0001772757-22-000007 | 10-K | XBRL Viewer

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 2,152,892	$ 1,817,258
Cash reserved for users	476,950	287,718
Receivables reserved for users	51,949	30,249
Accounts receivables	45,864	44,522
Prepaid expenses and other current assets	25,675	14,558
Total current assets	2,753,330	2,194,305
Property and equipment, net	46,019	40,827
Intangible assets, net	535,017	555,930
Goodwill	615,655	569,603
Operating lease right-of-use assets	63,831	68,077
Equity method investment	9,825	2,955
Deposits and other non-current assets	45,377	7,632
Total assets	4,069,054	3,439,329
Current liabilities:
Accounts payable and accrued expenses	387,737	223,633
Liabilities to users	528,874	317,942
Operating lease liabilities, current portion	12,814	12,837
Total current liabilities	929,425	554,412
Convertible notes, net of issuance costs	1,248,452	0
Non-current operating lease liabilities	57,341	68,775
Warrant liabilities	26,911	65,444
Long-term income tax liabilities	79,125	72,066
Other long-term liabilities	49,272	47,287
Total liabilities	2,390,526	807,984
Commitments and contingent liabilities (Note 16)
Stockholders’ equity:
Treasury stock, at cost; 7,130 and 6,807 shares as of December 31, 2021 and December 31, 2020, respectively	(306,614)	(288,784)
Additional paid-in capital	5,702,388	5,067,135
Accumulated deficit	(3,753,814)	(2,230,619)
Accumulated other comprehensive income	36,488	83,534
Total stockholders’ equity	1,678,528	2,631,345
Total liabilities and stockholders’ equity	4,069,054	3,439,329
Class A Common Stock
Stockholders’ equity:
Common stock	41	40
Class B Common Stock
Stockholders’ equity:
Common stock	$ 39	$ 39

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands	Dec. 31, 2021	Dec. 31, 2020
Treasury stock (in shares)	7,130	6,807
Class A Common Stock
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, authorized (in shares)	900,000	900,000
Common stock, issued (in shares)	414,911	403,110
Common stock, outstanding (in shares)	407,781	396,303
Class B Common Stock
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, authorized (in shares)	900,000	900,000
Common stock, issued (in shares)	393,014	393,014
Common stock, outstanding (in shares)	393,014	393,014

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Income Statement [Abstract]
Revenue	$ 1,296,025	$ 614,532	$ 323,410
Cost of revenue	794,162	346,589	103,889
Sales and marketing	981,500	495,192	185,269
Product and technology	253,655	168,633	55,929
General and administrative	828,325	447,374	124,868
Loss from operations	(1,561,617)	(843,256)	(146,545)
Other income (expense):
Interest income (expense), net	1,957	(1,070)	1,348
Gain (loss) on remeasurement of warrant liabilities	30,065	(387,565)	0
Other income, net	11,951	0	3,000
Loss before income tax provision (benefit)	(1,517,644)	(1,231,891)	(142,197)
Income tax provision (benefit)	8,269	(622)	58
(Gain) loss from equity method investment	(2,718)	566	479
Net Loss attributable to common shareholders	$ (1,523,195)	$ (1,231,835)	$ (142,734)
Loss per share attributable to common shareholders:
Basic (in dollars per share)	$ (3.78)	$ (4.03)	$ (0.77)
Diluted (in dollars per share)	$ (3.78)	$ (4.03)	$ (0.77)

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Statement of Comprehensive Income [Abstract]
Net loss	$ (1,523,195)	$ (1,231,835)	$ (142,734)
Other comprehensive (loss) income
Foreign currency translation adjustments, net of nil tax	(47,046)	83,534	0
Comprehensive loss	$ (1,570,241)	$ (1,148,301)	$ (142,734)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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+ Details

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Statement of Comprehensive Income [Abstract]
Foreign currency translation adjustments, tax	$ 0	$ 0	$ 0

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) shares in Thousands, $ in Thousands	Total	Class A Common Stock	Series F Preferred Stock	Convertible Redeemable Preferred Stock Convertible Redeemable Preferred Stock	Common Stock Class A Common Stock	Common Stock Class B Common Stock	Common Stock Series F Preferred Stock	Additional Paid in Capital	Additional Paid in Capital Series F Preferred Stock	Accumulated Deficit	Accumulated Other Comprehensive Income	Treasury Stock Amount	Reported	Reported Convertible Redeemable Preferred Stock Convertible Redeemable Preferred Stock	Reported Common Stock Class A Common Stock	Reported Common Stock Class B Common Stock	Reported Additional Paid in Capital	Reported Accumulated Deficit	Reported Accumulated Other Comprehensive Income	Reported Treasury Stock Amount	Conversion of shares	Conversion of shares Convertible Redeemable Preferred Stock Convertible Redeemable Preferred Stock	Conversion of shares Common Stock Class A Common Stock	Conversion of shares Additional Paid in Capital
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Conversion of shares due to merger recapitalization																					$ 261,277	$ (261,277)	$ (366)	$ 261,643
Conversion of shares due to merger recapitalization (in shares)																						(111,969)	(200,756)
Balance at Dec. 31, 2018	$ 76,050			$ 0	$ 18			$ 932,082		$ (856,050)			$ (185,227)	$ 261,277	$ 384		$ 670,439	$ (856,050)
Balance (in shares) at Dec. 31, 2018				0	183,253									111,969	384,009
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense	17,613							17,613
Equity consideration issued for acquisitions	0
Shares issued in offerings, net of issuance costs of $41,536	439							439
Shares issued in offerings, net of issuance costs of $41,536 (in shares)					674
Issuance of Common Stock for In-kind Transfer	1,364							1,364
Issuance of Common Stock for In-kind Transfer (in shares)					290
Exercise of stock options	1,148							1,148
Exercise of stock options (in shares)					1,017
Repurchase of preferred stock and issuance of promissory note	(11,722)							(11,722)
Repurchase of preferred stock and issuance of promissory note (in shares)					(1,626)
Recapitalization of issuance of Series F preferred stock			$ 7,824						$ 7,824
Recapitalization of issuance of Series F preferred stock (in shares)							1,018
Issuance of warrants	438							438
Foreign currency translation, net of nil tax	0
Net loss	(142,734)									(142,734)
Balance at Dec. 31, 2019	(49,580)			$ 0	$ 18	$ 0		949,186		(998,784)	$ 0	$ 0	$ (307,951)	$ 258,371	$ 390	$ 0	$ 690,443	$ (998,784)	$ 0	$ 0
Balance (in shares) at Dec. 31, 2019				0	184,626	0								110,250	389,610	0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Conversion of shares due to merger recapitalization																					$ 258,371	$ (258,371)	$ (372)	$ 258,743
Conversion of shares due to merger recapitalization (in shares)																						(110,250)	(204,984)
Issuance of Series F preferred stock (in shares)					1,526
Issuance of Series F preferred stock	11,000							11,000
Stock-based compensation expense	325,038					$ 39		324,999
Stock-Based compensation expense (in shares)						393,014
Merger recapitalization, net repurchase of $7,192 and issuance costs of $11,564	(18,756)							(18,756)
Merger recapitalization, net repurchase of $7,192 and issuance costs of $11,564 (in shares)					(278)
Conversion of Convertible Notes to common shares	112,545				$ 1			112,544
Conversion of Convertible Notes to common shares (in shares)					11,254
DEAC shares recapitalized, net of redemptions and equity issuance costs of $10,631	542,334	$ 542,300			$ 7			542,327
DEAC shares recapitalized, net of redemptions and equity issuance costs of $10,631 (in shares)					74,122
Equity consideration issued for acquisitions	789,064				$ 4			789,060
Equity consideration issued for acquisitions (in shares)					40,739
Shares issued for earn outs - SBTech (in shares)					720
Shares issued for earn outs - DEAC and DK					$ 1			(1)
Shares issued for earn outs - DEAC and DK (in shares)					5,280
Shares issued for exercise of warrants	649,132				$ 2			649,130
Shares issued for exercise of warrants (in shares)					17,698
Shares issued in offerings, net of issuance costs of $41,536	1,680,067				$ 4			1,680,063
Shares issued in offerings, net of issuance costs of $41,536 (in shares)					36,820
Exercise of stock options	$ 27,587				$ 2			27,585
Exercise of stock options (in shares)	30,603				14,900
Purchase of treasury stock	$ (288,785)				$ (1)							(288,784)
Purchase of treasury stock (in shares)					(6,807)
RSU Vesting					$ 2			(2)
RSU Vesting (in shares)					15,703
Foreign currency translation, net of nil tax	83,534										83,534
Net loss	(1,231,835)									(1,231,835)
Balance at Dec. 31, 2020	2,631,345			$ 0	$ 40	$ 39		5,067,135		(2,230,619)	83,534	(288,784)
Balance (in shares) at Dec. 31, 2020				0	396,303	393,014
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense	683,293							683,293
Purchase of capped call options	(123,970)							(123,970)
Equity consideration issued for acquisitions	33,149							33,149
Equity consideration issued for acquisitions (in shares)					520
Shares issued for exercise of warrants	9,205							9,205
Shares issued for exercise of warrants (in shares)					337
Exercise of stock options	$ 31,479				$ 1			31,478
Exercise of stock options (in shares)	10,944				9,421
Purchase of treasury stock	$ (17,830)											(17,830)
Purchase of treasury stock (in shares)					(323)
RSU Vesting (in shares)					1,523
Foreign currency translation, net of nil tax	(47,046)										(47,046)
Other	2,098							2,098
Net loss	(1,523,195)									(1,523,195)
Balance at Dec. 31, 2021	$ 1,678,528				$ 41	$ 39		$ 5,702,388		$ (3,753,814)	$ 36,488	$ (306,614)
Balance (in shares) at Dec. 31, 2021					407,781	393,014

