenses. The measure of segment assets is reported on the condensed consolidated balance sheets as Total assets.
The accounting policies of the Company’s consolidated segment are the same as those described in “Note 2 – Summary of Significant Accounting Policies and Practices.” Any intercompany revenues or expenses are eliminated in consolidation.
The following table presents revenue, significant expenses, and net income (loss) for our consolidated segment:
 Three Months Ended March 31,
 20262025
Total revenue$1,646,076 $1,408,806 
Less:
Cost of revenue: Gaming taxes569,531 483,403 
Cost of revenue: Other (1)
313,196 294,609 
Adjusted sales and marketing expenses (2)
391,482 333,198 
Adjusted product and technology expenses (2)
97,617 87,453 
Adjusted general and administrative expenses (2)
106,398 107,513 
Depreciation and amortization71,661 70,116 
Interest (income) expense, net5,739 (4,395)
Stock-based compensation65,215 78,846 
Income tax provision (benefit)6,369 (5,600)
Other segment items (3)
(2,202)(2,473)
Consolidated net income (loss)$21,070 $(33,864)

(1)Cost of revenue: Other includes all cost of revenue, other than gaming tax, presented in the condensed consolidated statements of operations, adjusted for the impact of depreciation and amortization and stock-based compensation.
(2)These items represent the respective line items in the condensed consolidated statements of operations, adjusted for the impact of depreciation and amortization; stock-based compensation; transaction-related costs; certain litigation, settlement and related costs; certain advocacy and other related legal expenses; and other expenses, as further described below.
(3)Other segment items include: (i) transaction-related costs; (ii) certain external legal costs related to litigation and litigation settlement costs deemed unrelated to our ordinary-course business operations; (iii) certain costs relating to advocacy efforts and other legal expenses in jurisdictions where we do not operate certain offerings and are actively seeking licensure, or similar approval, for those offerings, excluding costs relating to advocacy efforts and other legal expenses in jurisdictions where we do not operate that are incurred in the ordinary course of business and costs relating to advocacy efforts and other legal expenses incurred in jurisdictions where related legislation has been passed and we currently operate; (iv) (gain) loss on remeasurement of warrant liabilities; (v) (gain) loss from equity method investments and (vi) other items not associated with our primary offerings, such as gains or losses on contingent consideration, gains or losses on business disposals and termination-related expenses.
v3.26.1
Earnings (Loss) Per Share
 3 Months Ended
Mar. 31, 2026
Earnings Per Share [Abstract]  
Earnings (Loss) Per Share Earnings (Loss) Per Share
The computation of earnings (loss) per share and weighted-average shares of the Company’s Class A common stock outstanding for the periods presented are as follows:
Three Months Ended March 31,
20262025
Numerator:
Net income (loss) attributable to common stockholders – basic$21,070 $(33,864)
Loss (gain) on remeasurement of contingent consideration(5,329)— 
Net income (loss) attributable to common stockholders – diluted$15,741 $(33,864)
Denominator:
Weighted-average Class A common stock shares outstanding – basic494,351 493,323 
Weighted-average diluted impact of contingent consideration (1)
415 — 
Weighted-average diluted impact of options and RSUs (1)
15,864 — 
Weighted-average Class A common stock outstanding – diluted510,630 493,323 
Basic earnings (loss) per share attributable to common stockholders:$0.04 $(0.07)
Diluted earnings (loss) per share attributable to common stockholders:$0.03 $(0.07)
(1) Calculated using treasury stock method

There were no preferred or other dividends declared for the three months ended March 31, 2026. The below table includes the total securities potentially dilutive for the three months ended March 31, 2026 and 2025, which have been excluded from the computation of diluted earnings (loss) per share.
March 31,
20262025
Class A common stock resulting from exercise of all warrants— 1,196 
Stock Options and RSUs9,578 51,200 
Convertible notes13,337 13,337 
Total22,915 65,733 

The Company has contingent consideration arrangements related to business combinations as disclosed in “Note 3 – Business Combinations.” Certain potential shares associated with these arrangements have been excluded from the computations and tables above as they are contingently issuable, and the contingency to which the issuance relates was not met at the end of the reporting period.
v3.26.1
Related-Party Transactions
 3 Months Ended
Mar. 31, 2026
Related Party Transactions [Abstract]  
Related-Party Transactions Related-Party Transactions
Equity Method Investments
The Company has committed to invest up to $17.5 million in DBDK Venture Fund I, LP, in which the Company holds a 28.6% ownership interest, and $21.0 million in DBDK Fund II, LP, in which the Company holds a 35.0% ownership interest. Both funds are Delaware limited partnerships and are both managed by Drive by DraftKings, LLC (“DBDK”). As of March 31, 2026, the Company had invested a total of $13.5 million and $2.0 million of the total commitment in DBDK Venture Fund I, LP and DBDK Fund II, LP, respectively. The Company also provides office space and general operational support to DBDK, which is partially owned by DKFS, LLC, an equity-method affiliate in which the Company has a 49.9% membership interest, in exchange for services-in-kind. The operational support is primarily general and administrative services.
Aircraft
On each of March 30, 2026 and 2025, the Company renewed a one-year lease of an aircraft from an entity controlled by Mr. Robins, pursuant to which Mr. Robins’ entity leased the aircraft to the Company for $0.6 million for a one-year period (the “Aircraft Leases”). The Company covered all operating, maintenance and other expenses associated with the aircraft. The audit
and compensation committees of the Company’s Board of Directors approved this arrangement, as well as the Aircraft Leases, based on, among other things, the requirements of the overall security program that Mr. Robins and his family fly private and the committees’ assessment that such an arrangement is more efficient and flexible and better ensures safety, confidentiality and privacy. During the three months ended March 31, 2026 and 2025, the Company incurred $0.1 million of expense under the Aircraft Leases in each period.
v3.26.1
Commitments and Contingencies
 3 Months Ended
Mar. 31, 2026
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
Contractual Obligations and Contingencies
The Company is a party to several non-cancelable contracts with vendors where the Company is obligated to make future minimum payments under the terms of these contracts as follows:
Years Ending December 31,
From April 1, 2026 to December 31, 2026$423,777 
2027585,762 
2028495,820 
2029421,211 
2030171,855 
Thereafter40,908 
Total$2,139,333 

Surety Bonds

As of March 31, 2026, the Company has been issued $500.0 million in surety bonds at a combined annual premium cost of 0.5%, which are held for certain regulators’ use and benefit in order for the Company to satisfy state license requirements. There have been no claims against such bonds, and the likelihood of future claims is remote.
Stock Repurchase Program

On July 30, 2024, the Company’s Board of Directors authorized the repurchase of an aggregate of up to $1.0 billion of the Company’s Class A common stock (the “Stock Repurchase Program”). On November 6, 2025, our Board of Directors approved a $1.0 billion increase to our existing stock repurchase authorization, which brings the aggregate share repurchase authorization to $2.0 billion of our Class A common stock. Under the Stock Repurchase Program the Company may make repurchases of its Class A common stock through open market purchases, privately negotiated transactions or other transactions in accordance with applicable securities laws, subject to market conditions and other factors. The Company’s Stock Repurchase Program does not require it to acquire any specific number or amount of its Class A common stock and may be terminated at any time. The Company may enter into Rule 10b5-1 plans from time to time to facilitate repurchases of its Class A common stock in connection with its Stock Repurchase Program.
The Company repurchased 3.3 million shares and 3.7 million shares for $98.6 million and $142.3 million during the three months ended March 31, 2026 and 2025, respectively, under the Stock Repurchase Program.
Contingencies
We are involved in a number of legal proceedings (including those described below) concerning matters arising in connection with the conduct of our business activities. These proceedings are at varying stages, and many of these proceedings seek an indeterminate amount of damages. We regularly evaluate the status of the legal proceedings in which we are involved to assess whether a loss is probable or there is a reasonable possibility that a loss or an additional loss may have been incurred and to determine if accruals are appropriate. If accruals are not appropriate, we further evaluate each legal proceeding to assess whether an estimate of the possible loss or range of possible loss can be made.
For certain cases described on the following pages, management is unable to provide a meaningful estimate of the possible loss or range of possible loss because, among other reasons, (i) the proceedings are in various stages; (ii) damages have not been sought; (iii) damages are unsupported and/or exaggerated; (iv) there is uncertainty as to the outcome of pending appeals or motions; (v) there are significant factual issues to be resolved; and/or (vi) there are novel legal issues or unsettled legal theories
to be presented or a large number of parties involved. Unless otherwise indicated, for each of the matters described below, management does not believe that, despite the potential for significant damages, and based on currently available information, the outcome of any specific matter will have a material adverse effect on our financial condition, though an outcome of a specific matter could be material to our operating results for any particular period, depending, in part, upon the operating results for such period.
Attorney General of Texas
On January 19, 2016, the Texas Attorney General issued an opinion letter that “odds are favorable that a court would conclude that participation in paid daily fantasy sports leagues constitutes illegal gambling” under Texas law. In response to the opinion letter, we sued the Texas Attorney General on March 4, 2016 in Dallas County, Texas.
The lawsuit makes five claims: (1) a claim for a declaratory judgment that daily fantasy sports contests do not violate Texas law; (2) a claim of denial of due process under the Fifth and Fourteenth Amendments to the U.S. Constitution; (3) a claim of denial of due course of law under Article I of the Texas Constitution; (4) a claim of denial of equal protection under the Fourteenth Amendment to the U.S. Constitution; and (5) a claim of denial of equal rights under Article I of the Texas Constitution. We are also seeking reimbursement of our costs and attorneys’ fees.
On April 16, 2018, the parties filed a notice of agreed non-suit without prejudice, and we re-filed our lawsuit against the Texas Attorney General in Travis County. On April 17, 2018, the Dallas County court granted the parties’ agreed non-suit without prejudice, thereby dismissing the Dallas County lawsuit without prejudice. FanDuel filed a petition in intervention on August 24, 2018, seeking essentially the same relief as the Company seeks. The parties filed an agreed motion to extend the scheduling order seeking, among other things, to change the non-jury trial date to January 18, 2027.
We intend to vigorously pursue our claims. In the event a court ultimately determines that daily fantasy sports contests violate Texas law, that determination could cause financial harm to us and loss of business in Texas.
We cannot predict with any degree of certainty the outcome of these matters or determine the extent of any potential liabilities.
Winview I

On July 7, 2021, Winview Inc., a Delaware corporation (“Winview”) filed suit against the Company in the United States District Court for the District of New Jersey. In the complaint, Winview alleges that the Company infringes two patents: U.S. Patent No. 9,878,243 (“the ’243 Patent”), entitled “Methodology for Equalizing Systemic Latencies in Television Reception in Connection with Games of Skill Played in Connection with Live Television Programming”, and U.S. Patent No. 10,721,543 (“the ’543 Patent”), entitled “Method of and System for Managing Client Resources and Assets for Activities on Computing Devices”. The allegations based on the ’243 Patent are directed to Sportsbook, and the allegations based on the ’543 Patent are directed to both Sportsbook and Fantasy.
On July 28, 2021, Winview filed an amended complaint, in which it alleges that the Company infringes two additional patents: U.S. Patent No. 9,993,730 (“the ’730 Patent”), entitled “Methodology for Equalizing Systemic Latencies in Television Reception in Connection with Games of Skill Played in Connection with Live Television Programming”, and U.S. Patent No. 10,806,988 (“the ’988 Patent”), entitled “Method Of and System For Conducting Multiple Contests of Skill with a Single Performance”. The allegations based on the ’730 Patent are directed at Sportsbook, and the allegations based on the ’988 Patent are directed at Fantasy.
On November 15, 2021, Winview filed a second amended complaint (the “SAC”), adding as defendants DK Crown Holdings Inc. and Crown Gaming Inc., a Delaware corporation, which are wholly-owned subsidiaries of the Company. The SAC, among other allegations, repeats the allegations of the first amended complaint that the defendants infringe the ’243 Patent, the ’543 Patent, the ’730 Patent, and the ’988 Patent. On December 15, 2021, the Company filed a motion to dismiss the SAC, arguing that Winview failed to state a claim for direct infringement of the ’543 Patent and the ’730 Patent, and for willful, induced, and contributory infringement for all four asserted patents.
On August 3, 2022, we filed a petition for inter partes review with the Patent Trial and Appeal Board (“PTAB”) challenging the validity of the ’243 Patent. On July 25, 2022, FanDuel filed petitions for inter partes review (“IPRs”) with the PTAB challenging the validity of the ’543 and ’730 Patents. On September 20, 2022, the court entered an order staying the pending motion to dismiss and staying all discovery pending final resolution of the petition for inter partes review through a final written decision. On February 15, 2023, the District Court administratively terminated the lawsuit pending the PTAB’s
final written decision. On January 29, 2024, the PTAB issued final written decisions in the IPRs, finding unpatentable all challenged claims of the ’243, ’543, and ’730 Patents. On February 16, 2024, the parties jointly requested that the case remain administratively terminated. On February 20, 2024, the court granted the request.
On March 29, 2024, Winview filed a notice of appeal in the United States Court of Appeals for the Federal Circuit (the “Federal Circuit”), challenging the PTAB’s final written decisions in the IPRs. On April 11, 2024, the parties jointly requested that the district court litigation remain administratively terminated until at least the Federal Circuit issues its mandate regarding Winview’s appeals. On April 15, 2024, the district court ordered the case to remain administratively terminated. On June 26, 2024, Winview and DraftKings filed a joint stipulation of voluntary dismissal of Winview’s appeal. On June 28, 2024, the Federal Circuit ordered Winview’s appeal dismissed.
On December 17, 2024, the court dismissed all of Winview’s claims with respect to U.S. Patent Nos. 9,878,243 and 9,930,730. On January 6, 2025, defendants filed a motion to dismiss Winview’s direct infringement claims for U.S. Patent No. 10,721,543 as well as Winview’s claim for willful, induced, and contributory infringement for the two remaining patents-in-suit. On July 11, 2025, the court granted the Company’s motion to dismiss without prejudice. On August 11, 2025, Winview filed an amended complaint alleging infringement of different claims of the ’543 and ’988 Patents, and alleging infringement by DK Sportsbook, Fantasy, DK Casino, Pick6, and DK Horse. On September 26, 2025, DraftKings filed a motion to dismiss Winview’s direct infringement claims for the ’543 Patent and Winview’s claim for willful, induced, and contributory infringement for the two remaining patents-in-suit.
On January 16, 2026, DraftKings filed petitions for IPRs under 35 U.S.C. § 312 and 37 C.F.R. § 42.104 for U.S. Patent No. 11,451,883 and U.S. Patent No. 11,338,189, which relate to the ’543 Patent and ’988 Patent, respectively. On March 17, 2026, the court granted-in-part and denied-in-part our motion to dismiss. The court denied our motion to dismiss the direct infringement claims of the ’543 Patent but granted with prejudice the motion to dismiss the willful infringement and indirect infringement claims as to the ’543 Patent and ’988 Patent. The infringement claims of the ’543 Patent and ’988 Patent will therefore proceed. On March 31, 2026, DraftKings filed its counterclaims, answer, and affirmative defenses to Winview’s Third Amended Complaint. On April 14, 2026, Winview filed its answer to DraftKings’ counterclaims.
We intend to vigorously defend this case. In the event that a court ultimately determines that we are infringing the asserted patents, we may be subject to substantial damages, which may include treble damages and/or an injunction that could require us to modify certain features that we currently offer.
We cannot predict with any degree of certainty the outcome of this matter or determine the extent of any potential liabilities. We also cannot provide an estimate of the possible loss or range of loss. Any adverse outcome in this matter could expose the Company to substantial damages or penalties that may have a material adverse impact on the Company’s operations and cash flows.
AG 18, LLC d/b/a Arrow Gaming

