DraftKings earns most of its revenue from sports betting and online casino games. In fiscal 2025, Sportsbook and iGaming together accounted for 93% of its revenue. Sportsbook revenue is the amount left from settled wagers after payouts; iGaming revenue comes from the casino’s winnings as customers play. Those figures are revenue, not profit, and the company’s latest reporting category called “Sports” also includes Prediction Markets.
How DraftKings earns revenue from sports betting
For a sportsbook, the total amount customers wager is commonly called handle. DraftKings earns revenue from resolved betting markets by subtracting payouts from settled handle. The remainder is gross gaming revenue, also called hold.
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DraftKings describes the calculation in its 2025 Form 10-K: “Revenue is realized by taking the settled handle for betting markets that have been resolved and subtracting the payouts for these betting markets such that the difference is our gross gaming revenue, or ‘hold.’” The company sets odds intended to provide a built-in theoretical margin, but actual results vary with game outcomes and customers’ betting patterns. A busy betting period does not guarantee higher revenue if payouts are also high.
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How DraftKings earns revenue from iGaming
iGaming refers here to online casino play, including slots, blackjack, roulette, and baccarat. Customers play games against the house, and DraftKings recognizes the house’s gross winnings, or hold, as revenue. Its casino content includes both games developed in-house and games licensed from suppliers.
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What DraftKings’ reported revenue figures show
DraftKings’ annual and quarterly filings use different reporting categories. The 2025 annual report separates Sportsbook and iGaming; the 2026 second-quarter filing reports Sports, iGaming, and Other, and defines Sports to include online and retail sportsbook as well as Prediction Markets. The periods and labels should not be conflated.
| Reporting period and source | Sportsbook or Sports | iGaming | Other | Total revenue |
|---|---|---|---|---|
| Fiscal 2025, DraftKings Inc. 2026 Form 10-K | $3,827.1 million (Sportsbook) | $1,804.6 million | Not stated as a comparable standalone figure in the cited summary | $6,054.5 million |
| Six months ended June 30, 2026, DraftKings Inc. Q2 Form 10-Q | $1,986.4 million (Sports; includes Prediction Markets) | $923.2 million | $179.6 million | $3,089.3 million |
Sportsbook and iGaming made up 93% of fiscal 2025 revenue, according to the 2025 annual filing. The six-month 2026 values are year-to-date figures, not a full-year total. The 2026 “Sports” amount is not sportsbook-only because the category includes Prediction Markets. “Other” primarily includes Fantasy, Lottery, and interest income on customer deposits in that filing.
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Why betting volume can rise while revenue falls
Sports Consumer Volume is the amount of customer activity DraftKings reports for its Sports category; it is not revenue. In the second quarter of 2026, Sports Consumer Volume was $13.1 billion, up 14.5% year over year, while Sports revenue declined 10.6%. DraftKings reported a Sports Net Revenue Margin of 6.8%, down from 8.7% a year earlier.
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The company attributed the margin decline mainly to customer-friendly sports outcomes and increased promotional spending associated with customer acquisition. In other words, the amount wagered can grow even as the share retained as revenue shrinks. iGaming revenue rose 7.5% in that quarter, partially offsetting the decline in Sports. Total second-quarter 2026 revenue was $1,443.2 million, down 4.6% year over year.
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Why revenue is not the same as profit
Revenue is the money recognized from gaming activity and other reported sources; it does not show what remains after operating costs. In fiscal 2025, DraftKings reported $3,556.9 million in cost of revenue, $1,379.9 million in sales and marketing, $459.9 million in product and technology expense, and $673.6 million in general and administrative expense.
The filings identify gaming taxes, payment processing, platform costs, promotions, and customer acquisition as relevant expense drivers. Launching in new markets can also require substantial spending to attract and retain customers and encourage them to use more than one product. Therefore, a larger handle or revenue figure by itself does not establish that the company is more profitable.
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How to read DraftKings’ revenue reports
- Check the period first: a quarter, six-month period, and full fiscal year are not interchangeable.
- Check the category label: 2025 “Sportsbook” and 2026 “Sports” do not cover exactly the same products.
- Separate activity from earnings: handle or Sports Consumer Volume measures wagering activity, while revenue reflects the net amount after payouts and other recognition rules.
- Separate revenue from profit: expenses such as taxes, promotions, marketing, and technology costs affect what remains.
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