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DraftKings makes most of its money from online and retail sports betting and online casino games. Those two businesses generated 93% of the company’s $6.05 billion in revenue in 2025. Sportsbook revenue is not the total amount customers wager: it is the amount left after winning bets are paid and incentives are accounted for. That distinction helps explain why DraftKings’ sports revenue can fall even when betting activity rises.
Where DraftKings’ revenue comes from
DraftKings reported $6,054.5 million in total revenue for fiscal 2025, its year ended December 31, 2025. The company’s three reported revenue categories were Sportsbook, iGaming and Other. [DraftKings FY2025 Form 10-K]
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| FY2025 revenue category | Revenue | Share of total | What it covers |
|---|---|---|---|
| Sportsbook | $3,827.1 million | About 63% | Online and retail sportsbook |
| iGaming | $1,804.6 million | About 30% | Online casino games |
| Other | $422.8 million | About 7% | Primarily daily fantasy sports (DFS), digital lottery courier and prediction markets; also included $25.6 million of customer-deposit interest income in 2025 |
| Total | $6,054.5 million | 100% | Company-reported FY2025 revenue |
The Sportsbook and iGaming categories together accounted for 93% of FY2025 revenue, compared with 93% in 2024 and 91% in 2023. Total revenue was $4,767.7 million in 2024 and $3,665.4 million in 2023. These figures are company-reported in DraftKings’ FY2025 Form 10-K.
How Sportsbook revenue works
A sportsbook accepts wagers at odds it sets. If a customer wins, the sportsbook pays the winnings determined by those odds. DraftKings says it sets odds to build in a theoretical margin, but realized results depend on event outcomes and customer betting patterns. The company reports sportsbook revenue after winning-wager payouts and incentives, rather than reporting all accepted wagers as revenue. [DraftKings FY2025 Form 10-K]
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Handle is betting activity, not revenue
Sportsbook handle is the total amount wagered; it does not show how much DraftKings ultimately earns. DraftKings reported $53.6 billion in Sportsbook Handle and a 7.1% Sportsbook Net Revenue Margin for FY2025. Handle rose from $48.1 billion in 2024 to $53.6 billion in 2025, while net revenue margin rose from 6.0% to 7.1%. The margin is a reported outcome, not a guaranteed cut of every wager or a promise of profit.
The difference was especially visible in the second quarter of 2026. Sports Consumer Volume was $13.14 billion, up 14.5% year over year, while Sports Revenue fell 10.6% to $891.9 million. The company reported a 6.8% Sports Net Revenue Margin for the quarter, versus 8.7% in Q2 2025, and attributed the lower revenue per activity in part to customer-friendly sports outcomes and more promotional reinvestment for new customer acquisition. Sports Consumer Volume includes settled customer wagers or trades on Sportsbook and Prediction Markets; Sports Revenue includes both. [DraftKings Q2 2026 results, August 6, 2026]
Why sportsbook results fluctuate
When customers’ bets lose, the sportsbook generally retains more of the wagered amount; when customers win, it pays out more. The mix of bets and outcomes can therefore change revenue from one period to another even if handle is stable or growing. Promotions can also reduce the revenue retained from customer activity. DraftKings said FY2025’s higher Sportsbook Net Revenue Margin reflected improved hold percentage and promotional reinvestment. Neither a favorable margin nor a particular outcome is certain to recur.
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How iGaming generates revenue
DraftKings uses iGaming to describe online casino games such as digital slots, blackjack, roulette and baccarat. In FY2025, the company reported $1,804.6 million in iGaming revenue, up 19.7% year over year. It attributed the growth to increases in average monthly unique payers and average revenue per monthly unique payer. For the first half of 2026, iGaming revenue was $923.2 million, 8.2% above the comparable period. [DraftKings FY2025 Form 10-K; DraftKings Q2 2026 results]
Unlike sportsbook revenue, which can swing with sporting-event results and bet mix, online casino revenue reflects customers’ play across casino games. It is still affected by customer activity, promotions, and the jurisdictions where the product is permitted. DraftKings’ iGaming footprint was five U.S. states, representing about 11% of the U.S. population, as of August 6, 2026, according to the company.