On August 19, 2021, AG 18, LLC d/b/a Arrow Gaming (“Arrow Gaming”) filed a complaint against the Company in the United States District Court for the District of New Jersey alleging that the Company’s Fantasy and iGaming offerings infringe four patents. On October 12, 2021, Arrow Gaming filed an amended complaint to add one additional patent. The following U.S. Patents were asserted against one or both of the Company’s Fantasy and iGaming offerings in the amended complaint: (1) U.S. Patent No. 9,613,498 (“the ’498 Patent”), entitled “Systems and Methods For Peer-to-Peer Gaming”; (2) U.S. Patent No. 9,978,205 (“the ’205 Patent”), entitled “Location Based Restrictions on Networked Gaming”; (3) U.S. Patent No. 10,497,220, entitled “Location Based Restrictions on Networked Gaming”; (4) U.S. Patent No. 10,614,657 (“the ’657 Patent”), entitled “Location Based Restrictions on Networked Gaming”; and (5) U.S. Patent No. 11,024,131, entitled “Location Based Restrictions on Networked Gaming” (collectively, the “Arrow Gaming Patents”).
On November 10, 2021, we answered the complaint and filed counterclaims (the “Counterclaims”). In the Counterclaims we sought, among other things, a declaratory judgment that the Arrow Gaming Patents are invalid. On December 1, 2021, Arrow Gaming answered our Counterclaims. On December 20, 2021, Arrow Gaming filed a second amended complaint adding new allegations with respect to alleged willful infringement. On January 21, 2022, the Company filed a motion to dismiss plaintiff’s second amended complaint.
Between August 22, 2022 and August 30, 2022, the Company filed petitions for IPRs with the PTAB challenging the validity of each of the Arrow Gaming Patents. On March 14, 2023, the PTAB granted institution of all IPRs. On March 12 and 13, 2024, the PTAB issued final written decisions in all pending IPRs finding all claims that were asserted in the litigation
unpatentable. Only two claims were not found unpatentable: claim 18 of the ’205 Patent and claim 11 of the ’657 Patent. Neither of these claims were asserted in the litigation brought by Arrow Gaming.
On May 14, 2024, Arrow Gaming filed a Notice of Appeal of the IPR directed to the ’498 Patent. On July 10, 2024, DraftKings filed a Notice of Appeal of the IPR directed to the ’205 Patent challenging the PTAB’s final written decision as to claim 18 of the ’205 Patent. On April 15, 2026, the Federal Circuit issued a summary affirmance upholding the PTAB’s final written decision invalidating the asserted claims of the ’498 Patent. On May 6, 2026, the Federal Circuit issued an affirmance in the DraftKings appeal of the IPR directed to the ’205 Patent, upholding the PTAB’s final written decision holding that claim 18 of the ‘205 Patent had not been proven to be unpatentable. On April 28, 2026, Arrow Gaming filed a motion for voluntary dismissal of the lawsuit with prejudice.
Diogenes Ltd. & Colossus (IOM) Ltd.

On December 1, 2021, Diogenes Ltd. & Colossus (IOM) Ltd. (“Colossus”), filed a complaint against the Company in the United States District Court for the District of Delaware alleging that the Company’s Sportsbook offering infringes seven of its patents. The following U.S. Patents, each entitled “Wagering apparatus, methods and systems”, are asserted against the Company’s Sportsbook offering in the complaint: U.S. Patent No. 8,721,439 (“the ’439 patent”); U.S. Patent No. 9,117,341 (“the ’341 patent”); U.S. Patent No. 9,275,516 (“the ’516 patent”); U.S. Patent No. 9,424,716 (“the ’716 patent”); U.S. Patent No. 9,704,338 (“the ’338 patent”); U.S. Patent No. 10,970,969 (“the ’969 patent”); and U.S. Patent No. 10,997,822 (“the ’822 patent”).
On January 24, 2022, the Company filed a motion to dismiss the original complaint. On February 7, 2022, Colossus filed an amended complaint (the “Amended Complaint”) to, among other things, assert one additional patent against the Company, U.S. Patent No. 11,200,779 (“the ’779 patent”). The patents asserted by Colossus are collectively referred to as the “Colossus Patents.”
The Company filed a motion to dismiss the Amended Complaint on February 22, 2022. On July 18, 2022, Magistrate Judge Burke issued a report and recommendation (the “Report and Recommendation”) that the motion to dismiss be granted-in-part and denied-in-part. On August 26, 2022, District Court Judge Noreika adopted the Report and Recommendation of Magistrate Judge Burke regarding the motion to dismiss. On December 27, 2022, the Company filed an Answer to the Amended Complaint, including certain affirmative defenses. On January 17, 2023, Colossus filed a motion to strike the affirmative defense of unenforceability from the Company’s Answer. On February 7, 2023, the Company filed an Amended Answer and Counterclaims to the Amended Complaint, and also filed a response to Colossus’ motion to strike. On February 28, 2023, Colossus filed another motion to strike DraftKings’ inequitable conduct affirmative defense and counterclaim. Magistrate Judge Burke held a hearing on Colossus’ motion on June 6, 2023 and subsequently issued a report and recommendation (the “Second Report and Recommendation”) that the motion be denied in part and granted in part. On August 2, 2023, Judge Noreika overruled Colossus’ objections and adopted the Second Report and Recommendation.
Between November 29, 2022, and February 7, 2023, the Company filed petitions for inter partes review with the PTAB challenging the validity of the Colossus Patents. The PTAB granted institution of IPRs for each of the ’341 patent, ’969 patent, and the ’822 patent. The PTAB denied institution of IPR for each of the ’516 patent, ’716 patent, ’338 patent and the ’779 patent. On September 11, 2023, the Company filed a request for Director Review of the PTAB’s decision not to institute review in the IPR for the ’779 patent. On November 7, 2023, the Director of the U.S. Patent and Trademark Office delegated Director Review of the PTAB’s institution decision in the IPR for the ’779 Patent to the Delegated Review Panel (“DRP”) to determine whether to grant rehearing. On February 21, 2024, the DRP issued a decision vacating the PTAB’s denial of institution of the IPR directed to the ’779 Patent and instructing the PTAB to reconsider institution. On May 15, 2024, the PTAB instituted the IPR directed to the ’779 Patent. On May 9, 2025, the PTAB issued a final written decision finding all claims of the ’779 Patent that were asserted in the litigation unpatentable. On July 7, 2025, Colossus filed a Notice of Appeal in the Federal Circuit, challenging the PTAB’s final written decision in the IPR directed to the ’779 Patent. On October 17, 2025, Colossus filed its opening brief in the appeal, on January 26, 2026, the Company filed its responsive brief in the appeal, and on April 28, 2026, Colossus filed its reply brief.
On March 15, 2024, the parties entered into a partial settlement agreement, in which the parties agreed to, among other things: (1) dismissal with prejudice of the claims relating to the ’439 patent; ’341 patent; ’516 patent; ’716 patent; ’338 patent; ’969 patent; and the ’822 patent; and (2) DraftKings’ withdrawal of its IPRs with respect to the ’341 Patent, the ’969 Patent, and the ’822 Patent. The dismissal and withdrawal both occurred on March 18, 2024. Only the ’779 Patent remains pending in the district court litigation. The parties have stipulated to a stay of the district court litigation pending resolution of the IPR directed to the ’779 Patent.
We intend to vigorously defend this case. In the event that a court ultimately determines that we are infringing the asserted patents, we may be subject to substantial damages, which may include treble damages and/or an injunction that could require us to modify certain features that we currently offer.
We cannot predict with any degree of certainty the outcome of this matter or determine the extent of any potential liabilities. We also cannot provide an estimate of the possible loss or range of loss. Any adverse outcome in this matter could expose the Company to substantial damages or penalties that may have a material adverse impact on the Company’s operations and cash flows.
Steiner

Nelson Steiner filed suit against the Company and FanDuel Inc. in Florida state court on November 9, 2015. The action was subsequently transferred to In Re: Daily Fantasy Sports Litigation (Multi-District Litigation) (the “MDL”), and Mr. Steiner’s action was consolidated into the MDL’s amended complaint, which, in February 2016, consolidated numerous actions (primarily purported class actions) filed against the Company, FanDuel, and other related parties in courts across the United States. By June 23, 2022, the MDL was resolved, except for Mr. Steiner’s action, and the court officially closed the MDL docket on July 8, 2022.
Mr. Steiner brought this action as a concerned citizen of the state of Florida alleging that, among other things, defendants’ daily fantasy sports contests are illegal gambling under the state laws of Florida and sought disgorgement of “gambling losses” purportedly suffered by Florida citizens on behalf of the state. On June 23, 2022, the MDL court remanded Mr. Steiner’s action to the Circuit Court for Pinellas County, Florida.
On September 9, 2025, DraftKings and FanDuel jointly moved to dismiss Steiner’s amended complaint. On November 19, 2025, the Court granted the motion to dismiss the amended complaint with prejudice.
Shareholder Derivative Litigation Related to Marketplace

On May 31, 2023, the first of three substantially similar, putative shareholder derivative actions was filed in Nevada state court by an alleged shareholder of the Company. On October 29, 2024, the court entered a stipulated order consolidating the three actions under the caption In re DraftKings Inc. Stockholder Derivative Litigation and appointed lead counsel. On December 23, 2024, the plaintiffs filed a consolidated amended complaint. The amended complaint purports to assert claims on behalf of the Company against certain senior officers and members of the Board of Directors of the Company based primarily on allegations that the defendants caused or allowed the Company to sell NFTs in violation of applicable law. The amended complaint also alleges that certain individuals are liable for trading in Company stock based on non-public information about its NFT business. The amended complaint seeks unspecified compensatory damages on the Company's behalf, changes to corporate governance and internal procedures, costs and attorney’s fees, and other unspecified relief.
On February 21, 2025, the defendants moved to dismiss the amended complaint. On September 12, 2025, the court entered an order granting in part and denying in part the defendants’ motion to dismiss on the merits pursuant to Rule 12(b)(5). The court dismissed without prejudice the plaintiffs’ first, second, and fifth causes of action—asserting breach of fiduciary duty, corporate waste, and insider trading—under Rule 12(b)(5). The court denied without prejudice the defendants’ motion under Rule 12(b)(5) as to the plaintiffs’ third and fourth causes of action—alleging the sale of unregistered securities and transacting business as an unlicensed broker-dealer. The court deferred consideration of the defendants’ separate motion to dismiss for failure to plead demand futility under Rule 23.1, and granted the plaintiffs leave to file an amended complaint within thirty days of entry of the order. After plaintiffs declined to replead the previously dismissed claims, on November 17, 2025, the defendants renewed their motion to dismiss for failure to plead demand futility under Rule 23.1. On February 3, 2026, the court issued an oral ruling, which was confirmed by a subsequent written order entered on March 3, 2026, dismissing the remaining claims with prejudice. The plaintiffs did not file a notice of appeal by the April 6, 2026, deadline.
Scanlon

On December 8, 2023, plaintiffs Melissa Scanlon and Shane Harris, individually and on behalf of others similarly situated, filed a purported class action lawsuit against DraftKings in Middlesex County Superior Court of Massachusetts. Among other things, plaintiffs allege that the Company’s promotion that offered new customers an opportunity to earn up to 1,000 in site credits, and related advertisements, were: (1) unfair or deceptive practices in violation of Massachusetts General Laws (“M.G.L.”) c. 93A, §§ 2, 9; and (2) untrue and misleading advertising in violation of M.G.L. c. 266, § 91. The plaintiffs are seeking, among other things, injunctive relief, actual damages, double or treble damages, and attorneys’ fees.
On March 26, 2024, the case was transferred to the Business Litigation Session of the Massachusetts Superior Court. On January 29, 2024, DraftKings filed a motion to dismiss all of plaintiffs’ claims. On August 19, 2024, the court denied the motion to dismiss. On October 10, 2025, DraftKings served its motion for summary judgment. On February 18, 2026, the Court issued an order denying DraftKings’ motion for summary judgment on the Chapter 93A claim (Count I) but granted the motion on the Chapter 266 claim (Count II). On March 10, 2026, plaintiffs filed a motion for reconsideration of the Order with respect to Count II, which the court denied on April 9, 2026.
The Company intends to vigorously defend this case. Any adverse outcome in this matter could subject the Company to substantial damages and/or require alterations to the Company’s business. The Company cannot provide any assurance as to the outcome of this matter.
The Company cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages. The Company also cannot provide an estimate of the possible loss or range of loss. Any adverse outcome in this matter could expose the Company to substantial damages or penalties that may have a material adverse impact on the Company’s operations and cash flows.
McAfee

