DraftKings has raised $445 million in funding from major sports leagues and media companies. In 2015, it collected $1.2 billion in entry fees and signed a $250 million, 3-year advertising deal with ESPN. While DraftKings launched in 2012 focusing on daily fantasy sports for MLB, it later expanded to other sports and signed marketing deals. However, in December 2015 the New York Supreme Court ruled DraftKings is gambling and banned its operation in the state, which could influence other states to take similar action.

1. Vishal Modi
vmmodi
March 23, 2016

2. Products

3. Financials
• Raised $445M in 7 rounds
• Funding from MLB, NHL, MLS, Fox
• Estimated $1.2B of entry fees collected in 2015
• 3 year $250M advertising contract with ESPN

4. History
DraftKings launches with daily fantasy for MLB
2012

5. History
Reaches 50,000 active, 1M registered users
2012 Feb
2014

6. History
“Official Daily Fantasy Game” for MLB, NHL
2012 Feb
2014
Apr
2015

7. History
Signs exclusive 3 year marketing contract with
ESPN
2012 Feb
2014
Apr
2015
July
2015

8. History
2012 Feb
2014
Apr
2015
July
2015
NY Supreme Court rules DraftKings is gambling,
bans operation
Dec
2015

9. Secret Sauce
• Massive advertising
campaign
• Daily games,
multitude of options
• Not “technically”
gambling

10. Competition

11. Prediction
• DraftKings forced to stop operating in NY
• DFS’ 2nd largest market - $267M in entry fees
• Illinois, Texas, Nevada Attorney Generals
condemn DFS
• Will likely be considered gambling nationally

12. Questions