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) (Parenthetical) $ in Thousands	12 Months Ended
	Dec. 31, 2020 USD ($)
Statement of Stockholders' Equity [Abstract]
Foreign currency translation adjustments, tax	$ 0
Merger recapitalization, repurchase	7,192
Merger recapitalization, issuance costs	11,564
DEAC shares recapitalized, Redemptions and equity issuance costs	10,631
Shares issued in Offering, issuance costs	$ 41,536

CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Cash Flows from Operating Activities:
Net loss	$ (1,523,195)	$ (1,231,835)	$ (142,734)
Adjustments to reconcile net loss to net cash flows used in operating activities:
Depreciation and amortization	121,138	77,410	13,636
Non-cash interest expense	2,109	3,114	424
Stock-based compensation expense, including value of Class B common shares	683,293	325,038	17,613
(Gain) loss on remeasurement of warrant liabilities	(30,065)	387,565	0
(Gain) loss from equity method investment	(2,718)	566	479
Gain on initial equity method investment	0	0	(3,000)
Gain on marketable equity securities and other financial assets	(11,311)	0	0
Deferred income taxes	(15,509)	(2,279)	54
Other expenses, net	0	0	2,711
Change in operating assets and liabilities, net of effect of acquisitions:
Receivables reserved for users	(21,700)	(10,421)	1,506
Accounts receivable	(1,787)	(13,802)	(3,118)
Prepaid expenses and other current assets	(10,078)	1,152	(6,436)
Deposits and other non-current assets	(6,458)	(3,730)	(930)
Operating leases, net	(1,059)	2,640	0
Accounts payable and accrued expenses	167,927	103,574	27,946
Settlement liability	0	0	(3,400)
Other long-term liabilities	5,746	12,355	18,405
Long-term income tax liability	13,227	(411)	0
Liabilities to users	210,932	154,907	30,266
Net cash flows used in operating activities	(419,508)	(194,157)	(46,578)
Cash Flows from Investing Activities:
Purchases of property and equipment	(15,925)	(11,752)	(16,703)
Cash paid for internally developed software costs	(46,542)	(27,489)	(14,816)
Acquisition of gaming licenses	(35,809)	(6,830)	(10,752)
Purchase of marketable equity securities and other financial assets	(25,000)	0	0
Cash paid for acquisitions, net of cash acquired	(64,970)	(178,645)	0
Other investing activities, net	(6,776)	(2,625)	0
Net cash flows used in investing activities	(195,022)	(227,341)	(42,271)
Cash Flow from Financing Activities:
Proceeds from revolving credit line	0	37,750	3,000
Repayments of revolving credit line	0	(44,500)	0
Cash buyout of unaccredited investors	0	(7,192)	0
Proceeds from issuance of redeemable convertible stock, net	0	0	7,824
Repurchase of preferred stock	0	0	(722)
Issuance costs related to merger recapitalization	0	(11,564)	0
Proceeds from issuance of convertible notes, net	1,248,025	41,077	68,087
Purchase of capped call options	(123,970)	0	0
Proceeds from recapitalization of DEAC shares, net of issuance costs	0	669,825	0
Proceeds from shares issued for warrants	693	202,034	0
Proceeds from issuance of Class A common stock, net of issuance costs	0	1,680,067	439
Purchase of treasury stock	(17,830)	(288,785)	0
Proceeds from exercise of stock options	31,479	27,587	1,148
Other financing activities	416	0	0
Net cash flows provided by financing activities	1,138,813	2,306,299	79,776
Effect of foreign exchange rates on cash and cash equivalents and restricted cash	583	(358)	0
Net increase (decrease) in cash, cash equivalents and restricted cash	524,866	1,884,443	(9,073)
Cash and cash equivalents and restricted cash at the beginning of period	2,104,976	220,533	229,606
Cash and cash equivalents and restricted cash, end of period	2,629,842	2,104,976	220,533
Disclosure of cash, cash equivalents and restricted cash:
Cash and cash equivalents	2,152,892	1,817,258	76,533
Cash reserved for users	476,950	287,718	144,000
Total cash, cash equivalents and restricted cash, end of period	2,629,842	2,104,976	220,533
Supplemental Disclosure of Noncash Investing and Financing Activities:
Non-cash Redemption of Series F redeemable convertible preferred to stock through issuance of Promissory Note	0	0	11,000
Conversion of convertible notes and accrued interest to common shares	0	112,545	0
Increase in net liabilities acquired from DEAC	0	2,514	0
Increase in accounts payable and accrued expenses from gaming licenses, net	(4,976)	3,976	1,000
Increase in accounts payable and accrued expenses from property and equipment and internally developed software costs	1,218	990	0
Equity consideration issued for acquisitions	33,149	789,064	0
Supplemental Disclosure of Cash Activities:
Increase in cash reserved for users	189,232	143,718	32,302
Cash paid for interest	0	417	260
Cash paid for income taxes	$ 5,632	$ 1,442	$ 0