On June 10, 2024, plaintiff Matthew McAfee, individually and on behalf of all others similarly situated, filed a purported class action lawsuit against DraftKings in the Hamilton County Superior Court, State of Indiana. Among other things, plaintiff alleges that those customers who had winning bets placed and accepted on the October 24, 2023 Lakers versus Nuggets basketball game that were subsequently canceled by DraftKings for obvious error were not timely canceled and should have been paid. Plaintiff brings claims for: (1) Indiana Deceptive Consumer Sales Act – Incurable Deceptive Act; (2) Indiana Deceptive Consumer Sales Act – Uncured Deceptive Act; and (3) breach of contract. Plaintiff seeks, among other things, actual and statutory damages, treble and exemplary damages, interest, and attorney fees and costs.
On July 12, 2024, DraftKings removed the matter to the United States District Court for the Southern District of Indiana. On August 14, 2024, DraftKings filed a motion to dismiss. On February 7, 2025, the court granted DraftKings’ motion to dismiss as to plaintiff’s DCSA claims and denied DraftKings’ motion to dismiss as to plaintiff’s breach of contract claim. The court also held that DraftKings may amend its response to plaintiff’s motion for class certification up until February 24, 2025. On February 12, 2025, McAfee filed a motion for leave to file a first amended complaint. On May 9, 2025, the court denied the motion to amend.
On November 20, 2024, plaintiff filed a motion for class certification, and on June 11, 2025, plaintiff filed an amended motion for class certification. On December 9, 2025, the court granted the class certification motion. On January 20, 2026, the court entered an order directing the parties to provide class notice within thirty days of the order. The parties provided class notice.
On October 21, 2025, plaintiff filed a motion for summary judgment. On November 17, 2025, DraftKings’ filed an opposition to plaintiffs’ summary judgment motion and its own summary judgment motion. Both motions remain pending.
The Company intends to vigorously defend this case. Any adverse outcome in this matter could subject the Company to substantial damages and/or require alterations to the Company’s business. The Company cannot provide any assurance as to the outcome of this matter.
The Company cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages. The Company also cannot provide an estimate of the possible loss or range of loss. Any adverse outcome in this matter could expose the Company to substantial damages or penalties that may have a material adverse impact on the Company’s operations and cash flows.
Youngs

On January 7, 2025, plaintiff Matthew Youngs, individually and on behalf of all others similarly situated, filed a purported class action complaint against DraftKings Inc., Crown NJ Gaming Inc. dba DraftKings, DGMB Casino LLC and Resorts Atlantic City in the United States District Court, District of New Jersey. Among other things, plaintiff alleges that the Company’s “risk-free” and “no sweat” promotions, and the promotion that offered new customers an opportunity to earn up to 1,000 site credits as a sportsbook deposit match, as well as promotions that offered site credits in connection with a casino deposit match, were unfair, unconscionable, and misleading. The plaintiff's complaint, as amended, asserts claims for violation
of the New Jersey Consumer Fraud Act (“CFA”), intentional misrepresentation, unjust enrichment, and conversion. Plaintiff seeks compensatory damages, punitive damages, attorney fees and costs. Plaintiff seeks to certify a nationwide class of anyone who participated in the casino deposit match promotion and lost part or all of their initial deposit (with subclasses for New Jersey, Connecticut, Pennsylvania, Michigan, and West Virginia). Plaintiff also seeks a statewide class of (i) anyone in New Jersey who allegedly opted into the “risk free” or “no sweat” promotion and lost a bet; and (ii) anyone in New Jersey who opened an account and deposited money while in New Jersey in response to the 1,000 new customer sportsbook deposit match promotion.
On March 27, 2025, DraftKings filed a motion to dismiss the complaint. In response to the motion to dismiss, on April 17, 2025, plaintiff Matthew Youngs and a second plaintiff (Jason Lombardozzi), individually and on behalf of all others similarly situated, filed a first amended purported class action complaint against DraftKings Inc. and Crown NJ Gaming Inc. dba DraftKings. In the amended complaint, the plaintiffs removed DGMB Casino and Resorts Atlantic as defendants and removed claims of negligence. In the amended complaint, the plaintiffs added new CFA claims alleging that (i) the casino deposit match was unconscionable because it inculcated gaming addiction and (ii) the Company engaged in unconscionable conduct by targeting customers with casino deposit match promotions after such customers had become addicted to gaming. The court terminated the defendants’ motion to dismiss as moot due to the plaintiffs filing an amended complaint. On May 22, 2025, DraftKings filed a motion to dismiss the amended complaint. On July 23, 2025, the court granted the motion to dismiss with prejudice regarding the unjust enrichment claim and dismissing without prejudice all other claims. On August 13, 2025, plaintiffs filed a second amended complaint: dismissing Lombardozzi as a plaintiff and added a new plaintiff (Charles Thompson); dismissing their CFA claims alleging that the casino deposit match promotions allegedly inculcated gaming or were otherwise unconscionable; and adding two new intentional misrepresentation claims related to the “risk free” and “no sweat promotions,” and new customer sportsbook deposit match promotion. Plaintiffs seek to certify nationwide classes of persons who opted into each of the promotions at issue, as well as a New Jersey subclass.
On September 10, 2025, DraftKings filed a motion to dismiss the second amended complaint. On November 19, 2025, the Court granted the motion in part and denied it in part, allowing plaintiffs’ CFA and common law fraud claims as to the “risk free” promotion to proceed, as well as an equitable fraud claim concerning the casino deposit match promotion. DraftKings filed its answer to the second amended complaint on December 17, 2025.
The Company intends to vigorously defend this case. Any adverse outcome in this matter could subject the Company to substantial damages and/or require alterations to the Company’s business. The Company cannot provide any assurance as to the outcome of this matter.
The Company cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages. The Company also cannot provide an estimate of the possible loss or range of loss. Any adverse outcome in this matter could expose the Company to substantial damages or penalties that may have a material adverse impact on the Company’s operations and cash flows.
James Beyer, Collin Smothers, Mateen Zafer and Corey Davis

On January 8, 2025, plaintiffs James Beyer, Collin Smothers, Mateen Zafer and Corey Davis, individually and on behalf of all others similarly situated, filed a purported class action complaint against DraftKings Inc., Crown IL Gaming LLC dba DraftKings, Northside Crown Gaming LLC, and Casino Queen Inc. in the Circuit Court of Cook County, Illinois Law Division. Among other things, plaintiffs allege that the Company’s “risk-free” and “no sweat” promotions, and the promotion that offered new customers an opportunity to earn up to 1,000 site credits as a deposit match, were unfair and misleading. Plaintiffs also allege that DraftKings targets underage users with its advertising and by allowing them to participate in daily fantasy sports contests in order to inculcate gaming habits. Plaintiffs bring claims for violation of the Illinois Consumer Fraud and Deceptive Practices Act, intentional misrepresentation, fraudulent inducement, unjust enrichment, civil conspiracy, and declaratory relief. Plaintiffs seek, among other things, unspecified compensatory damages, punitive damages, attorney fees and costs. Plaintiffs seek to certify a nationwide class of (i) anyone who opted into a DraftKings promotion advertising a “risk-free” or “no sweat” bet and lost their bet (with an Illinois subclass); (ii) anyone who opened an account and deposited money in response to the new customer 1,000 site credit promotion (with an Illinois subclass); and (iii) anyone who opened an account and entered free promotions on DraftKings’ platform before turning twenty-one years old and then placed paid bets on DraftKings after turning twenty-one years old (with an Illinois subclass).
On February 7, 2025, DraftKings removed the complaint to the United States District Court, Northern District of Illinois, Eastern Division. On April 4, 2025, DraftKings filed a motion to dismiss. In response, on May 9, 2025, plaintiffs filed their first amended complaint (the “First Amended Complaint”). On June 12, 2025, DraftKings filed a motion to dismiss the First
Amended Complaint. Plaintiffs filed their Opposition to the Motion to Dismiss on July 9, 2025, and DraftKings filed its reply on July 28, 2025.
On August 8, 2025, the court ordered the parties to provide a supplemental brief setting forth the basis for the court’s subject matter jurisdiction under the Class Action Fairness Act in light of the mandatory “local controversy exception” contained in 28 U.S.C. §1332(d)(4)(A). On November 20, 2025, the District Court ruled that it had jurisdiction under the Class Action Fairness Act. On November 25, 2025, the District Court denied DraftKings’ motion to dismiss the First Amended Complaint. On December 23, 2025, DraftKings filed a motion to certify an interlocutory appeal pursuant to 28 U.S.C. § 1292(b) on the issue of whether a mobile app, or its specific features (e.g., the app interface), can be a “product” for purposes of Illinois product liability law. On February 26, 2026, the District Court denied DraftKings’ motion to certify. On March 26, 2026, DraftKings filed a motion for reconsideration of the Court’s order denying certification, and on April 1, 2026, the District Court denied DraftKings’ motion for reconsideration.
The Company intends to vigorously defend this case. Any adverse outcome in this matter could subject the Company to substantial damages and/or require alterations to the Company’s business. The Company cannot provide any assurance as to the outcome of this matter.
The Company cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages. The Company also cannot provide an estimate of the possible loss or range of loss. Any adverse outcome in this matter could expose the Company to substantial damages or penalties that may have a material adverse impact on the Company’s operations and cash flows.
Clara De Leon and Eric Mirsberger Jr.

On January 22, 2025, plaintiffs Clara De Leon and Eric Mirsberger Jr., individually and on behalf of all others similarly situated, filed a purported class action complaint (the “Original Complaint”) against DraftKings Inc. and Crown NY Gaming Inc. in the United States District Court for the Southern District of New York. Among other things, plaintiffs allege that the Company’s “risk-free” and “no sweat” promotions, and the promotion that offered new customers an opportunity to earn up to 1,000 site credits as a deposit match, were unfair and misleading. Plaintiffs also allege that DraftKings targets players with gaming addiction issues, including by pairing players who bet large amounts of money with VIP hosts who, plaintiffs allege, are trained to encourage customers to place frequent and large bets. Plaintiffs bring claims for violation of the New York General Business Law sections 349 and 350, negligence, intentional misrepresentation, fraudulent inducement, unjust enrichment, and declaratory relief. Plaintiffs seek, among other things, unspecified compensatory damages, punitive damages, attorney fees and costs. Plaintiffs seek a nationwide class of (i) anyone who allegedly opted into the “risk free” or “no sweat” promotion and lost a bet (with a New York subclass); (ii) anyone who allegedly opened an account and deposited money in response to the new customer 1,000 site credit promotion (with a New York subclass); and (iii) anyone who was allegedly enticed by DraftKings’ VIP hosts to bet beyond their means (with a New York subclass). Plaintiffs also seek a declaration that DraftKings has breached agreements with Apple and Google relating to their respective app stores.
On April 8, 2025, DraftKings filed a motion to dismiss. On April 9, 2025, the court ordered plaintiffs to file an amended complaint, if any, and on May 16, 2025, plaintiffs filed an amended putative class action complaint on behalf of Clara De Leon, Eric Mirsberger Jr., Joseph Mitchell, and Edward Mendez (the “First Amended Complaint”). In addition to the claims and theories set forth in the Original Complaint, the First Amended Complaint asserts additional causes of action, including alleged breaches of fiduciary duty and product liability claims based on theories of design defect and failure to warn. On June 20, 2025, DraftKings filed a motion to dismiss. The District Court granted the motion to dismiss on December 11, 2025, and entered judgment on February 2, 2026.
The Company intends to vigorously defend this case. Any adverse outcome in this matter could subject the Company to substantial damages and/or require alterations to the Company’s business. The Company cannot provide any assurance as to the outcome of this matter.
The Company cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages. The Company also cannot provide an estimate of the possible loss or range of loss. Any adverse outcome in this matter could expose the Company to substantial damages or penalties that may have a material adverse impact on the Company’s operations and cash flows.
Winview II
On February 10, 2025, Winview IP Holdings, LLC (“Winview IP”) filed suit against DraftKings Inc., a Nevada corporation, DK Crown Holdings Inc., Crown Gaming Inc., SBTech US Inc., and SBTech (Global) Ltd. in the United States District Court for the District of New Jersey. In the complaint, Winview IP alleges that the defendants infringe nine patents: U.S. Patent No. 11,185,770 (“the ’770 Patent”), entitled “Methodology for equalizing systemic latencies in television reception in connection with games of skill played in connection with live television programming,” U.S. Patent No. 11,235,237 (“the ’237 Patent”), entitled “Methodology for equalizing systemic latencies in television reception in connection with games of skill played in connection with live television programming,” U.S. Patent No. 11,338,189 (“the ’189 Patent”), entitled “Method of and system for conducting multiple contests of skill with a single performance,” U.S. Patent No. 11,451,883 (“the ’883 Patent”), entitled “Method of and system for managing client resources and assets for activities on computing devices,” U.S. Patent No. 11,678,020 (“the ’020 Patent”), entitled “Methodology for equalizing systemic latencies in television reception in connection with games of skill played in connection with live television programming,” U.S. Patent No. 11,736,771 (“the ’771 Patent”), entitled “Methodology for equalizing systemic latencies in television reception in connection with games of skill played in connection with live television programming,” U.S. Patent No. 11,918,880 (“the ’880 Patent”), entitled “Method of and system for conducting multiple contests of skill with a single performance,” U.S. Patent No. 11,951,402 (“the ’402 Patent”), entitled “Method of and system for conducting multiple contests of skill with a single performance,” and U.S. Patent No. 12,005,349 (“the ’349 Patent”), entitled “Synchronized gaming and programming.” The allegations based on: the ’770 Patent are directed to DK Sportsbook, DK Casino, and DK Horse; the ’237 Patent are directed to DK Sportsbook and DK Horse; the ’189 Patent are directed to Fantasy and Pick6; the ’883 Patent are directed to DK Sportsbook, DK Horse, DK Casino, Fantasy, and Pick6; the ’020 Patent are directed to DK Sportsbook, DK Horse, and DK Casino; the ’771 Patent are directed to DK Sportsbook, DK Horse, and DK Casino; the ’880 Patent are directed to Fantasy and Pick6; the ’402 Patent are directed to Fantasy and Pick6; and the ’349 Patent are directed to DK Sportsbook, DK Horse, and DK Casino.
On August 18, 2025, DraftKings filed its motion to dismiss Winview’s direct infringement claims of the ’883 patent, all claims against DK Casino and DK Horse, as well as Winview’s claims for willful, induced, and contributory infringement for all nine patents-in-suit.
On January 16, 2026, DraftKings filed petitions for IPRs with the PTAB challenging the validity of the ’883 Patent and the ’189 Patent.
On January 20, 2026, DraftKings informed the District Court of the filing of the IPR petitions, and on January 21, 2026, the Court entered an order staying DraftKings’ motion to dismiss pending the final resolution of the IPRs through final written decision of the PTAB.
We intend to vigorously defend this case. In the event that a court ultimately determines that we are infringing the asserted patents, we may be subject to substantial damages, which may include treble damages and/or an injunction that could require us to modify certain features that we currently offer.
We cannot predict with any degree of certainty the outcome of this matter or determine the extent of any potential liabilities. We also cannot provide an estimate of the possible loss or range of loss. Any adverse outcome in this matter could expose the Company to substantial damages or penalties that may have a material adverse impact on the Company’s operations and cash flows.
DC Gambling Recovery LLC v. Caesars et al.

