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DraftKings makes most of its money from its sportsbook and online casino. In fiscal 2025, those two businesses generated 93% of the company’s $6.05 billion in revenue. Sportsbook revenue is wagers minus winning payouts and incentives; iGaming revenue comes from online casino play. The distinction matters because the amount customers wager is not the amount DraftKings earns.
Where DraftKings’ revenue comes from
For the year ended December 31, 2025, DraftKings reported $6,054.5 million in total revenue, up from $4,767.7 million in 2024 and $3,665.4 million in 2023. Sportsbook and iGaming together accounted for 93% of 2025 revenue, compared with 93% in 2024 and 91% in 2023. These figures are from the company’s FY2025 Form 10-K.
| FY2025 revenue category | Revenue | Share of total |
|---|---|---|
| Sportsbook (online and retail) | $3,827.1 million | 63.2% |
| iGaming | $1,804.6 million | 29.8% |
| Other | $422.8 million | 7.0% |
| Total | $6,054.5 million | 100% |
Percentages are calculated from the company-reported category totals and rounded to one decimal place. “Other” primarily includes daily fantasy sports (DFS), digital lottery courier services and prediction markets; it also included $25.6 million in customer-deposit interest income in 2025. Jackpocket’s acquisition contributed to growth in this category. The category is not a single product line, and its contents can differ across company disclosures.
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How the sportsbook earns revenue—and why handle is not revenue
In a sportsbook, customers place wagers at odds set by DraftKings. When a customer wins, DraftKings pays the amount determined by those odds. The company says its odds are designed to provide a theoretical margin, but actual results depend on event outcomes and customer betting patterns. Reported Sportsbook revenue is customer wagers less winning-wager payouts and incentives.
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Handle measures the amount wagered, not the amount DraftKings keeps. For all of FY2025, DraftKings reported $53.6 billion in Sportsbook Handle and a 7.1% Sportsbook Net Revenue Margin. Handle was $48.1 billion and margin 6.0% in 2024; in 2023, they were $37.4 billion and 5.6%. The margin is a reported measure of realized sportsbook revenue relative to wagering activity, not a guaranteed take rate or profit margin.
The difference is visible in the company’s second-quarter 2026 results. For the three months ended June 30, Sports Consumer Volume rose 14.5% year over year to $13.14 billion, while Sports Revenue fell 10.6% to $891.9 million. Sports Consumer Volume includes settled customer wagers or trades on Sportsbook and Prediction Markets, and Sports Revenue includes both. DraftKings reported a 6.8% Sports Net Revenue Margin for Q2 2026, down from 8.7% a year earlier. It attributed the weaker revenue per unit of activity primarily to customer-friendly sports outcomes and promotional reinvestment associated with new customer acquisition. Q2 figures are from the company’s August 6, 2026 results release.
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How iGaming contributes
DraftKings uses “iGaming” for online casino games, including digital slots, blackjack, roulette and baccarat. The business generated $1,804.6 million in FY2025 revenue, up 19.7% year over year. The company attributed the increase to growth in monthly unique payers and average revenue per monthly unique payer, along with improved iGaming handle and margin.
In the first half of 2026, iGaming revenue was $923.2 million, 8.2% higher than in the same period of 2025. For Q2 2026 alone, it was $461.9 million, up 7.5% year over year. These reported results make iGaming DraftKings’ second-largest revenue engine, although it is available in fewer jurisdictions than the sportsbook.
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What drives growth per customer
DraftKings’ revenue depends not only on how many people use its products but also on how often they play and how much revenue the company earns from them. The company calls average monthly unique payers MUPs and reports average revenue per monthly unique payer as ARPMUP.
| Metric | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
| Average monthly unique payers | 2.7 million | 3.7 million | 4.0 million |
| Average revenue per monthly unique payer | $113 | $106 | $125 |
For FY2025, total revenue grew 27.0%, while Sportsbook and iGaming revenue combined grew 27.7%. DraftKings said the latter increase reflected 7.9% growth in MUPs and 17.9% growth in ARPMUP. The rise in ARPMUP was driven principally by the sportsbook margin increasing from 6.0% in 2024 to 7.1% in 2025, as well as improved iGaming handle and margin. Those are company explanations; they do not mean revenue per customer will rise every year.
Quarterly figures illustrate that variability. In Q2 2026, MUPs reached 3.6 million, up approximately 9% year over year, while ARPMUP was $132, down approximately 13%, or $19. DraftKings attributed that decline primarily to customer-friendly sports outcomes and promotions affecting Sportsbook and Predictions. More active customers therefore do not automatically translate into higher revenue per customer or higher total revenue in a given quarter.
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Other offerings and changing revenue categories
DFS and digital lottery courier services add revenue beyond betting and casino play. Prediction markets also appear in DraftKings’ disclosures, but the company’s reporting categories are not identical across periods: prediction-market revenue was included within Sports Revenue in the Q2 2026 release, while prediction markets were among the activities described within Other in the FY2025 filing. The released totals do not establish a standalone prediction-market revenue figure, so one should not be inferred from them.
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Availability, promotions and costs affect profitability
Revenue potential depends on where DraftKings can legally offer each product. As of August 6, 2026, the company reported mobile sportsbook operations in 27 states, Washington, D.C. and Puerto Rico, representing about 53% of the U.S. population. Its iGaming footprint covered 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 company-reported footprint figures for that date, not a claim that every product is available to every resident in those places.
Promotions can help acquire and retain customers, but incentives reduce sportsbook revenue. Gaming taxes, payment-processing costs, marketing, technology, general and administrative expenses also shape how much revenue remains to cover operating costs. In FY2025, cost of revenue was 58.7% of revenue, down from 61.9% in 2024. DraftKings attributed the improvement mainly to lower payment-processing fees as a share of revenue and better promotional reinvestment, partly offset by higher gaming-tax rates in some jurisdictions.
Latest reported quarter and company guidance
In Q2 2026, DraftKings reported $1,443.2 million in revenue, down 4.6% year over year. Sports Revenue was $891.9 million, down 10.6%; iGaming Revenue was $461.9 million, up 7.5%; and Other Revenue was $89.4 million, up 5.2%. The contrast between rising sports activity and falling Sports Revenue shows how outcomes and incentives can move the sportsbook result independently of wagering volume.
On August 6, 2026, DraftKings maintained its FY2026 revenue guidance of $6.5 billion to $6.9 billion and Adjusted EBITDA guidance of $700 million to $900 million. These are forward-looking company estimates, not achieved results. Adjusted EBITDA is a company-defined non-GAAP measure and should not be confused with GAAP net income.
Quick Recap
What the business model means in practice
- Sportsbook is the largest revenue source: it contributed about 63% of FY2025 revenue, but its realized revenue can fluctuate with results and promotions.
- iGaming is a substantial second engine: it supplied about 30% of FY2025 revenue and continued growing in the first half of 2026.
- Handle and volume show activity, not earnings: payouts, margin and incentives determine how much wagering activity becomes reported revenue.
- Growth has costs and geographic limits: customer acquisition, taxes, operating expenses and regulated-market availability all affect results.
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