Description of Business	12 Months Ended
Description of Business	Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business	Description of Business DraftKings Inc., a Nevada corporation (the “Company” or “DraftKings”), was incorporated in Nevada as DEAC NV Merger Corp., a wholly owned subsidiary of our legal predecessor, Diamond Eagle Acquisition Corp. (“DEAC”), a special purpose acquisition company. On April 23, 2020, DEAC consummated the transactions contemplated by the Business Combination Agreement (the “Business Combination”) dated December 22, 2019, as amended on April 7, 2020 and, in connection therewith, (i) DEAC merged with and into the Company, whereby the Company survived the merger and became the successor issuer to DEAC by operation of Rule 12g-3(a) promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), (ii) the Company changed its name to “DraftKings Inc.,” (iii) the Company acquired DraftKings Inc., a Delaware corporation (“Old DK”), by way of a merger and (iv) the Company acquired all of the issued and outstanding share capital of SBTech (Global) Limited (“SBTech”). Upon consummation of the preceding transactions, Old DK and SBTech became wholly owned subsidiaries of the Company. DraftKings is a digital sports entertainment and gaming company. The Company’s business-to-consumer (“B2C”) segment provides users with daily fantasy sports (“DFS”), sports betting (“Sportsbook”) and online casino (“iGaming”) products, as well as media and other online consumer product offerings. The Company’s business-to-business (“B2B”) segment is involved in the design, development and licensing of sports betting and casino gaming software for its Sportsbook and casino gaming products. In May 2018, the Supreme Court (the “Court”) struck down on constitutional grounds the Professional and Amateur Sports Protection Act of 1992 (“PASPA”), a law that prohibited most states from authorizing and regulating sports betting. Since the Court’s decision, many states have legalized sports betting. As of December 31, 2021, 29 U.S. states, the District of Columbia and Puerto Rico have legalized some form of sports betting. Of those 31 legal jurisdictions, 23 have legalized online sports betting. Of those 23 jurisdictions, 18 are live, and DraftKings operates in 15 of them. The jurisdictions with statutes legalizing iGaming are Connecticut, Delaware, Michigan, New Jersey, Pennsylvania and West Virginia. As of December 31, 2021, the Company operates online Sportsbooks in Arizona, Colorado, Connecticut, Illinois, Indiana, Iowa, Michigan, New Hampshire, New Jersey, Oregon (B2B), Pennsylvania, Tennessee, Virginia, West Virginia and Wyoming and has retail Sportsbooks in Colorado, Connecticut, Illinois, Iowa, Louisiana, Mississippi, New Hampshire, New Jersey and New York. As of December 31, 2021, the Company offers iGaming products in Connecticut, Michigan, New Jersey, Pennsylvania and West Virginia. The Company also has arrangements in place with land-based casinos to expand operations into additional states upon the passing of relevant legislation, the issuance of related regulations and the receipt of required licenses. The novel coronavirus (“COVID-19”) has adversely impacted global commercial activity, disrupted supply chains and contributed to significant volatility in financial markets. Beginning in 2020 and continuing into 2021, the COVID-19 pandemic adversely impacted many different industries. The ongoing COVID-19 pandemic, including the emergence of new variants or strains of COVID-19, could have a continued material adverse impact on economic and market conditions and trigger a period of global economic slowdown. The rapid development and fluidity of this situation precludes any prediction as to the extent and the duration of the impact of COVID-19. The COVID-19 pandemic therefore presents material uncertainty and risk with respect to us and our performance and could affect our financial results in a materially adverse way. Since the start of the COVID-19 pandemic, the primary impacts to the Company have been the suspension, cancellation and rescheduling of sports seasons and sporting events. Beginning in March 2020 and continuing into the first month of the third quarter of 2020, many sports seasons and sporting events, including the MLB regular season, domestic soccer leagues and European Cup competitions, the NBA regular season and playoffs, the NCAA college basketball tournament, the Masters golf tournament, and the NHL regular season and playoffs, were suspended or cancelled. Starting in the third quarter of 2020 and continuing into the fourth quarter of 2020, major professional sports leagues resumed their activities, many of which were held at limited or reduced capacity. MLB began its season after a three-month delay and also completed the World Series, the NHL resumed its season and completed the Stanley Cup Playoffs, the Masters golf tournament was held, most domestic soccer leagues resumed and several European cup competitions were held, and the NFL season began on its regular schedule. During this period, the NBA also resumed its season, completed the NBA Finals and commenced its 2020-2021 season. The suspension and alteration of sports seasons and sporting events in 2020 reduced customers’ use of, and spending on, the Company’s Sportsbook and DFS product offerings and caused the Company to issue refunds for canceled events. In the year ended December 31, 2021, many sports seasons continued and most sporting events were held as planned (including sporting events postponed from 2020), including the NFL regular season, the NFL Playoffs and Superbowl LV, MLB regular season and the World Series, the NBA regular season and NBA playoffs, the NHL regular season and the NHL Stanley Cup, the NASCAR Cup Series, various NCAA football bowl games, the NCAA college basketball season and tournament, and the UEFA European Football Championship. The return of major sports and sporting events generated significant user interest and activity in our Sportsbook and DFS product offerings. However, the possibility remains that sports seasons and sporting events may be suspended, cancelled or rescheduled due to COVID-19 outbreaks. The Company’s revenue varies based on sports seasons and sporting events amongst other factors, and cancellations, suspensions or alterations resulting from COVID-19 have the potential to adversely affect its revenue, possibly materially. However, the Company’s product offerings that do not rely on sports seasons and sporting events, such as iGaming, may partially offset this adverse impact on revenue. A significant or prolonged decrease in consumer spending on entertainment or leisure activities would also likely have an adverse effect on demand for the Company’s product offerings, reducing cash flows and revenues, and thereby materially harming the Company’s business, financial condition and results of operations. In addition, a materially disruptive resurgence of COVID-19 cases or the emergence of additional variants or strains of COVID-19 could cause other widespread or more severe impacts depending on where infection rates are highest. As steps taken to mitigate the spread of COVID-19 necessitated a shift away from a traditional office environment for many employees, the Company implemented business continuity programs to ensure that employees were safe and that the business continued to function with minimal disruptions to normal work operations while employees worked remotely. The Company will continue to monitor developments relating to disruptions and uncertainties caused by COVID-19.

Summary of Significant Accounting Policies and Practices

12 Months Ended

Dec. 31, 2021

Accounting Policies [Abstract]

Summary of Significant Accounting Policies and Practices

Basis of Presentation and Principles of Consolidation

The accompanying consolidated financial statements are presented in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The consolidated financial statements include the accounts and operations of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions are eliminated upon consolidation. Certain amounts, which are not material, in the prior years’ consolidated financial statements have been reclassified to conform to the current year presentation.

Pursuant to the Business Combination, the merger between a subsidiary of DEAC and Old DK was accounted for as a reverse recapitalization in accordance with U.S. GAAP (the “Reverse Recapitalization”). Under this method of accounting, DEAC was treated as the “acquired” company for financial reporting purposes. Accordingly, for accounting purposes, the Reverse Recapitalization was treated as the equivalent of Old DK issuing stock for the net assets of DEAC, accompanied by a recapitalization. The net assets of DEAC are stated at historical cost, with no goodwill or other intangible assets recorded. The consolidated assets, liabilities and results of operations prior to the Reverse Recapitalization are those of Old DK. The shares and corresponding capital amounts and earnings per share available for common stockholders, prior to the Business Combination, have been retroactively restated as shares reflecting the exchange ratio established in the Business Combination. Further, Old DK was determined to be the accounting acquirer in the SBTech Acquisition, as such, the acquisition is considered a business combination under Accounting Standards Codification (“ASC”), Topic 805, Business Combinations, (“ASC 805”) and was accounted for using the acquisition method of accounting. DraftKings recorded the fair value of assets acquired and liabilities assumed from SBTech. The presented financial information for the year ended December 31, 2020 includes the financial information and activities for SBTech for the period from April 24, 2020 to (and including) December 31, 2020.

