DraftKings Inc. (NASDAQ: DKNG)

DraftKings Inc. operates as a digital sports entertainment and gaming company, offering a range of online and retail sports betting (Sportsbook), online casino (iGaming), daily fantasy sports (DFS), digital lottery courier, prediction markets, and other related product offerings. The company's mission is to create the world's favorite real-money games and betting experiences, focusing on responsible gaming and regulatory compliance. DraftKings invests heavily in product innovation, marketing, and user experience to attract and retain a user base that engages with its various product offerings.

DraftKings generates revenue primarily through its Sportsbook and iGaming product offerings, which accounted for 93% and 91% of its revenues for the fiscal years ended December 31, 2025, and 2023, respectively. The company also offers DFS, digital lottery courier, prediction markets, and other product offerings. Revenue is generated by setting odds for betting markets, taking a percentage of the handle, and offering a suite of casino games. The customer base consists of sports enthusiasts and casino game players who engage in real-money gaming activities.

• Sportsbook: DraftKings Sportsbook engages consumers in their sports viewing experience by allowing users to place bets on various sporting events at fixed odds. Revenue is generated by setting odds that provide a built-in theoretical margin for each proposition offered. The company operates its Sportsbook app in multiple U.S. states and the Canadian province of Ontario, catering to sports betting enthusiasts.

• iGaming: The iGaming product offering includes a full suite of online casino games such as blackjack, roulette, baccarat, and slot machines. DraftKings functions similarly to land-based casinos, generating revenue through hold or gross winnings as users play against the house. The iGaming product offering consists of a combination of in-house developed games and licensed content from suppliers like International Gaming Technology, Light & Wonder Inc., Spin, and Evolution for live dealer services.

• Daily Fantasy Sports: DraftKings offers DFS through its Pick6 product, facilitating peer-to-peer play where contestants compete against each other for prize money. Revenue is generated from the difference between entry fees collected and amounts paid out as prizes.

• Digital Lottery Courier: This product offering facilitates the purchase of official state lottery tickets on behalf of customers through a mobile application or website. Revenue is earned primarily from service fees for processing and fulfilling ticket orders, along with commissions earned from state lotteries on ticket sales and certain winning tickets.

• Prediction Markets: DraftKings Predictions allows eligible customers to trade on real-world outcomes across a wide range of markets, including sports and financial markets. Revenue is generated from introducing fees paid by futures commission merchants when customer trades occur.

DraftKings operates in a competitive industry characterized by dynamic customer demand and technological advances. Key competitors include established, well-financed companies producing online gaming and interactive entertainment products and services. The company's competitive advantages include a strong brand reputation, a depth of user trust, and a scalable technology platform that allows for rapid innovation and new market entries. DraftKings maintains relationships with sports leagues, professional sports teams, and leading media companies like ESPN, NBC, and Amazon to enhance brand awareness and user retention.

The general customer base for DraftKings consists of sports fans and casino game players who engage in real-money gaming activities. The company's user base is attracted to the variety of product offerings, the ease of use of the platform, and the exciting betting experiences provided. DraftKings continues to invest in marketing, user experience, and support to grow and retain its paid user base, ensuring that it remains a leading player in the digital sports entertainment and gaming industry.