On February 28, 2025, DC Gambling Recovery LLC filed a lawsuit against DraftKings, Caesars, FanDuel, BetMGM, and Fanatics in state court in the District of Columbia. On April 4, 2025, the defendants removed the lawsuit to the United States District Court for the District of Columbia. Plaintiff alleges that the defendants violated the Statute of Anne (D.C. Code § 16-1702), a statute which purportedly allows an individual to recover their betting losses greater than twenty-five dollars from each sportsbook, and should such party fail to sue within three months, the statute purportedly authorizes any person to file suit against the sportsbook to recover the losses (including treble damages). Plaintiff also alleges that the U.S. Supreme Court’s 2018 decision striking down the Professional and Amateur Sports Protection Act (“PASPA”) does not apply to the District of Columbia and, therefore, the Sports Wagering Lottery Amendment Act (“SWLAA”), a 2019 law that legalized sports betting in the District of Columbia, is without any legal force or effect. Plaintiff also alleges that the Statute of Anne permits recovery of betting losses greater than twenty-five dollars even if the SWLAA has legal force or effect. Plaintiff seeks to recover on behalf of all individuals within the District of Columbia that have (i) lost more than $25 at any single time or sitting by sports betting with DraftKings and (ii) not sued to recover those losses within three months of payment to DraftKings.
On May 5, 2025, DraftKings filed a motion to dismiss the complaint. On May 14, 2025, the court granted the District of Columbia’s motion to intervene. On June 16, 2025, plaintiff filed its opposition to defendants’ motions to dismiss; on June 23,
2025, the District of Columbia filed a brief in support of defendants’ motion to dismiss; on July 7 2025, DraftKings filed its reply in support of its motion to dismiss and plaintiff filed its response to the District of Columbia’s brief; and on July 14, 2025, the District of Columbia filed its reply. On September 24, 2025, the District of Columbia notified the court that the D.C. Council had amended D.C. Code § 16-1702 to clarify that it does not apply to sports betting authorized under the SWLAA, and that the amendment would become permanent after review by Congress. On September 29, 2025, plaintiff filed a response arguing that the amendment violated PASPA. On March 26, 2026, the District Court dismissed the complaint with prejudice, concluding that it was barred by the amendment to D.C. Code § 16-1702. Plaintiff filed its notice of appeal to the United States Court of Appeals for the District of Columbia Circuit on April 9, 2026.
The Company intends to vigorously defend this case. Any adverse outcome in this matter could subject the Company to substantial damages and/or require alterations to the Company’s business. The Company cannot provide any assurance as to the outcome of this matter.
The Company cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages. The Company also cannot provide an estimate of the possible loss or range of loss. Any adverse outcome in this matter could expose the Company to substantial damages or penalties that may have a material adverse impact on the Company’s operations and cash flows.
City of Baltimore

On April 3, 2025, the City of Baltimore filed a lawsuit against DraftKings and FanDuel seeking civil penalties and injunctive relief under Baltimore City Code Art. 2, Section 4. The City alleges that DraftKings violated Baltimore City Code Art. 2, section 4 by committing unfair, abusive and deceptive trade practices by allegedly (i) using data to allegedly target vulnerable Baltimore users; (ii) using misleading promotions such as “bonus bets” or “no-sweat bets;” (iii) concealing or misrepresenting the terms and conditions of those promotions; (iv) using data to identify Baltimore users with an alleged gaming disorder and then directing promotions at them; (v) directing messages with misleading urgency to those who allegedly may have gaming disorders; (vi) using the VIP program to allegedly exploit people with alleged gaming disorders; (vii) offering escalating rewards through its VIP program to target alleged users with gaming disorders; and (viii) failing to implement responsible gaming measures. The City of Baltimore seeks injunctive relief and statutory penalties for each violation of Baltimore City Code Art. 2, section 4.
On May 7, 2025, the defendants removed the lawsuit from state court to the United States District Court for the District of Maryland (Northern Division). On June 6, 2025, the City filed a motion to remand the case to state court. On November 10, 2025, the Court granted the plaintiff’s motion to remand. On November 12, 2025, defendants filed a notice of appeal of the remand order, and on November 13, 2025, the state court stayed and administratively closed the case, subject to reopening once the appeal has been adjudicated. On January 28, 2026, the defendants filed their opening appellate brief. The City filed its response on February 23, 2026, and the defendants filed their reply on March 19, 2026. The appeal remains pending.
The Company intends to vigorously defend this case. Any adverse outcome in this matter could subject the Company to substantial damages and/or require alterations to the Company’s business. The Company cannot provide any assurance as to the outcome of this matter.
The Company cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages. The Company also cannot provide an estimate of the possible loss or range of loss. Any adverse outcome in this matter could expose the Company to substantial damages or penalties that may have a material adverse impact on the Company’s operations and cash flows.
Macek I

On April 18, 2025, plaintiffs Kenneth Macek, Matthew Harner, Avi Setton, Lionel Alicea, and Robert Walker, individually and on behalf of all others similarly situated, filed a purported class action complaint against DraftKings Inc., Crown PA Gaming Inc. dba DraftKings, and Golden Nugget Online Gaming LLC in the United States District Court, Eastern District of Pennsylvania. Among other things, plaintiffs allege that the Company’s “risk-free” and “no sweat” promotions, and the promotion that offered new customers an opportunity to earn up to 1,000 site credits as a sportsbook deposit match, as well as promotions that offered site credits in connection with a casino deposit match, were unfair, unconscionable, and misleading (collectively, the “Promotions Claims”). Plaintiffs also allege that DraftKings targets players with gaming addiction issues, including by assigning certain players with VIP hosts. Plaintiffs assert causes of action for violation of the Pennsylvania Unfair Trade Practices and Consumer Protection Law, negligence, intentional misrepresentation, failure to warn, fraudulent
inducement, unjust enrichment, intentional infliction of emotional distress and conversion. Plaintiffs seek, among other things, unspecified compensatory damages, punitive damages, attorney fees and costs. Plaintiffs seek to certify a nationwide class relating to the Promotions Claims, of: (i) anyone who participated in the casino deposit match promotion and lost part or all of their initial deposit (with a Pennsylvania subclass); (ii) anyone who allegedly opted into the “risk free” or “no sweat” promotion (with a Pennsylvania subclass); and (iii) anyone who allegedly deposited money in response to the 1,000 new customer sportsbook deposit match promotion (with a Pennsylvania subclass). Plaintiffs also seek to certify a class relating to alleged addiction claims, of (i) anyone who developed or displayed problem gaming behavior and was allegedly targeted by DraftKings’ VIP hosts or promotions or otherwise induced to game or continue to game (with a Pennsylvania subclass); and (ii) anyone who was allegedly permitted to continue gaming after self-excluding or who asked DraftKings to suspend or close their account (with a Pennsylvania subclass).
On June 24, 2025, defendants filed a motion to dismiss. In response, on July 15, 2025, plaintiffs filed a first amended complaint (the “First Amended Complaint”), removing plaintiff Walker and adding new plaintiffs Shane Spencer and Rangaraj Sadagopan. The First Amended Complaint removed all of the allegations, purported classes, and causes of action relating to the Promotions Claims.
The First Amended Complaint only alleges claims and causes of action relating to alleged addiction matters, as follows: negligence, breach of fiduciary duty, unjust enrichment, intentional infliction of emotional distress, and strict and negligent products liability. The First Amended Complaint also contains individual claims for breach of contract and conversion based on the closure of plaintiff Setton’s account. In the First Amended Complaint, plaintiffs seek, among other things, unspecified compensatory damages, punitive damages, attorney fees and costs. Plaintiffs seek to certify a nationwide class of (i) anyone who developed or displayed problem gaming behavior and was allegedly targeted by DraftKings’ VIP hosts or otherwise induced to game or continue to game (with a Pennsylvania subclass); (ii) anyone who was allegedly permitted to continue gaming after asking DraftKings to suspend or close their account (with a Pennsylvania subclass); and (iii) anyone who was exposed to the allegedly dangerous design of features of DraftKings’ app and could not control their compulsive gaming (with a Pennsylvania subclass).
On July 29, 2025, DraftKings filed a motion to dismiss. On March 23, 2026, the District Court granted the motion as to all claims and dismissed all claims with prejudice (except for a conversion claim of one plaintiff, which it transferred to Pennsylvania state court), and ordered the case closed. On April 17, 2026, plaintiffs filed a notice of appeal.
The Company intends to vigorously defend this case. Any adverse outcome in this matter could subject the Company to substantial damages and/or require alterations to the Company’s business. The Company cannot provide any assurance as to the outcome of this matter.
The Company cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages. The Company also cannot provide an estimate of the possible loss or range of loss. Any adverse outcome in this matter could expose the Company to substantial damages or penalties that may have a material adverse impact on the Company’s operations and cash flows.
Macek II

On July 15, 2025, plaintiffs Kenneth Macek, Matthew Harner, Avi Setton, Lionel Alicea, and Robert Walker, individually and on behalf of all others similarly situated, filed a purported class action complaint against DraftKings Inc., Crown PA Gaming Inc. dba DraftKings, and Golden Nugget Online Gaming LLC in the United States District Court, Eastern District of Pennsylvania. Among other things, plaintiffs allege that the Company’s “risk-free” and “no sweat” promotions, and the promotion that offered new customers an opportunity to earn up to 1,000 site credits as a sportsbook deposit match, as well as promotions that offered site credits in connection with a casino deposit match, were unfair, unconscionable, and misleading. Plaintiffs seek, among other things, unspecified compensatory damages, punitive damages, attorney fees and costs. Plaintiffs seek to certify a nationwide class of (i) anyone who participated in DraftKings or Golden Nugget’s casino deposit match promotion and lost part or all of their initial deposit (with a Pennsylvania subclass); (ii) anyone who allegedly opted into DraftKings’ “risk free” or “no sweat” promotion and lost their bet (with a Pennsylvania subclass); and (iii) anyone who allegedly deposited money in response to DraftKings’ $1,000 new customer sportsbook deposit match promotion (with a Pennsylvania subclass). Plaintiffs bring consumer protection, fraud, and unjust enrichment claims.
On September 16, 2025, DraftKings filed its motion to dismiss. On September 30, 2025, plaintiffs filed their response, in which they withdrew two of their three fraud claims and their request for injunctive relief. On October 7, 2025, DraftKings filed its reply. Also on September 16, 2025, DraftKings filed a motion to consolidate Macek I and Macek II for all purposes.
On April 8, 2026, the District Court granted in part and denied in part DraftKings’ motion to dismiss. The District Court granted the motion to dismiss as to the Unfair Trade Practices and Consumer Protection La (“UTPCPL”) (consumer protection) claim relating to the Casino Deposit Match Promotion (Count I) without prejudice for failure to plead an “ascertainable loss.” The District Court granted the motion to dismiss the intentional misrepresentation claims as to the Casino Deposit Promotion (Count II) with prejudice as to two plaintiffs (Macek and Setton), without prejudice as to one plaintiff (Harner), and denied the motion as to a fourth plaintiff (Alicea). The District Court denied the motion to dismiss the UTPCPL claim as to the Risk-Free and No Sweat Promotions as to all plaintiffs (Count III). The District Court granted the motion to dismiss the UTPCPL claim relating to the $1,000 Sportsbook Deposit Promotion (Count IV) without prejudice for failure to plead an “ascertainable loss”. The District Court granted the motion to dismiss the intentional misrepresentation claims related to the Risk-Free and No Sweat Promotion (Count V) and the $1,000 Sportsbook Deposit Promotion (Count VI) with prejudice as time-barred. The District Court granted the motion to dismiss the unjust enrichment claim (Count VII) to the extent based on the $1,000 Sportsbook Deposit Promotion without prejudice but not as to the Casino Deposit Match Promotion and Risk-Free and No Sweat Promotion. The Court denied the motion to consolidate as moot given that it granted the motion to dismiss Macek I. The District Court gave plaintiffs leave to file an amended complaint by May 13, 2026.
The Company intends to vigorously defend this case. Any adverse outcome in this matter could subject the Company to substantial damages and/or require alterations to the Company’s business. The Company cannot provide any assurance as to the outcome of this matter.
The Company cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages. The Company also cannot provide an estimate of the possible loss or range of loss. Any adverse outcome in this matter could expose the Company to substantial damages or penalties that may have a material adverse impact on the Company’s operations and cash flows.
Moore (now Zhen v. DraftKings Inc.)