Prior to the second quarter of 2021, the Company (a) included changes in “cash reserved for users” as a component within the change in operating assets and liabilities on its condensed consolidated statement of cash flows as the Company historically viewed the change in cash reserved for users as offsetting the change in player liabilities and (b) presented “cash reserved for users” separate from cash and cash equivalents on the condensed consolidated balance sheet.

Beginning with the second quarter of 2021, to reflect the Company's total cash position (“cash and cash equivalents” and “cash reserved for users”) and to conform to Accounting Standards Update (“ASU”) 2016-18, Statement of Cash Flows (Topic 230) — Restricted Cash, the Company revised its presentation to exclude changes in “cash reserved for users” from the “change in operating assets and liabilities” and instead present the total balance as a component of cash and cash equivalents and restricted cash on its condensed consolidated statement of cash flows.

These revisions have no impact on the Company’s previously reported consolidated statements of operations or consolidated balance sheets, including the Company’s cash and cash equivalents and cash reserved for user balances. Prior period amounts have been revised to conform to the current period presentation.

The following table presents the consolidated statement of cash flows line items after giving effect to the revision of presentation as discussed above for 2020 and 2019.


	Year ended December 31, 2020							Year ended December 31, 2019
	Reported		Adjustments			Revised		Reported		Adjustments			Revised
Adjustments to reconcile net loss to net cash flows used in operating activities:
Change in operating assets and liabilities, net of effect of business combinations:
Cash reserved for users	$	(143,718)	$	143,718		$	—	$	(32,302)	$	32,302		$	—
Net cash flows used in operating activities	(337,875)		143,718			(194,157)		(78,880)		32,302			(46,578)

Net increase (decrease) in cash, cash equivalents and restricted cash	1,740,725		143,718			1,884,443		(41,375)		32,302			(9,073)
Cash and cash equivalents and restricted cash at the beginning of period	76,533		144,000		(a)	220,533		117,908		111,698		(b)	229,606
Cash and cash equivalents and restricted cash, end of period	$	1,817,258	$	287,718		$	2,104,976	$	76,533	$	144,000		$	220,533

(a)Represents the cash reserved for user balance as of December 31, 2019 as previously included in the Company's 2020 Annual Report filed with the SEC.

(b)Represents the cash reserved for user balance as of December 31, 2018 as previously included in the Company's Form S-1 filed with the SEC on October 6, 2020.

Comprehensive Loss

Comprehensive loss consists of foreign currency translation adjustments related to the effect of foreign exchange on the value of our assets and liabilities denominated in Euros. The translation gain or loss is included in the consolidated statements of comprehensive loss.

Foreign Currency

Our reporting currency is the U.S. dollar while the functional currency of the Company’s significant non-U.S. subsidiaries is the Euro. The financial statements of the Company’s significant non-U.S. subsidiaries are translated into United States dollars in accordance with ASC 830, Foreign Currency Matters, using period-end rates of exchange for assets and liabilities, and average rates of exchange for the period for revenues, costs and expenses and historical rates for equity. During 2021, 2020 and 2019, foreign currency transactions did not significantly impact net income.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates and assumptions reflected in the financial statements relate to and include, but are not limited to, the valuation and expensing of equity awards, accounting for contingencies and uncertainties, purchase price allocations, including fair value estimates of intangible assets, the estimated useful lives of fixed assets and intangible assets, internally developed software costs and accrued expenses.

Going Concern

Based on anticipated spend and cash received from the Business Combination, exercise of certain warrants, the June 2020 and October 2020 follow-on equity offerings, the issuance of convertible notes in March 2021 and the timing of expenditure assumptions, the Company currently expects that its cash will be sufficient to fund its operating expenses and capital expenditure requirements for at least 12 months after February 18, 2022. The Company has experienced operating losses and negative operating cash flows for the years ended December 31, 2021, 2020 and 2019. While certain geographies may experience improved cash flow, the Company expects to continue to incur annual operating losses and annual negative operating cash flow for the foreseeable future.

Concentration Risks and Uncertainties

Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of operating cash and cash equivalents and cash reserved for users. The Company maintains separate accounts for cash and cash reserved for users primarily across four financial institutions. Some amounts exceed federally insured limits with the majority of cash held in one financial institution. Management believes all financial institutions holding its cash are of high credit quality and does not believe the Company is subject to unusual credit risk beyond the normal credit risk associated with commercial banking relationships.

The Company relies on a limited number of vendors to support operations. In particular, a single vendor is currently the primary provider of web services that allows the Company to host its sports betting, iGaming and daily fantasy sports offerings. Any interruption in the services provided by this supplier could have a material adverse effect on its business, financial condition and results of operations.

The Company's growth prospects and market potential will depend on its ability to obtain and maintain licenses to operate in a number of jurisdictions and if the Company fails to obtain and maintain such licenses its business, financial condition, results of operations and prospects could be impaired.

Business Combinations

The Company accounts for business combinations under the acquisition method of accounting, in accordance with ASC 805, which requires assets acquired and liabilities assumed to be recognized at their fair values as of the acquisition date. Any fair value of purchase consideration in excess of the fair value of the assets acquired less liabilities assumed is recorded as goodwill. The fair values of the assets acquired and liabilities assumed are determined based upon the valuation of the acquired business and involve management making significant estimates and assumptions.

Cash and cash equivalents

Cash and cash equivalents consist of highly liquid, unrestricted savings, money market funds, checking and other bank accounts.

Cash Reserved for Users

The Company maintains separate bank accounts to segregate users’ funds from operational funds. In certain regulated jurisdictions, user funds are held by DK Player Reserve, LLC, a Delaware limited liability company and wholly owned subsidiary of the Company, which was organized for the purpose of protecting users’ funds in the event of creditor claims.

Receivables Reserved for Users

Receivables for user deposits not yet received are stated at the amount the Company expects to collect from a payment processor, which includes an allowance for credit losses if appropriate. These receivables arise, primarily, due to process timing between when a user deposits and when the Company receives that deposit from the payment processor. Receivables also arise due to the securitization policies of certain payment processors. The allowance for credit losses is determined based on the Company’s assessment of the probability of the non-payment of the receivable. This provision is netted against the receivable balance with the loss being recognized within general and administrative expenses in the consolidated statements of operations. The provision at December 31, 2021 and December 31, 2020 did not have a material impact on the Company’s consolidated financial statements.

Accounts Receivables

Accounts receivables are recorded at amortized cost, less any allowance for credit losses. The allowance for credit losses is determined based on the Company’s assessment of the probability of non-payment of the receivable. This provision is netted against the receivable balance with the loss being recognized within general and administrative expenses in the consolidated statements of operations. The provision at December 31, 2021 and December 31, 2020 did not have a material impact on the Company’s consolidated financial statements.

Property and Equipment, Net

Property and equipment are carried at cost, net of accumulated depreciation. Depreciation is computed utilizing the straight-line method over the estimated useful life of the asset. Leasehold improvements depreciation is computed over the shorter of the lease term or estimated useful life of the asset. Additions and improvements are capitalized, while repairs and maintenance are expensed as incurred. Useful lives of each asset class are generally as follows:


Computer equipment and software			3 years
Furniture and fixtures			7 years
Leasehold improvements			Lesser of the lease terms or the estimated useful lives of the improvements, generally 1–10 years

Intangible Assets, Net

The Company’s intangible assets consist of developed technology, customer relationships, internally-developed software, gaming licenses, trademarks and tradenames and digital assets. The related amortization expense is classified as cost of revenue in the consolidated statements of operations. Estimates and assumptions that we must make in estimating the fair value of future acquired technology, user lists and other identifiable intangible assets include future cash flows that we expect to generate from the acquired assets.

