DraftKings Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>DraftKings Inc. has filed its 2023 10-K report, detailing its financial performance and corporate information for the fiscal year ending December 31, 2023.</b>

AI Summary

DraftKings Inc. (DKNG) filed a Annual Report (10-K) with the SEC on February 16, 2024. DraftKings Inc. reported its 2023 fiscal year results in its 10-K filing. The company's fiscal year ended on December 31, 2023. The filing was submitted on February 16, 2024. The company's principal executive offices are located at 222 Berkeley Street, Boston, MA. DraftKings Inc. was formerly known as New Duke Holdco, Inc. before a name change on September 17, 2021.

Why It Matters

For investors and stakeholders tracking DraftKings Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of DraftKings' financial health, operational performance, and strategic positioning for the past fiscal year, crucial for investors and stakeholders to assess the company's trajectory. The detailed financial statements and risk factors within the report offer insights into the company's growth, profitability, and potential challenges in the competitive online gaming and sports betting market.

Risk Assessment

Risk Level: — DraftKings Inc. shows moderate risk based on this filing. The company operates in a highly regulated and competitive industry, facing risks related to evolving state-by-state regulations, technological advancements, and consumer preferences, which could impact its financial performance and growth prospects.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to understand DraftKings' performance and outlook in the dynamic online gaming sector.

Key Numbers

• 473,619,528 — Deposits and Other Noncurrent Assets (As of 2023-12-31)
• 393,013,951 — Deposits and Other Noncurrent Assets (As of 2022-12-31)

Key Players & Entities

• DraftKings Inc. (company) — Filer name
• New Duke Holdco, Inc. (company) — Former company name
• 2023-12-31 (date) — Fiscal year end
• 2024-02-16 (date) — Filing date
• 222 Berkeley Street, Boston, MA (address) — Business address

FAQ

Industry Context

DraftKings operates in the online gaming and sports betting industry, a sector characterized by rapid technological innovation, evolving regulatory landscapes across different jurisdictions, and intense competition.

Regulatory Implications

The online gaming industry is subject to significant regulatory oversight, with varying legal frameworks and licensing requirements in different states and countries, impacting market access and operational compliance.

What Investors Should Do

1. Analyze DraftKings' revenue streams and growth drivers for FY2023.
2. Evaluate the company's liquidity and debt position as detailed in the financial statements.
3. Assess the key risks and uncertainties outlined in the risk factors section for potential impacts on future performance.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K filing.
• 2024-02-16: Filing Date — Date the 10-K was officially submitted to the SEC.

Year-Over-Year Comparison

This filing represents the annual report for the fiscal year ending December 31, 2023, providing a comprehensive update compared to previous filings.

Key Financial Figures

• $0.0001 — which registered Class A Common Stock, $0.0001 par value DKNG The Nasdaq Stock Market
• $3,665.4 m — 2023, 2022 and 2021, we had revenue of $3,665.4 million, $2,240.5 million, and $1,296.0 m
• $2,240.5 m — 21, we had revenue of $3,665.4 million, $2,240.5 million, and $1,296.0 million, respective
• $1,296.0 m — $3,665.4 million, $2,240.5 million, and $1,296.0 million, respectively, average monthly un
• $113 — d average revenue per MUP ("ARPMUP") of $113, $96, and $67, respectively. Refer to t
• $96 — age revenue per MUP ("ARPMUP") of $113, $96, and $67, respectively. Refer to the se
• $67 — ue per MUP ("ARPMUP") of $113, $96, and $67, respectively. Refer to the section ent

Filing Documents

• dkng-20231231.htm (10-K) — 2206KB
• exhibit41-xspecimenclass.htm (EX-4.1) — 11KB
• exhibit211-xdkxsubsidiar.htm (EX-21.1) — 5KB
• bdo10kconsent2023.htm (EX-23.1) — 2KB
• a202310-kxex311forsignature.htm (EX-31.1) — 11KB
• a202310-kxex312forsignature.htm (EX-31.2) — 11KB
• a202310k-ex321forsignature.htm (EX-32.1) — 5KB
• a202310-kxex322forsignature.htm (EX-32.2) — 5KB
• a971executivecompensatio.htm (EX-97.1) — 13KB
• a971executivecompensatio001.jpg (GRAPHIC) — 34KB
• a971executivecompensatio002.jpg (GRAPHIC) — 218KB
• a971executivecompensatio003.jpg (GRAPHIC) — 253KB
• a971executivecompensatio004.jpg (GRAPHIC) — 251KB
• a971executivecompensatio005.jpg (GRAPHIC) — 93KB
• dkng-20231231_g1.jpg (GRAPHIC) — 10KB
• dkng-20231231_g2.jpg (GRAPHIC) — 362KB
• dkng-20231231_g3.jpg (GRAPHIC) — 54KB
• dkng-20231231_g4.jpg (GRAPHIC) — 62KB
• dkng-20231231_g5.jpg (GRAPHIC) — 138KB
• exhibit211-xdkxsubsidiar001.jpg (GRAPHIC) — 134KB
• exhibit211-xdkxsubsidiar002.jpg (GRAPHIC) — 138KB
• exhibit211-xdkxsubsidiar003.jpg (GRAPHIC) — 131KB
• exhibit41-xspecimenclass001.jpg (GRAPHIC) — 221KB
• exhibit41-xspecimenclass002.jpg (GRAPHIC) — 130KB
• 0001883685-24-000010.txt (&nbsp;) — 14885KB
• dkng-20231231.xsd (EX-101.SCH) — 71KB
• dkng-20231231_cal.xml (EX-101.CAL) — 123KB
• dkng-20231231_def.xml (EX-101.DEF) — 374KB
• dkng-20231231_lab.xml (EX-101.LAB) — 991KB
• dkng-20231231_pre.xml (EX-101.PRE) — 640KB
• dkng-20231231_htm.xml (XML) — 1725KB

