# DraftKings **DraftKings** is the Boston-based sports-betting company founded in 2012 by **Jason Robins** (CEO), **Matt Kalish** and **Paul Liberman**, all from Vistaprint. It began in daily fantasy sports, rode the state-by-state legalization that followed *[[Murphy v. NCAA]]* (2018), and in 2025 crossed into federally regulated prediction markets. That last move let it reach bettors in states where its own sportsbook is illegal. In FY2025 it reported **$6.05 billion** in revenue, up 27%, and net income of $3.7 million. Its FY2026 guidance is $6.5–6.9 billion. ## Fantasy sports, 2015–16 DraftKings and [[FanDuel]] spent heavily on advertising in 2015, including a reported $250 million ESPN deal. That October a DraftKings employee released lineup data and then won $350,000 on FanDuel. New York's attorney general opened an inquiry on October 6, 2015. In October 2016 the two companies paid **$6 million each** to settle New York's case. DraftKings went public in April 2020 through a three-way merger with the Diamond Eagle SPAC and the betting-technology firm SBTech (one source). ## Prediction markets and leaving Nevada - **The break.** On November 13, 2025 DraftKings and FanDuel gave up their Nevada licenses rather than stop selling federally registered event contracts. On November 19 they resigned from the [[American Gaming Association]]. Nevada's regulators said the firms "intend to engage in unlawful activities related to sports event contracts." - **The launch.** **DraftKings Predictions** went live on December 19, 2025 in 38 states, on [[CME Group]]'s exchange. In 17 states it offers sports and non-sports contracts. In the other 21 states, and D.C., where DraftKings already runs a sportsbook, it offers non-sports contracts only, so it does not compete with itself. - **Railbird.** DraftKings bought the prediction-market exchange Railbird on October 21, 2025. Its filings value the deal at $84.8 million, with up to $200 million more in contingent payments. Moving Predictions onto Railbird was planned for later. No state had acted against DraftKings Predictions as of early October 2026. It was not among the operators Connecticut ordered to stop on September 11. See [[Prediction Markets and Gambling Sector]]. ## Taxes States that legalized betting have been raising its taxes. Illinois moved in July 2025 to a **per-bet** tax: 25¢ on each of the first 20 million bets a year, 50¢ after that. DraftKings answered by adding its own 50¢ fee to every Illinois bet from September 1, 2025. ## Fines and lawsuits - **Massachusetts:** a record $450,000 fine (August 1, 2025) for taking credit-card deposits. - **Connecticut:** $3 million returned to customers (July 2025) over deceptive bonus marketing. - **VIP hosts:** lawsuits say the VIP program targeted problem gamblers. Dr. Kavita Fischer sued in federal court in New York in February 2025, alleging $208,000 deposited and $153,000 lost. Daniel Arroyo sued in Massachusetts on March 27, 2026, backed by the Public Health Advocacy Institute. See [[Problem Gambling]]. ## Politics DraftKings gave **$502,000** to Trump's 2025 inaugural committee. In the 2026 cycle it is the largest giver in the sports-betting bloc. Of the industry's **$72 million** as of July 29, 2026, DraftKings put in about **$34 million**, mostly through the [[Win for America]] super PAC, which spends in state races where gambling rules are written. In Massachusetts, DraftKings executives gave about $37,500 to House Speaker Ron Mariano and Ways and Means chair Aaron Michlewitz (WBUR, May 2026). Federally, the industry is fighting integrity bills such as the SAFE Bet Act; see [[Sports Betting]]. ## See Also - [[Prediction Markets and Gambling Sector]] · [[Sports Betting]] · [[Problem Gambling]] · [[Murphy v. NCAA]] - [[Kalshi]] · [[CFTC]] · [[FanDuel]] · [[Fanatics]] · [[Michael Selig]] · [[Crypto.com]]