Developed Technology

Developed technology primarily relates to the design and development of sports betting and casino gaming software for online and retail sportsbook and casino gaming products acquired from SBTech and other acquisitions and recorded at fair value at the date of acquisition.

Customer Relationships

Customer (or “user”) relationships are finite-lived intangible assets which are amortized over their estimated economic lives. Customer relationships are generally recognized as the result of business combinations.

Internally Developed Software

Software that is developed for internal use is accounted for pursuant to ASC 350-40, Intangibles, Goodwill and Other—Internal-Use Software. Qualifying costs incurred to develop internal-use software are capitalized when (i) the preliminary project stage is completed, (ii) management has authorized further funding for the completion of the project and (iii) it is probable that the project will be completed and perform as intended. These capitalized costs include compensation for employees who develop internal-use software and external costs related to development of internal use software. Capitalization of these costs ceases once the project is substantially complete and the software is ready for its intended purpose. Internally developed software is amortized using the straight-line method over an estimated useful life. All other expenditures, including those incurred in order to maintain an intangible asset’s current level of performance, are expensed as incurred.

Gaming Licenses

The Company incurs fees in connection with applying for and maintaining good standing in jurisdictions via business licenses. Fees incurred in connection with the application and subsequent renewals are capitalized and amortized using the straight-line method over an estimated useful life. In certain arrangements, the Company enters into agreements to operate on a business partner’s license in exchange for upfront fees. These fees are capitalized and amortized over the shorter of their expected benefit under the partnership agreement or estimated useful life.

Trademarks and Tradenames

The Company incurs fees in connection with applying for and maintaining trademarks and tradenames as well as trademarks and tradenames resulting from acquisitions. Fees incurred in connection with the application and subsequent renewals are capitalized and amortized using the straight-line method over an estimated useful life.

Digital Assets

The Company has purchased certain digital assets, including crypto currencies, with cash that is not required to currently support its operations. The Company accounts for digital assets in accordance with ASC 350, Intangibles—Goodwill and Other (Topic 350). Accordingly, if the fair market value at any point during the reporting period is lower than the carrying value an impairment loss equal to the difference will be recognized in the consolidated statement of operations. If the fair market value at any point during the reporting period is higher than the carrying value the basis of the digital assets will not be adjusted to account for this increase. Gains on digital assets, if any, will be recognized upon sale or disposal of the assets.

Impairment of Long-Lived Assets

Long-lived assets, except for goodwill, consist of property and equipment and finite-lived acquired intangible assets, such as internal-use software, developed software, gaming licenses, trademarks, tradenames and customer relationships. Long-lived assets, except for goodwill, are tested for recoverability whenever events or changes in business circumstances indicate that the carrying amount of the asset may not be fully recoverable. Impairment expense is recognized to the extent an asset’s expected undiscounted future cash flows are less than the asset’s carrying amount. The Company determined that long-lived assets were not significantly impaired 2021, 2020 or 2019.

Goodwill

The Company’s business is classified into three reporting units: B2C, Media and B2B. In testing goodwill for impairment, the Company has the option to begin with a qualitative assessment, commonly referred to as “Step 0,” to determine whether it is more likely than not that the fair value of a reporting unit containing goodwill is less than its carrying value. This qualitative assessment may include, but is not limited to, reviewing factors such as macroeconomic conditions, industry and market considerations, cost factors, entity-specific financial performance and other events, such as changes in the Company’s management, strategy and primary user base. If the Company determines that it is more likely than not that the fair value of a reporting unit is less than its carrying value, the Company performs a quantitative goodwill impairment analysis by comparing the carrying amount to the fair value of the reporting unit. If the carrying amount exceeds the fair value, goodwill will be written down to the fair value and recorded as impairment expense in the consolidated statements of operations. The Company performs its impairment testing annually and when circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. The Company performed its annual impairment assessment of goodwill as of October 1, 2021 and concluded that goodwill was not impaired.

Equity Method Investment

The Company has a 49.9% membership interest in DKFS, LLC, also known as DRIVE by DraftKings as of December 31, 2021. In addition, the Company has committed to invest up to $17.5 million into DBDK Venture Fund I, LP, a Delaware limited partnership and a subsidiary of DKFS LLC. As of December 31, 2021, the Company had invested a total of $3.5 million of the total commitment, which represents ownership of approximately 28.6% in the fund.

The Company uses the equity method to account for investments in which the Company has the ability to exercise significant influence over the operating and financial policies of the investee, but does not exercise control and is not the primary beneficiary. The Company’s judgment regarding its level of influence over the equity method investee includes considering key factors, such as ownership interest, representation on the board of directors, and participation in policy-making decisions. The Company’s carrying value in the equity method investee is reflected in the caption “Equity method investment” on the consolidated balance sheets. Changes in value of DKFS, LLC and DBDK Venture Fund I, LP are recorded in “(Gain) Loss from equity method investment” on the consolidated statements of operations.

Under the equity method, the Company’s investment is initially measured at cost and subsequently increased or decreased to recognize the Company’s share of income and losses of the investee, capital contributions and distributions and impairment losses. The Company performs a qualitative assessment annually and recognizes an impairment if there are sufficient indicators that the fair value of the investment is less than carrying value.

Leases

The Company leases certain office spaces, equipment and vehicles and recognizes lease expense on a straight-line basis over the initial term of the lease unless external economic factors exist such that renewals are reasonably certain. In those instances, the renewal period would be included in the lease term to determine the period in which to recognize the lease expense.

Leases for periods through December 31, 2019 were reported under ASC 840, Leases (Topic 840) (“ASC 840”), including the disclosure requirements. The Company recognizes rent expense on operating leases on a straight-line basis over the non-cancellable lease term. Operating leases with landlord-funded leasehold improvements are considered tenant allowances and are amortized as a reduction of rent expense over the non-cancellable lease term. Deferred rent liability, which is calculated as the difference between contractual lease payments and the rent expense, is recorded in accounts payable and accrued expenses and other long-term liabilities in the consolidated balance sheets.

The Company adopted Accounting Standards Update (“ASU”) 2016-2, Leases (Topic 842) (“ASU 2016-2”), using the alternative transition method provided in ASU 2018-11, Leases (Topic 842) (“ASU 2018-11”): Targeted Improvements as of January 1, 2020 at December 31, 2020. Using the alternative transition method, the Company applied the transition requirements at the effective date of ASU 2016-2.

The Company elected the package of practical expedients permitted under the transition guidance within the new lease standard. In addition, the Company has elected to apply the practical expedient to combine lease and related non-lease components, for all classes of underlying assets, and account for the combined contract as a lease component, as well as the election was made to apply the short-term lease recognition exemption.

Warrant Liabilities

As part of DEAC’s initial public offering on May 14, 2019, DEAC issued 13.3 million warrants where each whole warrant entitles the holder to purchase one share of Class A common stock at an exercise price of $11.50 per share (the “Public Warrants”). Simultaneously with the closing of the IPO, DEAC completed the private sale of 6.3 million warrants to DEAC’s sponsor at a purchase price of $1.50 per warrant (the “Private Warrants”). Each Private Warrant allows the sponsor to purchase one share of Class A common stock at $11.50 per share. The Private Warrants and the shares of common stock issuable upon the exercise of the Private Warrants are not transferable, assignable or salable until after the completion of a Business Combination, subject to certain limited exceptions. Additionally, the Private Warrants are exercisable for cash or on a cashless basis, at the holder’s option, and are non-redeemable so long as they are held by the initial purchasers or their permitted transferees. If the Private Warrants are held by someone other than the initial purchasers or their permitted transferees, the Private Warrants will be redeemable by the Company and exercisable by such holders on the same basis as the Public Warrant.