Other revenue and newer offerings
Other is much smaller than Sportsbook and iGaming. In its FY2025 filing, DraftKings said the category primarily included DFS, digital lottery courier and prediction markets; it also included customer-deposit interest income that became material in 2025. The acquisition of Jackpocket contributed to growth in Other revenue in 2025. [DraftKings FY2025 Form 10-K]
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Revenue categories are not presented identically in every disclosure. In the Q2 2026 release, DraftKings included prediction-market revenue within Sports Revenue. The disclosed totals therefore do not establish a standalone prediction-market revenue figure for that quarter. [DraftKings Q2 2026 results]
What drives DraftKings’ revenue and profitability
Customer growth and spending
DraftKings tracks average monthly unique payers (MUPs) and average revenue per monthly unique payer (ARPMUP). MUPs are the average number of unique payers per month during the period; ARPMUP measures average revenue per such payer. In FY2025, the company reported 4.0 million average monthly unique payers, up from 3.7 million in 2024 and 2.7 million in 2023. ARPMUP was $125 in 2025, compared with $106 in 2024 and $113 in 2023.
DraftKings said FY2025 total revenue grew 27.0%; Sportsbook and iGaming revenue together grew 27.7%. It attributed that combined growth to MUP growth of 7.9% and ARPMUP growth of 17.9%. The company said ARPMUP benefited principally from the Sportsbook margin rising from 6.0% to 7.1%, alongside improved iGaming handle and margin. These are company explanations of reported results, not a guarantee that the same drivers will contribute equally in later periods. [DraftKings FY2025 Form 10-K]
In Q2 2026, DraftKings reported 3.6 million MUPs, approximately 9% more than a year earlier, while ARPMUP was $132, down approximately 13% or $19. The company attributed the ARPMUP decline primarily to customer-friendly sports outcomes and new-customer promotions affecting Sportsbook and Predictions. [DraftKings Q2 2026 results, August 6, 2026]
Costs, taxes and market availability
Revenue growth does not by itself show how much profit a business makes. DraftKings reported cost of revenue at 58.7% of revenue in FY2025, down from 61.9% in 2024. It attributed the change principally to lower payment-processing fees as a share of revenue and improved promotional reinvestment, partly offset by higher gaming-tax rates in certain jurisdictions. Marketing, technology, general and administrative expenses also affect whether revenue covers the company’s broader costs. [DraftKings FY2025 Form 10-K]
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Scan for outdated or missing drivers - takes under a minuteDriver Scan →Repair Windows errors before they cause bigger problemsFix Now →Fix the driver behind crashes, sound loss and screen glitchesFind Drivers →Regulation shapes which products DraftKings can offer. As of August 6, 2026, the company said mobile sportsbook was available in 27 states, Washington, D.C. and Puerto Rico, representing about 53% of the U.S. population. Its iGaming footprint was five states, about 11% of the U.S. population. After launching in Alberta, DraftKings said its sportsbook and iGaming products were live in Canadian provinces representing about 51% of Canada’s population. These are dated company-reported footprints and can change as laws and launches change. [DraftKings Q2 2026 results, August 6, 2026]
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What the latest reported quarter shows
For the three months ended June 30, 2026, DraftKings reported revenue of $1,443.2 million, down 4.6% year over year. The split shows how different business lines can move in opposite directions:
| Q2 2026 category | Revenue | Year-over-year change |
|---|---|---|
| Sports Revenue | $891.9 million | Down 10.6% |
| iGaming Revenue | $461.9 million | Up 7.5% |
| Other Revenue | $89.4 million | Up 5.2% |
| Total revenue | $1,443.2 million | Down 4.6% |
The company’s CEO characterized the quarter as strong and said the business grew across handle, users and engagement. That is management’s assessment; the reported revenue decline and sports-margin figures provide important context. The company maintained FY2026 revenue guidance of $6.5 billion to $6.9 billion and Adjusted EBITDA guidance of $700 million to $900 million on August 6, 2026. Those are forward-looking company estimates, not achieved results. Adjusted EBITDA is a company-defined non-GAAP measure and should not be treated as equivalent to GAAP net income. [DraftKings Q2 2026 results, August 6, 2026]
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