On June 1, 2025, plaintiffs Brandon Moore, Zhicheng Zhen, and Jonathan Smith, individually and on behalf of all others similarly situated, filed a purported class action complaint against DraftKings Inc. and Doe defendants in the United States District Court, Northern District of California. Among other things, plaintiffs allege that DraftKings has been operating illegal online gambling platforms in California through its “Daily Fantasy Sports” and “Pick6” contests in violation of California law. Plaintiffs claim that these contests amount to unlawful lotteries, games of chance, or sports betting and that DraftKings falsely represents these services as lawful in California, including through misleading public statements and platform disclosures.
Plaintiffs bring claims under California’s Unfair Competition Law and Consumer Legal Remedies Act, and seek, among other things, injunctive relief, restitution, disgorgement, and attorneys’ fees and costs. Plaintiffs seek to represent a purported class of all California residents who allegedly placed a bet or wager on DraftKings’ alleged Daily Fantasy Sports and Pick6 gambling websites while physically located in California. On July 11, 2025, plaintiffs filed a Notice Regarding Legal Opinion Issued By The California Attorney General enclosing an opinion from the California Attorney General (Opinion No. 23-1001) in which the California Attorney General opined that “California law prohibits the operation of daily fantasy sports games with players physically located within California.” On July 14, 2025, two other actions pending in the Northern District of California were referred sua sponte by the court to the Judge assigned to Moore for determination on whether such actions should be related under Civil Local Rule 3-12(e) (Beltran v. FanDuel, Inc., Case No. 25-cv-5586-JSC; Head v. Underdog Sports, LLC, Case No. 25-cv-5542-JST). On July 16, 2025, the court referred sua sponte a third pending action for the same determination (Franks v. Prize Picks, Case No. 25-cv-4916-JD). On July 24, 2025, the court assigned to Moore held that those three actions were related to Moore and assigned all three cases to that court. On August 1, 2025, plaintiff Moore voluntarily dismissed his case without prejudice; and upon motion by the plaintiff, the Court ordered that the case is now entitled Zhen v. DraftKings. On August 11, 2025, DraftKings filed its motion to dismiss, and on December 19, 2025, the court granted the motion to dismiss without prejudice.
On January 20, 2026, plaintiffs filed a first amended complaint that adds four new defendants: Crown Gaming, Inc. and three individuals (Jason Robins, Matthew Kalish, and Paul Liberman) (the “First Amended Complaint”), in addition to DraftKings. Plaintiffs’ First Amended Complaint asserts nine causes of action arising from DraftKings’ alleged operation and marketing of its Daily Fantasy Sports and Pick6 offerings to users located in California. Plaintiffs bring claims under California’s Unfair Competition Law and the Consumer Legal Remedies Act, and they added federal civil RICO claims under 18 U.S.C. §§ 1962(c) and 1962(d) (with civil remedies under § 1964(c)) asserted both against the three individual defendants and separately against all defendants (DraftKings Inc., Crown Gaming, Inc., and those individuals). Plaintiffs also assert a gambling-loss recovery claim based on Cal. Civ. Code § 22.2 and the “Statute of Anne,” a claim under Cal. Penal Code § 496 (receipt of stolen property), and a claim for declaratory relief (28 U.S.C. § 2201). Plaintiffs seek injunctive and declaratory
relief, restitution and other equitable relief, and, as pleaded, damages. On March 30, 2026, DraftKings and the newly added defendants filed motions to dismiss the First Amended Complaint, which motions remain pending.
The Company intends to vigorously defend this case. Any adverse outcome in this matter could subject the Company to substantial damages and/or require alterations to the Company’s business. The Company cannot provide any assurance as to the outcome of this matter.
The Company cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages. The Company also cannot provide an estimate of the possible loss or range of loss. Any adverse outcome in this matter could expose the Company to substantial damages or penalties that may have a material adverse impact on the Company’s operations and cash flows.
Micro-Gaming

On May 9, 2025, Micro-Gaming Ventures, LLC (“Micro-Gaming”) filed suit against DraftKings Inc. in the United States District Court for the District of New Jersey. In the complaint, Micro-Gaming alleges that the Company infringes five patents: (1) U.S. Patent No. 8,545,311, entitled “Systems and methods for enabling remote device users to wager on micro events of games in a data network accessible gaming environment”; (2) U.S. Patent No. 8,632,392, entitled “Systems and methods for enabling remote device users to wager on micro events of games in a data network accessible gaming environment”; (3) U.S. Patent No. 8,734,231, entitled “Systems and methods for enabling remote device users to wager on micro events of games in a data network accessible gaming environment”; (4) U.S. Patent No. 11,783,679, entitled “Location-based wagering via remote devices”; and (5) U.S. Patent No. 12,266,244, entitled “Location-based wagering via remote devices” (collectively, the “Micro-Gaming Patents”). The allegations for all of the Micro-Gaming Patents are directed to the “DraftKings Sportsbook.”
On August 8, 2025, the Company filed its motion to dismiss. On March 30, 2026, the Company’s motion to dismiss was granted with prejudice. On April 24, 2026, Micro-Gaming filed its notice of appeal.
We intend to vigorously defend this case. In the event that a court ultimately determines that we are infringing the asserted patents, we may be subject to substantial damages, which may include treble damages and/or an injunction that could require us to modify certain features that we currently offer.
We cannot predict with any degree of certainty the outcome of this matter or determine the extent of any potential liabilities. We also cannot provide an estimate of the possible loss or range of loss. Any adverse outcome in this matter could expose the Company to substantial damages or penalties that may have a material adverse impact on the Company’s operations and cash flows.
Product Liability Matters

Beginning on March 24, 2026, the first of six lawsuits focused primarily on product liability claims was filed by individual plaintiffs in state courts in Massachusetts and Pennsylvania against DraftKings Inc., FanDuel, Inc., and related individuals and entities, and in certain instances other third parties. The complaints allege, among other things, that DraftKings’ online betting platforms are defectively designed and unreasonably dangerous because they allegedly incorporate features intended to encourage continuous betting and compulsive gaming. Plaintiffs also allege that the DraftKings defendants failed to adequately warn users about the risks associated with the use of the platforms and engaged in deceptive and unfair conduct through the use of, among other things, targeted promotions and wagering opportunities, notifications, data-driven personalization, and “VIP” programs. The complaints assert various claims under state tort and statutory laws and assert claims for personal monetary losses and actual, compensatory, statutory and/or punitive damages for alleged emotional, financial and physical harms. The cases are at an early stage, and DraftKings has not yet responded to the complaints.
The Company intends to vigorously defend these cases. Any adverse outcome in any one of these matters could subject the Company to substantial damages and/or require alterations to the Company’s business. The Company cannot provide any assurance as to the outcome of any one of these matters.
The Company cannot predict with any degree of certainty the outcome of these suits or determine the extent of any potential liability or damages. The Company also cannot provide an estimate of the possible losses or ranges of losses. Any adverse outcome in one of these matters could expose the Company to substantial damages that may have a material adverse impact on the Company’s operations and cash flows.
Interactive Games II
On April 2, 2026, Interactive Games LLC (“Interactive Games”) filed a complaint against DraftKings Inc. in the United States District Court for the District of Massachusetts alleging that DraftKings’ offerings infringe five patents. The following U.S. Patents are asserted against DraftKings’ mobile apps in the complaint: (1) U.S. Patent No. 12,409,382, entitled “Smart phone with wrapper application that checks whether the smart phone may use a gambling application”; (2) U.S. Patent No. 8,974,302, entitled “Multi-process communication regarding gaming information”; (3) U.S. Patent No. 12,548,404, entitled “Multi-level device verification for mobile gambling applications”; (4) U.S. Patent No. 12,400,518, entitled “System for facilitating online wagering with nearby mobile phones”; and (5) U.S. Patent No. 12,406,284, entitled “Mobile device proximity tracking for selective content delivery and formatting” (collectively, the “Interactive Games Patents”). The Company has not yet responded to the complaint.
We intend to vigorously defend this case. In the event that a court ultimately determines that we are infringing the asserted patents, we may be subject to substantial damages, which may include treble damages and/or an injunction that could require us to modify certain features that we currently offer.
We cannot predict with any degree of certainty the outcome of this matter or determine the extent of any potential liabilities. We also cannot provide an estimate of the possible loss or range of loss. Any adverse outcome in this matter could expose the Company to substantial damages or penalties that may have a material adverse impact on the Company’s operations and cash flows.
Farley

On April 27, 2026, plaintiffs John Farley and Michael Fox, individually and on behalf of all others similarly situated, filed a purported class action complaint against DraftKings Inc. and certain FanDuel-related entities in the United States District Court for the Southern District of New York.
The plaintiffs allege, among other things, that DraftKings’ online sports wagering platform is improperly designed and unreasonably dangerous because it allegedly incorporates features intended to encourage compulsive gaming. Plaintiffs further allege that DraftKings engaged in deceptive and unfair conduct through the use of targeted promotions, bonus bet promotions, repeated notifications, and data-driven personalization.
Plaintiffs assert claims for violation of New York General Business Law §§ 349 and 350, negligence, and unjust enrichment. Plaintiffs seek, among other things, unspecified compensatory damages, restitution, disgorgement, injunctive relief, attorneys’ fees and costs. Plaintiffs seek to certify a nationwide class and a New York subclass of users who allegedly maintained sportsbook accounts on defendants’ sportsbook platforms, were exposed to their promotions, live or in-game betting features, or repeated wagering communications and who deposited money, placed wagers or suffered losses on the platforms.
The Company intends to vigorously defend this case. Any adverse outcome in this matter could subject the Company to substantial damages and/or require alterations to the Company’s business. The Company cannot provide any assurance as to the outcome of this matter.
The Company cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages. The Company also cannot provide an estimate of the possible loss or range of loss. Any adverse outcome in this matter could expose the Company to substantial damages or penalties that may have a material adverse impact on the Company’s operations and cash flows.
Other Litigation

In addition to the above actions, we are subject to various other legal proceedings and claims that arise in the ordinary course of business. In our opinion, the amount of ultimate liability with respect to any of these actions is unlikely to materially affect our financial condition, results of operations or liquidity, though the outcomes could be material to our operating results for any particular period, depending, in part, upon the operating results for such period.
Internal Revenue Service

The Company is currently under Internal Revenue Service audit for prior tax years, with the primary unresolved issues relating to excise taxation of fantasy sports contests and informational reporting and withholding. Certain examinations have progressed further in the administrative process. The Company continues to dispute the assessments and is actively pursuing
administrative remedies and intends to vigorously defend its positions. The Company is unable to predict the outcome of these proceedings at this time and cannot reasonably estimate the potential loss or range of loss, if any. The final resolution of these audits, and any related proceedings, may differ from the amounts recorded in these consolidated financial statements and may materially affect the Company’s results of operations in the period or periods in which that determination is made.
v3.26.1
Insider Trading Arrangements
 3 Months Ended
Mar. 31, 2026
shares
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
R. Stanton Dodge [Member]  
Trading Arrangements, by Individual  
Material Terms of Trading Arrangement
On March 3, 2026, our Chief Legal Officer, R. Stanton Dodge, entered into a trading arrangement designed to satisfy the affirmative defense conditions of Rule 10b5-1 under the Exchange Act (the “Dodge 10b5-1 Plan”). The Dodge 10b5-1 Plan provides for the sale of up to 1,500,000 shares of the Company’s Class A common stock and terminates on the earlier of (i) the completion of all sales under the Dodge 10b5-1 Plan and (ii) October 29, 2027.
Name R. Stanton Dodge
Title Chief Legal Officer
Rule 10b5-1 Arrangement Adopted true
Adoption Date March 3, 2026
Expiration Date October 29, 2027
Arrangement Duration 605 days
Aggregate Available 1,500,000
Jason Robins [Member]  
Trading Arrangements, by Individual  
Material Terms of Trading Arrangement
On March 4, 2026, our Chief Executive Officer and a member of our Board of Directors, Jason Robins, entered into a prepaid variable forward sale contract with an unaffiliated third-party buyer, which may constitute a non-Rule 10b5-1 trading arrangement (the “Robins PVF Contract”). The Robins PVF Contract obligates Mr. Robins to deliver to such unaffiliated third-party buyer up to an aggregate of 2,131,004 shares of our Class A common stock following the March 6, 2029 maturity date.
Name Jason Robins
Title Chief Executive Officer and a member of our Board of Directors
Non-Rule 10b5-1 Arrangement Adopted true
Adoption Date March 4, 2026
Expiration Date March 6, 2029
Arrangement Duration 1098 days
Aggregate Available 2,131,004
v3.26.1
Summary of Significant Accounting Policies and Practices (Policies)
 3 Months Ended
Mar. 31, 2026
Accounting Policies [Abstract]  
Basis of Presentation These unaudited condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) and accounting principles generally accepted in the United States (“U.S. GAAP”) for interim reporting. As such, certain notes or other information that are normally required by U.S. GAAP have been omitted if they substantially duplicate the disclosures contained in the Company’s annual audited consolidated financial statements. Accordingly, these unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited financial statements and related notes as of and for the fiscal year ended December 31, 2025, which are included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025, as filed with the SEC on February 13, 2026 (the “2025 Annual Report”). These condensed consolidated financial statements are unaudited; however, in the opinion of management, they include all normal and recurring adjustments necessary for a fair presentation of the Company’s condensed consolidated financial statements for the periods presented. Results of operations reported for interim periods are not necessarily indicative of results for the entire year, due to seasonal fluctuations in the Company’s revenue as a result of the timing of various sports seasons, sporting events, and other factors.
Principles of Consolidation All intercompany accounts and transactions are eliminated upon consolidation. Certain amounts, which are not material, in the prior year’s consolidated financial statements have been reclassified to conform to the current year’s presentation.
Recently Issued Accounting Pronouncements Not Yet Adopted
Recently Issued Accounting Pronouncements Not Yet Adopted

In November 2024, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2024-03, Income Statement–Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (“ASU 2024-03”), which requires disaggregated disclosure of income statement expenses. ASU 2024-03 does not change the expense captions an entity presents on the face of the income statement; rather, it requires disaggregation of certain expense captions into specified categories in disclosures within the footnotes to the financial statements. ASU 2024-03 is effective for public business entities for annual periods beginning after December 15, 2026, with early adoption permitted. We are currently evaluating the impact of this standard on our disclosure of income statement expenses.
In September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software (“ASU 2025-06”). ASU 2025-06 changes the accounting for internal-use software under Accounting Standards Codification (“ASC”) 350-40. ASU 2025-06 clarifies when to begin capitalizing costs. ASU 2025-06 is effective for interim and annual periods beginning after December 15, 2027, with early adoption permitted. We are currently evaluating the impact of this standard and do not expect this standard to have a material impact on our consolidated financial statements.
In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements (“ASU 2025-11”). ASU 2025-11 clarifies the applicability of interim reporting guidance and reorganizes and clarifies interim disclosure requirements under ASC 270, including the addition of a disclosure principle requiring disclosure of material events occurring since the most recent annual reporting period. ASU 2025-11 is effective for interim reporting periods within annual periods beginning after December 15, 2027, with early adoption permitted. We are currently evaluating the impact of this standard and do not expect this standard to have a material impact on our consolidated financial statements.
In December 2025, the FASB issued ASU 2025-12, Codification Improvements (“ASU 2025-12”). ASU 2025-12 makes targeted amendments to various topics within the Accounting Standards Codification intended to clarify existing guidance and correct minor inconsistencies. ASU 2025-12 is effective for interim and annual reporting periods beginning after December 15, 2026, with early adoption permitted. Certain amendments require retrospective application. We are currently evaluating the impact of this standard and do not expect this standard to have a material impact on our consolidated financial statements.
v3.26.1
Business Combinations (Tables)
 3 Months Ended
Mar. 31, 2026
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]  
Summary of Consideration Transferred at Closing The following is a summary of the consideration issued or paid on the Railbird Acquisition Date:
Cash consideration$18,296 
Equity consideration (1)
28,708 
Contingent consideration (2)
37,785 
Total consideration$84,789 