The Company classified the Warrants pursuant to ASC 815 as derivative liabilities with subsequent changes in their respective fair values recognized in the consolidated statement of operations at each reporting date.

Liabilities to Users

The Company records liabilities for user account balances. User account balances consist of user deposits, most promotional awards and user winnings less user withdrawals, tax withholdings and user losses. Cash reserved for users and receivables reserved for users equal or exceed the Company’s liabilities to users at all times.

Loss Contingencies

The Company’s loss contingencies, which are included within other long-term liabilities in the consolidated balance sheets, are uncertain by nature and their estimation requires significant management judgment as to the probability of loss and estimation of the amount of such loss. These contingencies include, but may not be limited to, indirect taxes, regulatory investigations and proceedings and management’s evaluation of complex laws and regulations, and the extent to which they may apply to our business and industry.

The Company regularly reviews its contingencies to determine whether the likelihood of loss is probable and to assess whether a reasonable estimate of the loss can be made. Determination of whether a loss estimate can be made is a complex undertaking that considers the judgement of management, third-party research, the prospect of negotiation and interpretations

by regulators and courts, among other information. When a loss is determined to be probable, and the amount of the loss can be reasonably estimated, an estimated contingent liability is recorded.

Revenue Recognition

Effective January 1, 2019, the Company adopted ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”), using the modified retrospective method for all contracts not completed as of the date of adoption. ASC 606 requires companies to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, the standard requires more detailed disclosures to enable readers of the financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The cumulative effect of the adoption was immaterial to the consolidated financial statements. See Note 10 – Revenue Recognition for further details.

The Company determines revenue recognition through the following steps:

•Identify the contract, or contracts, with the customer;

•Identify the performance obligations in the contract;

•Determine the transaction price;

•Allocate the transaction price to performance obligations in the contract; and

•Recognize revenue when, or as, the Company satisfies performance obligations by transferring the promised good or services.

The Company is currently engaged in the business of digital sports entertainment and gaming and provides its users with online gaming opportunities. The Company also provides online sportsbook and casino operators with technical infrastructure as well as related services with respect to its direct customers and distributors. The following is a description of the Company’s revenue streams:

Online Gaming

DFS is a peer-to-peer product in which users compete against one another for prizes. Users pay an entry fee to join a DFS contest and compete for prizes, which are distributed to the highest performing competitors in each contest as defined by each contest’s prize table. DFS revenue is generated from contest entry fees from users, net of prizes and customer incentives awarded to users.

Sportsbook or sports betting involves a user wagering money on an outcome or series of outcomes occurring. When a user’s wager wins, the Company pays the user a pre-determined amount known as fixed odds. Sportsbook revenue is generated by setting odds such that there is a built-in theoretical margin in each sports wagering opportunity offered to users. Sportsbook revenue is generated from users’ wagers net of payouts made on users’ winning wagers and incentives awarded to users.

iGaming, or online casino, typically includes digital versions of wagering games available in land-based casinos, such as blackjack, roulette and slot machines. For these offerings, the Company functions similarly to land-based casinos, generating revenue through hold, as users play against the house. iGaming revenue is generated from user wagers net of payouts made on users’ winning wagers and incentives awarded to users.

DFS, Sportsbook and iGaming, each as described above, create a single performance obligation for the Company to operate contests or games and award prizes or payouts to users based on results. Revenue is recognized at the conclusion of each contest, wager, or wagering game hand. Incentives can be used across online gaming products. Additionally, certain incentives given to customers create material rights and represent separate performance obligations. User incentives in certain cases create liabilities when awarded to players and in those cases are generally recognized as revenue upon redemption.

Gaming software

The Company contracts with business customers to provide sports and casino betting software solutions. Gaming software revenue is recognized when control of the solutions is transferred to the customer in an amount that reflects the consideration to which the Company expects to be entitled to in exchange for providing control of the sports betting and casino software.

The Company’s direct customer contract revenue is generally calculated as a percentage of the wagering revenue generated by the business customer using our software and is recognized in the periods in which those wagering and related activities conclude. In contrast, the Company provides distributors with the right to resell the Company’s software-as-a-service offering to their clients, using their own infrastructure. In reseller arrangements, revenue is generally calculated via a fixed monthly fee and an additional monthly fee which varies based on the number of gaming operators to whom each reseller sub-licenses the Company’s software. Our direct customer arrangements do not provide the customers with the right to take possession of our software, but only the right to purchase access to the Company’s sports and casino wagering software for a defined contractual period. In reseller arrangements, as opposed to direct customer arrangements, the resellers purchase a software license which enables them to install, host, and serve their operators’ base using the Company’s software. As of December 31, 2021, we no longer had agreements with any resellers.

Non-fungible token ("NFT") content

We launched Draftkings Marketplace (“Marketplace”) during the third quarter of 2021. Marketplace is a digital collectibles (non-fungible token or “NFT”) ecosystem designed for mainstream accessibility that offers curated initial NFT drops (“Primary Sales”). In addition to the Primary Sales, owners of NFTs on Marketplace can list their NFTs for sale to other Marketplace customers (“Secondary Sales”). The revenue we earn is based on a specific percentage of the gross value of each Primary Sale or Secondary Sale. The revenue is recognized for each sale when the NFT transfers to the end user. In addition, the Company signed a strategic agreement (the “Strategic Agreement”) with a privately-held content development company (the “Entity”). Certain officers of the Company are members of the Entity's board of advisors and certain officers and directors of the Company are shareholders of the Entity. In connection with the Strategic Agreement, the Company has exclusive distribution rights for the Entity’s sports-related NFT content.

Transaction Price Considerations

Variability in the transaction price arises primarily due to market-based pricing, cash discounts, revenue sharing and usage-based fees. DraftKings offers loyalty programs, free plays, deposit bonuses, discounts, rebates and other rewards and incentives to its customers. Revenue for DFS, Sportsbook and iGaming is collected prior to the contest or event and is fixed once the outcome is known. Prizes paid and payouts made to users are recognized when awarded to the player.

Contracts with customers may include multiple performance obligations. For such arrangements, the transaction price is allocated to performance obligations on a relative standalone selling price basis. Standalone selling prices are estimated based on observable data of the Company’s sales of such products and services to similar customers and in similar circumstances on a standalone basis. For Online Gaming, which includes DFS, Sportsbook and iGaming, the Company allocates a portion of the transaction price to certain customer incentives that create material future customer rights. In addition, in the event of a multi-stage contest, the Company will allocate transaction price ratably from contest start to the contest’s final stage.

Certain costs to obtain or fulfill contracts

Under ASC 606, certain costs to obtain or fulfill a contract with a customer must be capitalized, to the extent recoverable from the associated contract margin, and subsequently amortized as the products or services are delivered to the customer. These costs are capitalized as contract acquisition costs and are amortized over the period of benefit to the customer. For the Company, the period of benefit is typically less than or equal to 1 year. As such, the Company applied the practical expedient and contract acquisition costs are expensed immediately. Customer contract costs which do not qualify for capitalization as contract fulfillment costs are expensed as incurred.

Contract balances

Contract assets and liabilities represent the differences in the timing of revenue recognition from the receipt of cash from the Company’s customers and billings to those customers. Contract assets reflect revenue recognized and performance obligations satisfied in advance of customer billing.

