Online sports entertainment has completely changed in the last decade. Platforms like DraftKings are leading this transformation. So let’s take a closer look at what DraftKings is and how the platform is shaping online sports entertainment.
Starting out as a fantasy sports service. DraftKings has evolved into a platform that blends sports, technology, betting and user engagement to offer an incredible sports entertainment experience. It now stands out as a dominant force. This isn’t just in online gambling but also in the sporting world. It provides services for both sports enthusiasts and bettors, providing a seamless, data-driven and interactive betting experience.
Starting with fantasy
DraftKings was founded back in 2012 by Jason Robins, Matt Kalish and Paul Liberman. It entered the market as a daily fantasy sports (DFS) platform. During this time, fantasy sports were growing in popularity, but DraftKings was able to add to the industry even more. Right away, the platform helped to make fantasy sports more accessible, fast-paced and more engaging. Their DFS contests attracted even more users, allowing them to pick player lineups and compete for cash prizes over single games or weeks, rather than entire seasons.
Things changed a lot in 2018. The repeal of the Professional and Amateur Sports Protection Act (PASPA) allowed states to legalize sports betting. DraftKings moved quickly and launched one of the first legal online sportsbooks in New Jersey. Since then, as regulation in the country has expanded, so has DraftKings. It now has operations in over 25 states with a wide range of offerings, including sportsbooks, online casinos, horse racing through DK Horse and even lottery integrations via Jackpocket.
What DraftKings has to offer
One of the factors that makes DraftKings so popular among sports fans is that it’s more than just another betting app. It’s built for accessibility, offering a smooth experience across multiple devices, including desktops, tablets and most importantly smartphones. This has helped to make the experience more accessible and convenient for users. The platform has a diverse range of offerings. This includes:
- Daily fantasy sports (DFS): This remains a staple and attracts millions of users who compete in high-stakes contests across the NFL, NBA, MLB, NHL and more.
- Sportsbook services: There is a wide range of betting markets to choose from for both pre-game and in-game betting.
- Online casino: You can access several casino experiences, from online slots to blackjack and roulette. These games are offered by top gaming providers, as well as exclusive in-house games built by DraftKings.
- DK Horse: Users can take part in real-time betting on races around the country and even some international events.
- Lottery integration: Through Jackpocket, users can purchase state lottery tickets directly from the app.
Another thing DraftKings has to offer is a wide range of betting incentives, including promotions on DraftKings via Covers and other sportsbook review platforms. These offers are a major draw for both new and returning users. DraftKings provides a range of offers, everything from sign-up bonuses and odds boosts to risk-free bets and parlay insurance. Promotions like these not only make betting more exciting but also reduce risk and the opportunity to try out different sports or bet types without risking their own money.
The technology powering DraftKings
At the heart of DraftKings’ success is the technology behind it. The platform’s real-time data engine enables lightning-fast odds calculation, live updates and low-latency in-game betting. DraftKings’ acquisition of SBTech in 2020 gave the company full control over its own backend. This allowed for customized odds-making and live-betting algorithms without reliance on third-party vendors.
DraftKings also utilizes artificial intelligence (AI) and machine learning to personalize user experiences. DraftKings uses behavioral data to suggest bets, games and contests tailored to user preferences. The platform is commonly compared to Netflix, especially in the online casino section, where games are organized by popularity, history and user behavior patterns.
In terms of security, the companies use geolocation technology, fraud detection and identity verification protocols to ensure compliance with state-level gambling regulations. These features not only protect users but also ensure DraftKings maintains its operational licenses across multiple jurisdictions.
Moreover, DraftKings has implemented responsible gaming tools like deposit limits, self-exclusion options and real-time behavioral alerts to support user well-being, which is a growing priority in the gambling industry.
The company’s market position
DraftKings is one of the two leading online betting platforms in the U.S., alongside FanDuel. Together, they command about 80% of the market share in online sports betting. DraftKings alone holds approximately 34% driven by its aggressive expansion strategy and sustained user growth.
Financially, the platform has seen incredible growth. Recently, they reported $1.41 billion in revenue in the first quarter of 2025. This is an increase of 20% from its $1.175 billion mark in the first quarter of 2024.
Partnerships with major leagues like the NFL, NBA, MLB and PGA tour have further cemented its position as a trusted member of the sports ecosystem. The company has also dabbled in blockchain-based collectibles and NFTs, which is helping to appeal to a younger, tech-forward demographic.
Challenges in a competitive industry
Despite its incredible momentum, DraftKings still faces a number of challenges. This includes:
- Regulatory scrutiny: This is increasing, especially around advertising ethics, data use and consumer protection. There are a few U.S. senators raising concerns over gambling addiction and ad saturation during live sports events.
- State-by-state legislation: The difference in laws between states creates a patchwork of compliance demands and limits expansion speed in key markets like California, Texas and Florida.
- Rising competition: The gambling industry is hot right now and competition from other sportsbooks like BetMGM, Caesars and Fanatics is rising. This continues to put pressure on DraftKings.
Regardless of these challenges, DraftKings shows no signs of slowing down. With plans to internalize all live and in-game betting operations by the end of 2025, the company is doubling down on its tech-first strategy.
DraftKings has come a long way from its roots in daily fantasy sports. Today, it stands at the intersection of technology, media and online gambling. For bettors looking to combine excitement, analytics and community, DraftKings delivers more than a game; it delivers an experience.