Business Combinations (Tables)

12 Months Ended

Dec. 31, 2025

Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]

Summary of Consideration Transferred at Closing

The following is a summary of the consideration issued or paid on the Railbird Acquisition Date:


Cash consideration	$	18,296
Equity consideration (1)	28,708
Contingent consideration (2)	37,785
Total consideration	$	84,789

(1)Includes the issuance of approximately 0.9 million shares of DraftKings Inc.’s Class A common stock issued at $33.62 per share.

(2)The Company recorded a fair value estimate of the contingent consideration, as disclosed in “Note 8 – Fair Value Measurement”. Contingent payments have a maximum value of up to $200 million, 47.5% of which will be contingent consideration and 52.5% of which will be recorded as compensation under ASC 805. The payments will be settled, at the Company’s option, in shares of the Company’s Class A common stock or in a combination of shares of the Company’s Class A common stock and cash; provided that, for each Railbird equityholder that is an accredited investor, shares of the Company’s Class A common stock will represent at least 70% of the contingent consideration such equityholder receives. The Company’s Class A common stock to be issued as contingent payment will be valued on the basis of a 30-day volume-weighted average price of the Company’s Class A common stock determined at or around the issuance thereof based on certain post-closing performance metrics.

The following is a summary of the consideration issued or paid on the Jackpocket Closing Date:


Cash consideration	$	452,322
Equity consideration (1)	320,783
Total consideration	$	773,105

(1)Includes the issuance of approximately 7.5 million shares of DraftKings Inc.’s Class A common stock issued at $41.90 per share and 6.2 million of options exercisable for shares of DraftKings Inc.’s Class A common stock, which were issued to certain Jackpocket employee option holders in exchange for their Jackpocket options.

The following is a summary of the consideration issued or paid on the Simplebet Closing Date:


Cash consideration	$	35,965
Equity consideration (1)	45,145
Contingent consideration (2)	53,535
Total consideration	$	134,645

(1)Includes the issuance of approximately 1.0 million shares of DraftKings Inc.’s Class A common stock issued at $43.97 per share.

(2)Contingent consideration of up to 3.5 million shares of DraftKings Inc.’s Class A common stock may be payable through December 31, 2026, subject to the achievement of certain future performance targets for the Company as a whole. The Company recorded a fair value estimate of the contingent consideration, as disclosed in “Note 8 – Fair Value Measurement”.

Summary of Purchase Price Allocation

The following table summarizes the preliminary fair value of the assets acquired and liabilities assumed in connection with the consummation of the Railbird Transaction on the Railbird Acquisition Date. The values set forth below are preliminary, pending finalization of valuation analyses:


Cash and cash equivalents	$	181
Restricted Cash	1,734
Intangible assets	58,090
Deposits and other non-current assets	6
Total identifiable assets acquired	60,011
Liabilities assumed:
Accounts payable and accrued expenses	52
Other long-term liabilities	15,365
Total liabilities assumed	15,417
Net assets acquired (a)	44,594
Purchase consideration (b)	$	84,789
Goodwill (b) – (a)	$	40,195

The following table summarizes the fair value of the assets acquired and liabilities assumed in connection with the consummation of the Jackpocket Transaction on the Jackpocket Closing Date:


Cash and cash equivalents	$	45,999
Cash reserved for users	23,349
Receivables reserved for users	9,092
Prepaid expenses and other current assets	4,151
Property and equipment	1,523
Intangible assets	269,736
Operating lease right-of-use assets	2,579
Deposits and other non-current assets	136
Total identifiable assets acquired	356,565
Liabilities assumed:
Accounts payable and accrued expenses	33,961
Liabilities to users	16,877
Operating lease liabilities	2,580
Other long-term liabilities	80,463
Total liabilities assumed	133,881
Net assets acquired (a)	222,684
Purchase consideration (b)	773,105
Goodwill (b) – (a)	$	550,421

The following table summarizes the fair value of the assets acquired and liabilities assumed in connection with the consummation of the Simplebet Transaction on the Simplebet Closing Date:


Cash and cash equivalents	$	5,002
Accounts receivable	931
Prepaid expenses and other current assets	282
Operating lease right-of-use assets	144
Property and equipment	32
Intangible assets	62,120
Total identifiable assets acquired	68,511
Liabilities assumed:
Accounts payable and accrued expenses	4,657
Operating lease liabilities	144
Other long-term liabilities	14,551
Total liabilities assumed	19,352
Net assets acquired (a)	49,159
Purchase consideration (b)	134,645
Goodwill (b) - (a)	$	85,486