Deferred revenue relates to payments received in advance of the satisfaction of performance under the contract. The Company maintains various programs to incentivize user behaviors, which allows users to earn awards. Incentive awards generally represent a material right to the user, and awards may be redeemed for future services. Incentive awards earned by users, but not yet redeemed, are generally recognized as a reduction to revenue and included within liabilities to users on the consolidated balance sheets. When a user redeems most types of awards, the Company recognizes revenue on the consolidated statements of operations.

Certain player awards are not subject to expiration or have not been expired historically, on such awards the Company recognizes breakage (for amounts not expected to be redeemed) to the extent there is no requirement for remitting such balances to regulatory agencies.

Cost of Revenue

Cost of revenue consists primarily of variable costs. These include mainly (i) payment processing fees and chargebacks, (ii) product taxes, (iii) platform costs directly associated with revenue-generating activities, including those costs that were originally capitalized for internally developed software, (iv) revenue share / market access arrangements, and (v) feed / provider services. The Company incurs payment processing fees on user deposits, withdrawals and deposit reversals from payment processors (“chargebacks”). Chargebacks have not been material to date. Cost of revenue also includes expenses related to the distribution of our services, amortization of intangible assets and compensation of revenue associated personnel.

Sales and Marketing

Sales and marketing expenses consist primarily of expenses associated with advertising, conferences, costs related to free to play contests, rent and facilities maintenance, and the compensation of sales and marketing personnel, including stock-based compensation expenses. Advertising costs are expensed as incurred and are included in sales and marketing expense in the consolidated statements of operations. Advertising costs include those costs associated with communicating with potential customers and generally use some form of media, such as internet, radio, print, television, or billboards. Advertising costs also include costs associated with strategic league and team partnerships. During the years ended December 31, 2021, 2020 and 2019, advertising costs in accordance with U.S. GAAP were $831.1 million, $430.4 million and $152.2 million, respectively.

Product and Technology

Product and technology expenses consist primarily of research and development costs that are not capitalized and other costs not associated directly with revenue generating activities. Research and development costs primarily represent employee expenses (including stock-based compensation) for engineering product, design, analytical research and project management incurred for non-revenue generating activities. Other costs include related overhead for rent, facilities maintenance, third party software licenses and consulting services.

General and Administrative

General and administrative expenses consist of costs not related to sales and marketing, product and technology or revenue. General and administrative costs include professional services (including legal, regulatory, audit, accounting, lobbying and services related to acquisitions), rent and facilities maintenance, contingencies, insurance, allowance for credit losses, depreciation of leasehold improvements and furniture and fixtures and costs related to the compensation of executive and non-executive personnel, including stock-based compensation.

Benefit Plans

The Company maintains a defined contribution plan, which covers a majority of employees. The plan allows for employee salary deferrals, which are matched at our discretion. The Company contributions to these plans were $6.7 million in 2021. These costs were not significant to the Company's consolidated financial statements in 2020 or 2019.

Stock-based Compensation

The Company measures compensation expense for stock options and other stock awards in accordance with ASC 718, Compensation—Stock Compensation. Stock-based compensation is measured at fair value on grant date and recognized as compensation expense over the requisite service period. Generally, the Company issues stock options and other stock awards to employees with service-based and/or performance-based vesting conditions. For awards with only service-based vesting conditions, the Company records compensation cost for these awards using the straight-line method less an assumed forfeiture rate. For awards with performance-based vesting conditions, the Company recognizes compensation cost on a tranche-by-tranche basis (the accelerated attribution method) less an assumed forfeiture rate.

Under the provisions of ASC 505-50, Equity-Based Payments to Non-Employees, the Company measures stock-based awards granted to non-employees at the earlier of: (i) the performance commitment date, or (ii) the date the services required under the arrangement have been completed. Compensation expense is recognized over the period during which services are

rendered by non-employees until service is completed. At the end of each financial reporting period, for share based payments issued in lieu of cash prior to completion of the service, the fair value of these awards is remeasured using the then-current fair value of the Company’s common stock.

Income Taxes

The Company accounts for income taxes using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the consolidated financial statements or in the Company’s tax returns. Deferred tax assets and liabilities are determined on the basis of the differences between U.S. GAAP treatment and tax treatment of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Changes in deferred tax assets and liabilities are recorded in the provision for income taxes. The Company assesses the likelihood that its deferred tax assets will be recovered from future taxable income and, to the extent it believes, based upon the weight of available evidence, that it is more likely than not that all or a portion of the deferred tax assets will not be realized, a valuation allowance is established through a charge to income tax expense. Potential for recovery of deferred tax assets is evaluated by considering taxable income in carryback years, existing taxable temporary differences, prudent and feasible tax planning strategies and estimated future taxable profits.

The Company accounts for uncertainty in income taxes recognized in the consolidated financial statements by applying a two-step process to determine the amount of tax benefit to be recognized. First, the tax position must be evaluated to determine the likelihood that it will be sustained upon external examination by the taxing authorities. If the tax position is deemed more-likely-than-not to be sustained, the tax position is then assessed to determine the amount of benefit to recognize in the consolidated financial statements. The amount of the benefit that may be recognized is the largest amount that has a greater than 50% likelihood of being realized upon ultimate settlement. The provision for income taxes includes the effects of any resulting tax reserves, or unrecognized tax benefits, that are considered appropriate, as well as the related net interest and penalties.

Earnings (loss) per share

Basic earnings (loss) per share is calculated using the two-class method. Under the two-class method, basic earnings (loss) is computed by dividing net income (loss) available to common stockholders by the weighted-average number of common shares outstanding during the period excluding the effects of any potentially dilutive securities. The weighted-average number of common shares outstanding during the period includes Class A common stock but is exclusive of Class B common stock as these shares have no economic or participating rights. Diluted earnings (loss) per share is computed similar to basic earnings (loss) per share, except that the denominator is increased to include the number of additional common shares that would have been outstanding if potential common shares had been issued if such additional common shares were dilutive. Since the Company had net losses for all the periods presented, basic and diluted earnings (loss) per share are the same, and additional potential common shares have been excluded, as their effect would be anti-dilutive.

Recently Adopted Accounting Pronouncements

In August 2020, the Financial Accounting Standards Board (“FASB”) issued ASU 2020-06, Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40) (“ASU 2020-06”) to simplify accounting for certain financial instruments. ASU 2020-06 eliminates the current models that require separation of beneficial conversion and cash conversion features from convertible instruments and simplifies the derivative scope exception guidance pertaining to equity classification of contracts in an entity’s own equity. The new standard also introduces additional disclosures for convertible debt and freestanding instruments that are indexed to and settled in an entity’s own equity. ASU 2020-06 amends the diluted earnings per share guidance, including the requirement to use the if-converted method for all convertible instruments. ASU 2020-06 is effective January 1, 2022 and should be applied on a full or modified retrospective basis, with early adoption permitted beginning on January 1, 2021. The Company elected to early adopt the new standard as of January 1, 2021 using the modified retrospective approach. In the first quarter of 2021, the Company issued convertible senior notes, whereby the entire proceeds from issuance were recognized as a liability, net of any lender fees and debt financing costs, on our condensed consolidated balance sheet. Please refer to Note 7 included herein for additional information.

In December 2019, the FASB issued ASU 2019-12, Income Taxes—Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”). ASU 2019-12 simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify U.S. GAAP for other areas of Topic 740 by clarifying and amending existing guidance. ASU 2019-12 is effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The Company adopted this

standard as of January 1, 2021. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements and related disclosures.

Recently Issued Accounting Pronouncements Not Yet Adopted

In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires an acquirer in a business combination to recognize and measure contract assets and contract liabilities in accordance with Accounting Standards Codification Topic 606. ASU 2021-08 is effective for fiscal years beginning after December 15, 2022 and early adoption is permitted. While the Company is continuing to assess the timing of adoption and the potential impacts of ASU 2021-08, it does not expect ASU 2021-08 to have a material effect, if any, on its consolidated financial statements.