(1)Includes the issuance of approximately 0.9 million shares of DraftKings Inc.’s Class A common stock issued at $33.62 per share.
(2)The Company recorded a fair value estimate of the contingent consideration, as disclosed in “Note 6 – Fair Value Measurements”. Contingent payments have a maximum value of up to $200 million, 47.5% of which will be contingent consideration and 52.5% of which will be recorded as compensation under ASC 805. The payments will be settled, at the Company’s option, in shares of the Company’s Class A common stock or in a combination of shares of the Company’s Class A common stock and cash; provided that, for each Railbird equityholder that is an accredited investor, shares of the Company’s Class A common stock will represent at least 70% of the contingent consideration such equityholder receives. The Company’s Class A common stock to be issued as contingent payment will be valued on the basis of a 30-day volume-weighted average price of the Company’s Class A common stock determined at or around the issuance thereof based on certain post-closing performance metrics.
Summary of Acquisition Purchase Price
The following table summarizes the preliminary fair value of the assets acquired and liabilities assumed in connection with the consummation of the Railbird Transaction on the Railbird Acquisition Date. The values set forth below are preliminary, pending finalization of valuation analyses:
Assets acquired:
Cash and cash equivalents$181 
Restricted cash1,734 
Intangible assets58,090 
Deposits and other non-current assets6 
Total identifiable assets acquired60,011 
Liabilities assumed:
Accounts payable and accrued expenses52 
Other long-term liabilities15,365 
Total liabilities assumed15,417 
Net assets acquired (a)44,594 
Purchase consideration (b)$84,789 
Goodwill (b) – (a)$40,195 
v3.26.1
Intangible Assets (Tables)
 3 Months Ended
Mar. 31, 2026
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Intangible Assets, Finite-Lived
As of March 31, 2026, intangible assets, net consists of the following:
Weighted-Average Remaining Amortization PeriodGross Carrying AmountAccumulated AmortizationNet
Amortized intangible assets:
Developed technology3.3 years$586,410 $(358,707)$227,703 
Internally developed software2.3 years514,011 (274,326)239,685 
Gaming market access and licenses6.5 years288,585 (100,611)187,974 
Customer relationships5.3 years344,000 (154,285)189,715 
Trademarks, tradenames and other4.9 years43,420 (20,436)22,984 
Total$1,776,426 $(908,365)$868,061 
As of December 31, 2025, intangible assets, net consists of the following:
Weighted-Average Remaining Amortization PeriodGross Carrying AmountAccumulated AmortizationNet
Amortized intangible assets:
Developed technology3.4 years$586,409 $(338,358)$248,051 
Internally developed software2.3 years475,814 (254,285)221,529 
Gaming market access and licenses 6.7 years287,524 (91,575)195,949 
Customer relationships5.5 years344,000 (144,326)199,674 
Trademarks, tradenames and other5.1 years43,120 (19,122)23,998 
Total$1,736,867 $(847,666)$889,201 
v3.26.1
Current and Long-term Liabilities (Tables)
 3 Months Ended
Mar. 31, 2026
Current and Long-term Liabilities  
Schedule of Maturities of Long-Term Debt
As of March 31, 2026, the future principal payments for the Term B Loan and Convertible Notes were as follows:
Years Ending December 31,
April 1, 2026 to December 31, 2026$4,444 
20275,874 
20281,270,815 
20295,757 
20305,700 
Thereafter566,432 
Total$1,859,022 
v3.26.1
Fair Value Measurements (Tables)
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
Summary of Assets and Liabilities Measured at Fair Value
The following tables set forth the fair value of the Company’s financial assets and liabilities measured at fair value as of March 31, 2026 and December 31, 2025 based on the three-tier fair value hierarchy:
March 31, 2026
Level 1Level 2Level 3Total
Assets
Cash equivalents:
Money market funds$185,852 $— $— $185,852 
Other non-current assets:
Derivative instruments$— $— $7,059 
(2)
$7,059 
Equity securities— 9,127 
(1)
— 9,127 
Total$185,852 $9,127 $7,059 $202,038 
Liabilities
Other current liabilities$— $— $10,875 
(3)
$10,875 
Other long-term liabilities— — 39,901 
(3)
39,901 
Total$— $— $50,777 $50,777 

December 31, 2025
Level 1Level 2Level 3Total
Assets
Cash equivalents:
Money market funds$184,212 $— $— $184,212 
Other non-current assets:
Derivative instruments$— $— $7,059 
(2)
$7,059 
Equity securities— 9,127 
(1)
— 9,127 
Total$184,212 $9,127 $7,059 $200,398 
Liabilities
Other current liabilities$— $— $14,900 
(3)
$14,900 
Other long-term liabilities— — 59,534 
(3)
59,534 
Total$— $— $74,434 $74,434 

(1)Represents the Company’s non-marketable equity securities, which are classified as Level 2 because the Company measures these assets to fair value using observable inputs for similar investments of the same issuer. The Company has elected the remeasurement alternative for these assets.
(2)Represents the Company’s derivative instruments held in other public and privately held entities. The Company measures these derivative instruments to fair value using option pricing models and, accordingly, classifies these assets as Level 3. There were no new Level 3 derivative instruments sold, purchased by or issued to the Company during the three months ended March 31, 2026. The table below includes a range and an average weighted by relative fair value of the significant unobservable inputs used to measure these Level 3 derivative instruments to fair value. The key inputs to the valuations are underlying stock price, volatility and risk free rate. A change in these significant unobservable inputs might result in a significantly higher or lower fair value measurement at the reporting date. Changes to fair value of these instruments are recorded in Other gain (loss), net on the condensed consolidated statements of operations.
(3)Represents the contingent consideration issuable to former Sports IQ Analytics Inc. (“SIQ”), Dijon Systems Limited (“Dijon”), Simplebet, Inc. (“Simplebet”) and Railbird equityholders in connection with the acquisition of SIQ, acquisition of Dijon, acquisition of Simplebet and the Railbird Transaction, respectively, upon the achievement of certain performance targets. The fair value of contingent consideration was generally calculated using customary valuation models based on probability-weighted outcomes of meeting certain future performance targets and forecasted results. The Company classified the contingent consideration liabilities as a Level 3 fair value measurement due to the lack of observable inputs used in the model. The key inputs to the valuations are the projections of future financial results in relation to the business, revenue risk premium, revenue volatility, and operational leverage ratio as well as management judgment regarding the probability of achieving a future performance target. The table below includes a range and an average weighted by relative fair value of the significant unobservable inputs used to measure contingent consideration at fair value. A change in these significant unobservable inputs might result in a significantly higher or lower fair value measurement at the reporting date.
Changes to fair value of these instruments are recorded in Other gain (loss), net on the condensed consolidated statements of operations.
March 31, 2026December 31, 2025
Significant Unobservable Inputs of Level 3 InvestmentsRange (Weighted Average)Range (Weighted Average)
Revenue volatility
10.6% - 18.9% (16.9%)
10.6% - 17.3% (15.3%)
Equity volatility
45.0% - 54.5% (52.1%)
45.0% - 54.2% (51.0%)
Operational leverage ratio
60.0% - 75.0% (67.3%)
61.0% - 75.0% (65.4%)
Summary of Changes in Significant Unobservable Inputs
March 31, 2026December 31, 2025
Significant Unobservable Inputs of Level 3 InvestmentsRange (Weighted Average)Range (Weighted Average)
Revenue volatility
10.6% - 18.9% (16.9%)
10.6% - 17.3% (15.3%)
Equity volatility
45.0% - 54.5% (52.1%)
45.0% - 54.2% (51.0%)
Operational leverage ratio
60.0% - 75.0% (67.3%)
61.0% - 75.0% (65.4%)
Summary of Changes in Fair Value of Contingent Consideration Liabilities Which Reflect Level 3 Inputs
The following table provides a roll forward of the recurring Level 3 fair value liability measurements:

20262025
Opening Balance$74,434 $77,965 
Fair value adjustment to contingent consideration liabilities(23,657)— 
Payment of contingent consideration liabilities— (3,300)
Balance at March 31$50,777 $74,665 
v3.26.1
Revenue Recognition (Tables)
 3 Months Ended
Mar. 31, 2026
Revenue from Contract with Customer [Abstract]  
Summary of Deferred Revenue Balances The deferred revenue balances were as follows:
Three Months Ended March 31,
20262025
Deferred revenue, beginning of the period$174,750 $166,463 
Deferred revenue, end of the period$131,726 $133,700 
Revenue recognized in the period from amounts included in deferred revenue at the beginning of the period$163,837 $140,232 
Summary of Disaggregation of Revenue
Disaggregation of revenue for the three months ended March 31, 2026 and 2025 is as follows:
Three Months Ended March 31,
20262025
Sportsbook$1,094,874 $881,957 
iGaming461,300 423,471 
Other89,902 103,378 
Total Revenue$1,646,076 $1,408,806 
v3.26.1
Stock-Based Compensation (Tables)
 3 Months Ended
Mar. 31, 2026
Share-Based Payment Arrangement [Abstract]  
Summary of Stock Option Activity
The following table shows restricted stock unit (“RSU”) and stock option activity for the three months ended March 31, 2026:
OptionsRSUsTotalWeighted Average Exercise Price of OptionsWeighted Average FMV of RSUs
Time BasedPSPLTIP
Outstanding at December 31, 202518,006 13,584 7,866 409 39,865 $10.03 $31.16 
Granted— 11,789 6,096 — 17,885 — 23.31 
Exercised options / vested RSUs(1,773)(2,440)(584)(204)(5,001)1.87 29.86 
Change in awards due to performance multiplier— — (76)— (76)— 16.12 
Forfeited(5)(506)(20)(16)(547)14.83 32.45 
Outstanding at March 31, 202616,228 22,427 13,282 189 52,126 $10.92 $27.34 
Summary of Stock Compensation Expense The following table shows stock-based compensation expense for the three months ended March 31, 2026 and 2025:
Three Months Ended March 31, 2026Three Months Ended March 31, 2025
OptionsRSUsTotalOptionsRSUsTotal
Time-based (1)
$2,823 $54,828 $57,651 $1,936 $42,692 $44,628 
PSP (2)
— 7,450 7,450 — 33,170 33,170 
LTIP (2)
— 114 114 — 1,048 1,048 
Total$2,823 $62,392 $65,215 $1,936 $76,910 $78,846 
(1) Time-based awards vest and are expensed over a defined service period.
(2) PSP and LTIP awards vest based on defined performance criteria and are expensed based on the probability of achieving such criteria.
v3.26.1
Income Taxes (Tables)
 3 Months Ended
Mar. 31, 2026
Income Tax Disclosure [Abstract]  
Summary of Company's (Benefit) provision for income taxes
The Company’s income tax provision (benefit) for the three months ended March 31, 2026 and 2025 is as follows:
Three Months Ended March 31,
20262025
Income tax provision (benefit)$6,369 $(5,600)
v3.26.1
Segment Information (Tables)
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Summary of Financial Information for the Company's Segments
The following table presents revenue, significant expenses, and net income (loss) for our consolidated segment:
 Three Months Ended March 31,
 20262025
Total revenue$1,646,076 $1,408,806 
Less:
Cost of revenue: Gaming taxes569,531 483,403 
Cost of revenue: Other (1)
313,196 294,609 
Adjusted sales and marketing expenses (2)
391,482 333,198 
Adjusted product and technology expenses (2)
97,617 87,453 
Adjusted general and administrative expenses (2)
106,398 107,513 
Depreciation and amortization71,661 70,116 
Interest (income) expense, net5,739 (4,395)
Stock-based compensation65,215 78,846 
Income tax provision (benefit)6,369 (5,600)
Other segment items (3)
(2,202)(2,473)
Consolidated net income (loss)$21,070 $(33,864)