Business

Business 3 Item 1A.

Risk Factors

Risk Factors 12 Item 1B. Unresolved Staff Comments 44 Item 2.

Properties

Properties 44 Item 3.

Legal Proceedings

Legal Proceedings 45 Item 4. Mine Safety Disclosures 53 Part II. Item 5. Market for the Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 54 Item 6. [Reserved] 55 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 56 Item 7A.

Quantitative and Qualitative Disclosures About Market Risks

Quantitative and Qualitative Disclosures About Market Risks 67 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 67 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 67 Item 9A.

Controls and Procedures

Controls and Procedures 67 Item 9B. Other Information 68 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 68 Part III. Item 10. Directors, Executive Officers and Corporate Governance 69 Item 11.

Executive Compensation

Executive Compensation 69 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 69 Item 13. Certain Relationships and Related Transactions, and Director Independence 69 Item 14. Principal Accountant Fees and Services 69 Part IV. Item 15. Exhibits, Financial Statement Schedules 70 Item 16. Form 10-K Summary 77

Signatures

Signatures 78 1 Cautionary Statement Regarding Forward-Looking Statements This Annual Report on Form 10-K (this "Annual Report") contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 that reflect future plans, estimates, beliefs and expected performance. The forward-looking statements depend upon events, risks and uncertainties that may be outside of our control. The words "anticipate," "believe," "continue," "could," "estimate," "expect," "intends," "may," "might," "plan," "possible," "potential," "predict," "project," "should," "will," "would," "forecast," "propose," and similar expressions or the negative of these words may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. You are cautioned that our business and operations are subject to a variety of risks and uncertainties, many of which are beyond our control, and, consequently, our actual results may differ materially from those projected. Factors that could cause or contribute to such differences include, but are not limited to, those identified below and those discussed in the section entitled "Risk Factors" included elsewhere in this Annual Report. Any statements contained herein that are not statements of historical fact may be forward-looking statements. factors relating to our business, operations and financial performance, including: our ability to effectively compete in the global entertainment and gaming industries; our ability to successfully acquire and integrate new operations; our ability to obtain and maintain licenses with gaming authorities; our inability to recognize deferred tax assets and tax loss carryforwards; market and global conditions and economic factors beyond our control, as well as the potential impact of general economic conditions, including inflation and rising interest rates, on our liquidity, operation

Business

Item 1. Business. Overview We are a digital sports entertainment and gaming company. We provide users with online sports betting ("Sportsbook"), online casino ("iGaming") and daily fantasy sports ("DFS") product offerings, as well as retail sportsbook, media and other consumer product offerings. We are also involved in the design and development of sports betting and casino gaming software for online and retail sportsbooks and iGaming operators. Our mission is to make life more exciting by responsibly creating the world's favorite real-money games and betting experiences. We accomplish this by creating an environment where our users can find enjoyment and fulfillment through Sportsbook, iGaming, and DFS, as well as media and other online consumer product offerings. We are also highly focused on our responsibility as a steward of this new era in real-money gaming. Our ethics guide our decision making, with respect to both the tradition and integrity of sports and our investments in regulatory compliance and consumer protection. We continue to make deliberate and substantial investments in support of our mission and long-term growth. For example, we have invested in our product offerings and technology in order to continuously launch new product innovations; improve marketing, merchandising, and operational efficiency through data science; and deliver a great user experience. We also make significant investments in sales and marketing and incentives to grow and retain our paid user base, including personalized cross-product offers and promotions, and promote brand awareness to attract the "skin-in-the-game" sports fan. Together, these investments have enabled us to create a leading product built on scalable technology, while attracting a user base that has resulted in the rapid growth of our business. Our priorities are to (a) continue to invest in our product offerings, (b) launch our product offerings in new jurisdictions, (c) create replicable and predict