(1)Cost of revenue: Other includes all cost of revenue, other than gaming tax, presented in the condensed consolidated statements of operations, adjusted for the impact of depreciation and amortization and stock-based compensation.
(2)These items represent the respective line items in the condensed consolidated statements of operations, adjusted for the impact of depreciation and amortization; stock-based compensation; transaction-related costs; certain litigation, settlement and related costs; certain advocacy and other related legal expenses; and other expenses, as further described below.
(3)Other segment items include: (i) transaction-related costs; (ii) certain external legal costs related to litigation and litigation settlement costs deemed unrelated to our ordinary-course business operations; (iii) certain costs relating to advocacy efforts and other legal expenses in jurisdictions where we do not operate certain offerings and are actively seeking licensure, or similar approval, for those offerings, excluding costs relating to advocacy efforts and other legal expenses in jurisdictions where we do not operate that are incurred in the ordinary course of business and costs relating to advocacy efforts and other legal expenses incurred in jurisdictions where related legislation has been passed and we currently operate; (iv) (gain) loss on remeasurement of warrant liabilities; (v) (gain) loss from equity method investments and (vi) other items not associated with our primary offerings, such as gains or losses on contingent consideration, gains or losses on business disposals and termination-related expenses.
v3.26.1
Earnings (Loss) Per Share (Tables)
 3 Months Ended
Mar. 31, 2026
Earnings Per Share [Abstract]  
Summary of Loss Per Share and Weighted-Average Shares
The computation of earnings (loss) per share and weighted-average shares of the Company’s Class A common stock outstanding for the periods presented are as follows:
Three Months Ended March 31,
20262025
Numerator:
Net income (loss) attributable to common stockholders – basic$21,070 $(33,864)
Loss (gain) on remeasurement of contingent consideration(5,329)— 
Net income (loss) attributable to common stockholders – diluted$15,741 $(33,864)
Denominator:
Weighted-average Class A common stock shares outstanding – basic494,351 493,323 
Weighted-average diluted impact of contingent consideration (1)
415 — 
Weighted-average diluted impact of options and RSUs (1)
15,864 — 
Weighted-average Class A common stock outstanding – diluted510,630 493,323 
Basic earnings (loss) per share attributable to common stockholders:$0.04 $(0.07)
Diluted earnings (loss) per share attributable to common stockholders:$0.03 $(0.07)
(1) Calculated using treasury stock method
Summary of Computation of Diluted Shares Outstanding The below table includes the total securities potentially dilutive for the three months ended March 31, 2026 and 2025, which have been excluded from the computation of diluted earnings (loss) per share.
March 31,
20262025
Class A common stock resulting from exercise of all warrants— 1,196 
Stock Options and RSUs9,578 51,200 
Convertible notes13,337 13,337 
Total22,915 65,733 
v3.26.1
Commitments and Contingencies (Tables)
 3 Months Ended
Mar. 31, 2026
Commitments and Contingencies Disclosure [Abstract]  
Summary of Contractual Obligations and Contingencies
The Company is a party to several non-cancelable contracts with vendors where the Company is obligated to make future minimum payments under the terms of these contracts as follows:
Years Ending December 31,
From April 1, 2026 to December 31, 2026$423,777 
2027585,762 
2028495,820 
2029421,211 
2030171,855 
Thereafter40,908 
Total$2,139,333 
v3.26.1
Description of Business (Details)
Mar. 31, 2026
jurisdiction
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Number of jurisdictions with legalized sports betting in which company operates 29
v3.26.1
Business Combinations - Narrative (Details) - Railbird Technologies, Inc. - USD ($)
 3 Months Ended 12 Months Ended
Oct. 21, 2025
Mar. 31, 2026
Mar. 31, 2025
Dec. 31, 2025
Business Acquisition [Line Items]        
Cash consideration $ 18,296,000      
Equity consideration 28,708,000      
Contingent consideration $ 37,785,000      
Equity interest acquired (in percent) 100.00%      
Intangible assets $ 58,090,000      
Transaction costs, expensed   $ 0 $ 0 $ 5,500,000
Gaming market access and licenses        
Business Acquisition [Line Items]        
Amortization period (in years) 4 years      
v3.26.1
Business Combinations - Summary of Consideration Transferred at Closing (Details)
$ / shares in Units, $ in Thousands, shares in Millions
Oct. 21, 2025
USD ($)
$ / shares
shares
Railbird Technologies, Inc.  
Business Acquisition [Line Items]  
Cash consideration $ 18,296
Equity consideration 28,708
Contingent consideration 37,785
Total consideration 84,789
Consideration payments $ 200,000
Percentage of contingent consideration 47.50%
Percentage recorded as compensation 52.50%
Settlement percentage of stock 70.00%
Valuation period (in days) 30 days
Railbird Technologies, Inc. | Class A Common Stock  
Business Acquisition [Line Items]  
Shares consideration (in shares) | shares 0.9
Simplebet, Inc.  
Business Acquisition [Line Items]  
Weighted average fair value (in dollars per share) | $ / shares $ 33.62
v3.26.1
Business Combinations - Summary of Acquisition Purchase Price (Details) - USD ($)
$ in Thousands
Mar. 31, 2026
Dec. 31, 2025
Oct. 21, 2025
Business Acquisition [Line Items]      
Goodwill $ 1,597,647 $ 1,597,647  
Railbird Technologies, Inc.      
Business Acquisition [Line Items]      
Cash and cash equivalents     $ 181
Restricted cash     1,734
Intangible assets     58,090
Deposits and other non-current assets     6
Total identifiable assets acquired     60,011
Accounts payable and accrued expenses     52
Other long-term liabilities     15,365
Total liabilities assumed     15,417
Net assets acquired     44,594
Purchase consideration     84,789
Goodwill     $ 40,195
v3.26.1
Intangible Assets - Schedule of Intangible Assets (Details) - USD ($)
$ in Thousands
Mar. 31, 2026
Dec. 31, 2025
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount $ 1,776,426 $ 1,736,867
Accumulated Amortization (908,365) (847,666)
Net $ 868,061 $ 889,201
Developed technology    
Finite-Lived Intangible Assets [Line Items]    
Weighted-Average Remaining Amortization Period 3 years 3 months 18 days 3 years 4 months 24 days
Gross Carrying Amount $ 586,410 $ 586,409
Accumulated Amortization (358,707) (338,358)
Net $ 227,703 $ 248,051
Internally developed software    
Finite-Lived Intangible Assets [Line Items]    
Weighted-Average Remaining Amortization Period 2 years 3 months 18 days 2 years 3 months 18 days
Gross Carrying Amount $ 514,011 $ 475,814
Accumulated Amortization (274,326) (254,285)
Net $ 239,685 $ 221,529
Gaming market access and licenses    
Finite-Lived Intangible Assets [Line Items]    
Weighted-Average Remaining Amortization Period 6 years 6 months 6 years 8 months 12 days
Gross Carrying Amount $ 288,585 $ 287,524
Accumulated Amortization (100,611) (91,575)
Net $ 187,974 $ 195,949
Customer relationships    
Finite-Lived Intangible Assets [Line Items]    
Weighted-Average Remaining Amortization Period 5 years 3 months 18 days 5 years 6 months
Gross Carrying Amount $ 344,000 $ 344,000
Accumulated Amortization (154,285) (144,326)
Net $ 189,715 $ 199,674
Trademarks, tradenames and other    
Finite-Lived Intangible Assets [Line Items]    
Weighted-Average Remaining Amortization Period 4 years 10 months 24 days 5 years 1 month 6 days
Gross Carrying Amount $ 43,420 $ 43,120
Accumulated Amortization (20,436) (19,122)
Net $ 22,984 $ 23,998
v3.26.1
Intangible Assets - Narrative (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]    
Amortization expense $ 66.7 $ 65.7
v3.26.1
Current and Long-term Liabilities - Revolving Line of Credit (Details)
$ in Thousands
 3 Months Ended
Mar. 04, 2025
USD ($)
Nov. 07, 2024
USD ($)
Mar. 31, 2026
USD ($)
Mar. 31, 2025
USD ($)
Line of Credit Facility [Line Items]        
Aggregate principal amount outstanding     $ 1,859,022  
Line of Credit | Term B Loan        
Line of Credit Facility [Line Items]        
Aggregate principle amount $ 600,000      
Principal amount payable per annum 1.00%      
Lender fees $ 11,900      
Debt financing costs $ 3,100      
Amortization of debt issuance costs     500 $ 100
Aggregate principal amount outstanding     $ 594,000  
Weighted-average rate     5.42%  
Line of Credit | Secured Overnight Financing Rate (SOFR) | Term B Loan        
Line of Credit Facility [Line Items]        
Variable interest rate spread (in percent) 1.75%      
Line of Credit | Base Rate | Term B Loan        
Line of Credit Facility [Line Items]        
Variable interest rate spread (in percent) 0.75%      
Revolving Credit Facility | Line of Credit        
Line of Credit Facility [Line Items]        
Surety bonds issued   $ 500,000 $ 500,000  
Principal outstanding     0  
Letters of credit issued     11,900  
Net facility available     $ 488,100  
Maximum leverage ratio 4.50      
Testing threshold percentage 40.00%      
Revolving Credit Facility | Line of Credit | Minimum        
Line of Credit Facility [Line Items]        
Variable interest rate spread (in percent)   0.75%    
Commitment fee percentage   0.25%    
Revolving Credit Facility | Line of Credit | Maximum        
Line of Credit Facility [Line Items]        
Variable interest rate spread (in percent)   1.25%    
Commitment fee percentage   0.375%    
Revolving Credit Facility | Line of Credit | Variable Rate Component One | Minimum | Secured Overnight Financing Rate (SOFR)        
Line of Credit Facility [Line Items]        
Variable interest rate spread (in percent)   1.75%    
Revolving Credit Facility | Line of Credit | Variable Rate Component One | Maximum | Secured Overnight Financing Rate (SOFR)        
Line of Credit Facility [Line Items]        
Variable interest rate spread (in percent)   2.25%    
Revolving Credit Facility | Line of Credit | Variable Rate Component Two | Secured Overnight Financing Rate (SOFR)        
Line of Credit Facility [Line Items]        
Variable interest rate spread (in percent)   1.00%    
Revolving Credit Facility | Line of Credit | Variable Rate Component Two | Fed Funds Effective Rate Overnight Index Swap Rate        
Line of Credit Facility [Line Items]        
Variable interest rate spread (in percent)   0.50%    
v3.26.1
Current and Long-term Liabilities - Convertible Notes and Indirect Taxes (Details)
$ / shares in Units, $ in Thousands
 1 Months Ended 3 Months Ended
Mar. 31, 2021
USD ($)
$ / shares
Mar. 31, 2026
USD ($)
Mar. 31, 2025
USD ($)
Dec. 31, 2025
USD ($)
Line of Credit Facility [Line Items]        
Convertible notes, net of issuance costs   $ 1,259,755   $ 1,259,096
Estimated liability for indirect taxes   92,100   90,100
Convertible Noteholders        
Line of Credit Facility [Line Items]        
Aggregate principle amount $ 1,265,000      
Lender fees 17,000      
Debt financing costs $ 1,700      
Amortization of debt issuance costs   700 $ 700  
Conversion ratio 0.010543      
Conversion price (in dollars per share) | $ / shares $ 94.85      
Strike price (in dollars per share) | $ / shares 94.85      
Cap price (in dollars per share) | $ / shares $ 135.50      
Net cost incurred $ 124,000      
Convertible notes, net of issuance costs   1,259,800    
Debt issuance costs   5,200    
Fair value of convertible notes   $ 1,140,100   $ 1,158,700
v3.26.1
Current and Long-term Liabilities - Schedule of Maturities of Long-Term Debt (Details)
$ in Thousands
Mar. 31, 2026
USD ($)
Current and Long-term Liabilities  
April 1, 2026 to December 31, 2026 $ 4,444
2027 5,874
2028 1,270,815
2029 5,757
2030 5,700
Thereafter 566,432
Total $ 1,859,022
v3.26.1
Current and Long-term Liabilities - Warrant Liabilities (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended
May 05, 2022
Mar. 31, 2026
Mar. 31, 2025
May 14, 2019
Line of Credit Facility [Line Items]        
Fair value of the Company’s warrant liability   $ 0 $ 10,600  
Loss (gain) on remeasurement of warrant liabilities   $ 0 (2,495)  
Exercise of warrants     $ 8,973  
GNOG        
Line of Credit Facility [Line Items]        
Share ratio (in shares) 0.365      
Issuance of New DraftKings' class A common stock for each common share of Golden Nugget Online Gaming (in shares) 2,100,000      
Public Warrants        
Line of Credit Facility [Line Items]        
Number of warrants issued (in shares)       13,300,000
Number of shares issuable per warrant (in shares)       1
Price per warrant (in dollars per share)       $ 11.50
Number of warrants outstanding (in shares)   0    
Private Placement Warrants        
Line of Credit Facility [Line Items]        
Number of warrants issued (in shares)       6,300,000
Number of shares issuable per warrant (in shares)       1
Price per warrant (in dollars per share)       $ 11.50
Shares issued for exercise of warrants (in shares)     200,000  
Exercise of warrants     $ 9,000  
Private Placement Warrants | GNOG        
Line of Credit Facility [Line Items]        
Number of warrants issued (in shares) 5,900,000      
Number of shares issuable per warrant (in shares) 1      
Price per warrant (in dollars per share) $ 11.50      
Number of warrants outstanding (in shares)   0    
Shares issued for exercise of warrants (in shares)     0  
Public Warrants And Private Warrant        
Line of Credit Facility [Line Items]        
Loss (gain) on remeasurement of warrant liabilities     $ 2,500  
v3.26.1
Fair Value Measurements - Summary of Assets and Liabilities Measured at Fair Value (Details) - USD ($)
$ in Thousands
Mar. 31, 2026
Dec. 31, 2025
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative asset, noncurrent, statement of financial position Deposits and other non-current assets Deposits and other non-current assets
Assets    
Derivative instruments $ 7,059 $ 7,059
Equity securities 9,127 9,127
Assets 202,038 200,398
Liabilities    
Other current liabilities 10,875 14,900
Other long-term liabilities 39,901 59,534
Liabilities 50,777 74,434
Derivative instruments    
Assets    
Money market funds 185,852 184,212
Level 1    
Assets    
Derivative instruments 0 0
Equity securities 0 0
Assets 185,852 184,212
Liabilities    
Other current liabilities 0 0
Other long-term liabilities 0 0
Liabilities 0 0
Level 1 | Derivative instruments    
Assets    
Money market funds 185,852 184,212
Level 2    
Assets    
Derivative instruments 0 0
Equity securities 9,127 9,127
Assets 9,127 9,127
Liabilities    
Other current liabilities 0 0
Other long-term liabilities 0 0
Liabilities 0 0
Level 2 | Derivative instruments    
Assets    
Money market funds 0 0
Level 3    
Assets    
Derivative instruments 7,059 7,059
Equity securities 0 0
Assets 7,059 7,059
Liabilities    
Other current liabilities 10,875 14,900
Other long-term liabilities 39,901 59,534
Liabilities 50,777 74,434
Level 3 | Derivative instruments    
Assets    
Money market funds $ 0 $ 0
v3.26.1
Fair Value Measurements - Summary of Changes in Significant Unobservable Inputs (Details) - Level 3
Mar. 31, 2026
Dec. 31, 2025
yr
Revenue volatility | Minimum    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Measurement input 0.106 0.106
Revenue volatility | Maximum    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Measurement input 0.189 0.173
Revenue volatility | Weighted average    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Measurement input 0.169 0.153
Equity volatility | Minimum    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Measurement input 0.450 0.450
Equity volatility | Maximum    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Measurement input 0.545 0.542
Equity volatility | Weighted average    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Measurement input 0.521 0.510
Operational leverage ratio | Minimum    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Measurement input 0.600 0.610
Operational leverage ratio | Maximum    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Measurement input 0.750 0.750
Operational leverage ratio | Weighted average    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Measurement input 0.673 0.654
v3.26.1
Fair Value Measurements - Summary of Changes in Fair Value of Contingent Consideration Liabilities Which Reflect Level 3 Inputs (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]    
Beginning balance $ 74,434 $ 77,965
Fair value adjustment to contingent consideration liabilities (23,657) 0
Payment of contingent consideration liabilities 0 (3,300)
Ending balance $ 50,777 $ 74,665
v3.26.1
Revenue Recognition - Summary of Deferred Revenue Balances (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Contract With Customer, Liability [Roll Forward]    
Deferred revenue, beginning of the period $ 174,750 $ 166,463
Deferred revenue, end of the period 131,726 133,700
Revenue recognized in the period from amounts included in deferred revenue at the beginning of the period $ 163,837 $ 140,232
v3.26.1
Revenue Recognition - Summary of Disaggregation of Revenue (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Dec. 31, 2025
Dec. 31, 2024
Disaggregation of Revenue [Line Items]        
Total Revenue $ 1,646,076 $ 1,408,806    
Accounts receivable 86,119 66,600 $ 105,577 $ 57,800
Sportsbook        
Disaggregation of Revenue [Line Items]        
Total Revenue 1,094,874 881,957    
iGaming        
Disaggregation of Revenue [Line Items]        
Total Revenue 461,300 423,471    
Other        
Disaggregation of Revenue [Line Items]        
Total Revenue $ 89,902 $ 103,378    
v3.26.1
Stock-Based Compensation - Narrative (Details)
$ in Millions
 3 Months Ended
Mar. 31, 2026
USD ($)
type
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Number of types of stock-based compensation | type 3
Minimum  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Stock based compensation expiration period (in years) 7 years
Maximum  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Stock based compensation expiration period (in years) 10 years
Stock Options  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Total unrecognized stock-based compensation expense | $ $ 744.2
Total unrecognized stock-based compensation expense expected to be recognized over a weighted-average period 3 years
Stock Options | Stock Option And Restricted Stock Incentive Plan2012 And Equity Incentive2017 And Equity Incentive2020  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Vesting period (in years) 4 years
PSP | Minimum  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Performance objectives in years 1 year
PSP | Maximum  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Performance objectives in years 2 years
v3.26.1
Stock-Based Compensation - Summary of Stock Option Activity (Details)
shares in Thousands
 3 Months Ended
Mar. 31, 2026
$ / shares
shares
Options  
Options, Outstanding at beginning of period (in shares) 18,006
Options, Granted (in shares) 0
Options, Exercised options / vested RSUs (in shares) (1,773)
Options, Change in award due to performance-based multiplier (in shares) 0
Options, Forfeited (in shares) (5)
Options, Outstanding at end of period (in shares) 16,228
Total  
Total, Outstanding at beginning of period (in shares) 39,865
Total, Granted (in shares) 17,885
Total, Exercised options / vested RSUs (in shares) (5,001)
Total, Change in awards due to performance-based multiplier (in shares) (76)
Total, Forfeited (in shares) (547)
Total, Outstanding at end of period (in shares) 52,126
Weighted Average Exercise Price of Options  
Weighted Average Exercise Price of Options, Outstanding at beginning of period (in dollars per share) | $ / shares $ 10.03
Weighted Average Exercise Price of Options, Granted (in dollars per share) | $ / shares 0
Weighted Average Exercise Price of Options, Exercised options / vested RSUs (in dollars per share) | $ / shares 1.87
Weighted Average Exercise Price of Options, Change in awards due to performance-based multiplier (in dollars per share) | $ / shares 0
Weighted Average Exercise Price of Options, Forfeited (in dollars per share) | $ / shares 14.83
Weighted Average Exercise Price of Options, Outstanding at end of period (in dollars per share) | $ / shares $ 10.92
Time Based RSUs  
RSUs  
RSUs, Outstanding at beginning of period (in shares) 13,584
RSUs, Granted (in shares) 11,789
RSUs, Exercised options / vested RSUs (in shares) (2,440)
RSUs, Change in awards due to performance-based multiplier (in shares) 0
RSUs, Forfeited (in shares) (506)
RSUs, Outstanding at end of period (in shares) 22,427
PSP RSUs  
RSUs  
RSUs, Outstanding at beginning of period (in shares) 7,866
RSUs, Granted (in shares) 6,096
RSUs, Exercised options / vested RSUs (in shares) (584)
RSUs, Change in awards due to performance-based multiplier (in shares) (76)
RSUs, Forfeited (in shares) (20)
RSUs, Outstanding at end of period (in shares) 13,282
LTIP RSUs  
RSUs  
RSUs, Outstanding at beginning of period (in shares) 409
RSUs, Granted (in shares) 0
RSUs, Exercised options / vested RSUs (in shares) (204)
RSUs, Change in awards due to performance-based multiplier (in shares) 0
RSUs, Forfeited (in shares) (16)
RSUs, Outstanding at end of period (in shares) 189
Restricted Stock Units (RSUs)  
Weighted Average FMV of RSUs  
Weighted Average FMV of RSUS, Outstanding at beginning of period (in dollars per share) | $ / shares $ 31.16
Weighted Average FMV of RSUs, Granted (in dollars per share) | $ / shares 23.31
Weighted Average FMV of RSUs, Exercised options / vested RSUs (in dollars per share) | $ / shares 29.86
Weighted Average FMV of RSUs, Change in awards due to performance-based multiplier (in dollars per share) | $ / shares 16.12
Weighted Average FMV of RSUs, Forfeited (in dollars per share) | $ / shares 32.45
Weighted Average FMV of RSUS, Outstanding at end of period (in dollars per share) | $ / shares $ 27.34
v3.26.1
Stock-Based Compensation - Summary of Stock Compensation Expense (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Stock compensation expense, Options $ 2,823 $ 1,936
Stock compensation expense, RSU 62,392 76,910
Stock compensation expense 65,215 78,846
Time Based    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Stock compensation expense, Options 2,823 1,936
Stock compensation expense, RSU 54,828 42,692
Stock compensation expense 57,651 44,628
PSP    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Stock compensation expense, Options 0 0
Stock compensation expense, RSU 7,450 33,170
Stock compensation expense 7,450 33,170
LTIP    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Stock compensation expense, Options 0 0
Stock compensation expense, RSU 114 1,048
Stock compensation expense $ 114 $ 1,048
v3.26.1
Income Taxes - Summary of Company's (Benefit) provision for income taxes (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Reconciliation of the federal income tax rate to the Company's effective tax rate    
Income tax provision (benefit) $ 6,369 $ (5,600)
Effective tax rate 27.80% 14.20%
v3.26.1
Segment Information - Summary of Financial Information for the Company's Segments (Details)
$ in Thousands
 3 Months Ended
Mar. 31, 2026
USD ($)
segment
Mar. 31, 2025
USD ($)
Segment Reporting Information [Line Items]    
Number of reportable segments | segment 1  
Segment Reporting Information, Profit (Loss) [Abstract]    
Total revenue $ 1,646,076 $ 1,408,806
Depreciation and amortization 71,661 70,116
Interest (income) expense, net 5,739 (4,395)
Stock-based compensation 65,215 78,846
Income tax provision (benefit) 6,369 (5,600)
Net income (loss) attributable to common stockholders 21,070 (33,864)
Reportable Segment    
Segment Reporting Information, Profit (Loss) [Abstract]    
Total revenue 1,646,076 1,408,806
Cost of revenue 569,531 483,403
Other adjusted cost of revenue 313,196 294,609
Sales and marketing expenses 391,482 333,198
Product and technology expenses 97,617 87,453
General and administrative expenses 106,398 107,513
Depreciation and amortization 71,661 70,116
Interest (income) expense, net 5,739 (4,395)
Stock-based compensation 65,215 78,846
Income tax provision (benefit) 6,369 (5,600)
Other segment items (2,202) (2,473)
Net income (loss) attributable to common stockholders $ 21,070 $ (33,864)
v3.26.1
Earnings (Loss) Per Share - Summary of Loss Per Share and Weighted-Average Shares (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Numerator:    
Net income (loss) attributable to common stockholders – basic $ 21,070 $ (33,864)
Loss (gain) on remeasurement of contingent consideration (5,329) 0
Net income (loss) attributable to common stockholders – diluted $ 15,741 $ (33,864)
Denominator:    
Weighted-average Class A common stock shares outstanding - basic (in shares) 494,351,000 493,323,000
Weighted-average diluted impact of contingent consideration (in shares) 415,000 0
Weighted-average diluted impact of options and RSUs (in shares) 15,864,000 0
Weighted-average Class A common stock outstanding – diluted (in shares) 510,630,000 493,323,000
Basic earnings (loss) per share attributable to common stockholders (in dollars per share) $ 0.04 $ (0.07)
Diluted earnings (loss) per share attributable to common stockholders (in dollars per share) $ 0.03 $ (0.07)
v3.26.1
Earnings (Loss) Per Share - Summary of Computation of Diluted Shares Outstanding (Details) - shares
shares in Thousands
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Anti-dilutive securities excluded from the calculation of diluted earnings per share (in shares) 22,915 65,733
Class A common stock resulting from exercise of all warrants    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Anti-dilutive securities excluded from the calculation of diluted earnings per share (in shares) 0 1,196
Stock Options and RSUs    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Anti-dilutive securities excluded from the calculation of diluted earnings per share (in shares) 9,578 51,200
Convertible notes    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Anti-dilutive securities excluded from the calculation of diluted earnings per share (in shares) 13,337 13,337
v3.26.1
Related-Party Transactions (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Dec. 31, 2025
Related Party Transaction [Line Items]      
Related party aircraft lease amount $ 21,858   $ 25,234
Aircraft lease cost incurred $ 100 $ 100  
D K F S L L C      
Related Party Transaction [Line Items]      
Equity method investment ownership percentage 49.90%    
Equity Method Investee | DBDK Venture Fund      
Related Party Transaction [Line Items]      
Equity method investment ownership percentage 28.60%    
Equity Method Investee | DBDK Fund II, LP      
Related Party Transaction [Line Items]      
Equity method investment ownership percentage 35.00%    
Aircraft Lease | Chief Executive Officer      
Related Party Transaction [Line Items]      
Term of aircraft lease 1 year 1 year  
Related party aircraft lease amount $ 600 $ 600  
DBDK Venture Fund | Equity Method Investee      
Related Party Transaction [Line Items]      
Investment commitment 17,500    
Investment amount 13,500    
DBDK Fund II, LP | Equity Method Investee      
Related Party Transaction [Line Items]      
Investment commitment 21,000    
Investment amount $ 2,000    
v3.26.1
Commitments and Contingencies - Summary of Contractual Obligations and Contingencies (Details)
$ in Thousands
Mar. 31, 2026
USD ($)
Commitments and Contingencies Disclosure [Abstract]  
From April 1, 2026 to December 31, 2026 $ 423,777
2027 585,762
2028 495,820
2029 421,211
2030 171,855
Thereafter 40,908
Total $ 2,139,333
v3.26.1
Commitments and Contingencies - Narrative (Details)
$ in Thousands, shares in Millions
 3 Months Ended
Apr. 02, 2026
patent
Jan. 20, 2026
defendant
action
Nov. 06, 2025
USD ($)
Aug. 13, 2025
claim
Jul. 11, 2025
patent
May 09, 2025
patent
Feb. 10, 2025
patent
Oct. 29, 2024
action
Mar. 13, 2024
claim
May 31, 2023
action
Feb. 07, 2022
patent
Dec. 15, 2021
patent
Dec. 01, 2021
patent
Oct. 12, 2021
patent
Aug. 19, 2021
patent
Jul. 28, 2021
patent
Jul. 07, 2021
patent
Mar. 31, 2026
USD ($)
shares
Mar. 31, 2025
USD ($)
shares
Apr. 08, 2026
plaintiff
Mar. 24, 2026
lawsuit
Mar. 23, 2026
plaintiff
Sep. 16, 2025
claim
Aug. 18, 2025
patent
Jul. 24, 2025
action
Jul. 14, 2025
action
Jul. 30, 2024
USD ($)
Mar. 04, 2016
claim
Property, Plant and Equipment [Line Items]                                                        
Amount of stock repurchase plan authorized | $     $ 2,000,000                                               $ 1,000,000  
Increased amount of stock repurchase plan authorized | $     $ 1,000,000                                                  
Purchase of treasury stock (in shares) | shares                                   3.3 3.7                  
Repurchase of shares under Stock Repurchase Program | $                                   $ 98,640 $ 142,278                  
Number of claims | claim                                                       5
Unpatentable claims | claim                 2                                      
Number of cases       2           3                                    
Consolidated claims | action               3                                        
Pending claims | plaintiff                                           1            
Number of claims withdrawn | claim                                             2          
Number of lawsuits | lawsuit                                         6              
Subsequent Event                                                        
Property, Plant and Equipment [Line Items]                                                        
Claims motioned to dismiss with prejudice | plaintiff                                       2                
Claims motioned to dismiss without predjudice | plaintiff                                       1                
Claims motioned to dismiss and denied | plaintiff                                       4                
Case Filed By Winview Inc.                                                        
Property, Plant and Equipment [Line Items]                                                        
Patents not infringed         2                                              
Case Filed By Winview Inc. | Daily Fantasy Sports                                                        
Property, Plant and Equipment [Line Items]                                                        
Number of patents allegedly infringed                                 2                      
Case Filed By Winview Inc. | Sportsbook product                                                        
Property, Plant and Equipment [Line Items]                                                        
Number of patents allegedly infringed             9         4       2                        
Arrow Gaming Matter                                                        
Property, Plant and Equipment [Line Items]                                                        
Number of patents allegedly infringed                           1 4                          
Diogenes Ltd. & Colossus (IOM) Ltd. Matter                                                        
Property, Plant and Equipment [Line Items]                                                        
Number of patents allegedly infringed                     1   7                              
Cases Filed By Moore                                                        
Property, Plant and Equipment [Line Items]                                                        
Pending claims | action   9                                             3 2    
Number of defendants | defendant   4                                                    
RICO Claims                                                        
Property, Plant and Equipment [Line Items]                                                        
Number of defendants | defendant   3                                                    
Micro-Gaming Lawsuit                                                        
Property, Plant and Equipment [Line Items]                                                        
Number of patents allegedly infringed           5                                            
Interactive Games | Subsequent Event                                                        
Property, Plant and Equipment [Line Items]                                                        
Number of patents allegedly infringed 5                                                      
Case Filed By DraftKings | Sportsbook product                                                        
Property, Plant and Equipment [Line Items]                                                        
Pending claims                                               9        
Surety Bond                                                        
Property, Plant and Equipment [Line Items]                                                        
Combined annual premium cost                                   0.50%                    
Surety bonds issued | $                                   $ 500,000