Business Combinations

12 Months Ended

Dec. 31, 2021

Business Combination and Asset Acquisition [Abstract]

Business Combinations

Vegas Sports Information Network, Inc. (“VSiN”) Acquisition

On March 26, 2021, the Company acquired 100% of the equity of Vegas Sports Information Network, Inc. (“VSiN”). The following summarizes the consideration transferred at closing for the VSiN acquisition:


Cash consideration	$	40,599
Share consideration (1)	29,399
Total consideration	$	69,998

(1)Represents the issuance of 0.5 million shares of the Company’s Class A common stock at a fair value of $63.60 per share to the former stockholders of VSiN.

The acquired assets and assumed liabilities of VSiN were recorded at their estimated fair values. The purchase price allocation for the VSiN acquisition was finalized as of December 31, 2021 and reflects appropriate adjustments from the preliminary amounts previously reported. Goodwill recognized is not deductible for tax purposes.

The purchase price of the VSiN acquisition was allocated as follows:


Operating lease right-of-use assets	$	6,120
Intangible assets	21,758
Other assets	4,516
Liabilities	(9,611)
Goodwill	47,215
Total	$	69,998

Goodwill represents the excess of the gross considerations transferred over the fair value of the underlying net assets acquired and liabilities assumed. Goodwill associated with the VSiN acquisition is assigned as of the acquisition date to the Company’s Media reporting unit.

The intangible assets acquired as part of the VSiN acquisition were as follows:


	Fair Value		Weighted-Average Useful Life (in years)
Developed technology - software	$	558	3.0
Customer relationships	1,200		3.0
Trademarks and trade names	20,000		5.0
Total	$	21,758

As VSiN’s financial results are not material to the Company’s condensed consolidated financial statements, the Company has elected to not include pro forma results.

Blue Ribbon Software Ltd. (“Blue Ribbon”) Acquisition

On April 1, 2021, the Company acquired 100% of the equity of Blue Ribbon for $17.8 million of cash and approximately $3.8 million of the Company’s Class A common stock (the “Blue Ribbon Acquisition”). The acquired assets and assumed liabilities of Blue Ribbon were recorded at their estimated fair values. The purchase price allocation for the Blue Ribbon acquisition was finalized as of December 31, 2021.

SBTech Acquisition

As discussed in Note 1, on April 23, 2020 DEAC consummated the transactions contemplated by the Business Combination Agreement, dated December 22, 2019 as amended on April 7, 2020 and, in connection therewith, (i) DEAC merged with and into the Company, whereby the Company survived the merger (the “DK Merger”) and became the successor issuer to DEAC by operation of Rule 12g-3(a) promulgated under the Exchange Act, (ii) the Company changed its name to “DraftKings Inc.,” (iii) the Company acquired Old DK by way of a merger and (iv) the Company acquired all of the issued and outstanding share capital of SBTech (the “SBTech Acquisition”). Upon consummation of the foregoing transactions, Old DK and SBTech became wholly owned subsidiaries of the Company. Under ASC 805, Old DK was deemed the accounting acquirer based on the following predominant factors: its former owners have the largest portion of voting rights in the Company, the Board and Management have more individuals coming from Old DK than either DEAC or SBTech, Old DK was the largest entity by revenue and by assets at the time of the Business Combination, and the headquarters of the Company is Old DK’s headquarters which is located in Boston, Massachusetts.

The DK Merger was accounted for as a reverse recapitalization, in accordance with U.S. GAAP. Under this method of accounting, DEAC was treated as the “acquired” company for financial reporting purposes. Accordingly, for accounting purposes, the Reverse Recapitalization was treated as the equivalent of Old DK issuing stock for the net assets of DEAC, accompanied by a recapitalization. The net assets of DEAC are stated at historical cost with no goodwill or other intangible assets recorded. The consolidated assets, liabilities and results of operations prior to the Reverse Recapitalization are those of Old DK. Reported shares and earnings per share available to holders of the Company’s common stock, prior to the Business Combination, have been retroactively restated as shares reflecting the exchange ratio established in the Business Combination. Further, Old DK was determined to be the accounting acquirer in the SBTech Acquisition. As such, the SBTech Acquisition was treated as a business combination under ASC 805, and was accounted for using the acquisition method of accounting. DraftKings recorded the fair value of assets acquired and liabilities assumed from SBTech. The business combination agreement contains provisions that indemnifies DraftKings for various losses.

Operating results for SBTech are included in the consolidated statements of operations as of December 31, 2020 from the day of the acquisition.

The Company acquired 100% of the equity of SBTech pursuant to the Business Combination Agreement by issuing 45.0 million shares, options, and earnout shares of Class A common stock of the Company at a weighted average fair value of $17.53 to the former stockholders and option holders of SBTech. The following summarizes the consideration transferred at Closing for the SBTech Acquisition (in thousands):


Cash consideration (1)	$	184,688
Share consideration (2)	789,064
Other cash consideration (3)	3,615
Total SBTech consideration	$	977,367

(1)Includes the cash consideration, adjusted for the Net Debt Amount, the Working Capital Adjustment, and the Aggregate Strike Price Amount, as stipulated by the Business Combination Agreement, resulting in cash consideration of $184.7 million.

(2)Includes $776.5 million for the share consideration for SBTech equity of 40.7 million shares and SBTech employees’ vested options of 3.6 million options, and $12.6 million of contingent consideration, which has been paid out, for the 720 thousand earnout shares issued to former stockholders of SBTech as part of the Business Combination, recognized at their Acquisition Date fair value.

(3)Includes transaction costs incurred by SBTech shareholders to be borne by DraftKings, costs related to the SBTech restructuring transaction that were paid by DraftKings, and the tail liability insurance for SBTech’s directors and officers, as specified in the Business Combination Agreement.

The acquired assets and assumed liabilities of SBTech were recorded at their estimated fair values. The purchase price allocation for the Business Combination was finalized as of December 31, 2020.

The following table summarizes the consideration paid for SBTech and the final fair value of the assets acquired and liabilities assumed at the acquisition date on April 23, 2020.


Cash and cash equivalents	$	9,639
Trade receivables	17,815
Other current assets	3,674
Property and equipment	10,677
Intangible assets	484,051
Operating lease right-of-use assets	27,696
Other non-current assets	1,017
Total identifiable assets acquired	554,569
Liabilities assumed:
Accounts payable and accrued expenses	23,613
Current operating lease liabilities	3,583
Long-term income tax liability	63,575
Non-current operating lease liabilities	24,113
Other long-term liabilities	558
Total liabilities assumed	115,442
Net assets acquired (a)	439,127
Purchase consideration (b)	977,367
Goodwill (b) – (a)	$	538,240

Goodwill represents the excess of the gross considerations transferred over the fair value of the underlying net assets acquired and liabilities assumed. Qualitative factors that contribute to the recognition of goodwill include certain intangible assets that are not recognized as separate identifiable intangible assets apart from goodwill. Intangible assets not recognized apart from goodwill consist primarily of benefits from securing buyer-specific synergies that increase revenue and profits and are not otherwise available to a marketplace participant, as well as acquiring a talented workforce and cost savings opportunities. Goodwill associated with the SBTech Acquisition is assigned as of the acquisition date to the Company’s B2C and B2B segments in the amounts of $348.3 million and $189.9 million respectively, which include the Company’s reporting units that are expected to benefit from the synergies of the combination. Goodwill recognized is not deductible for local tax purposes.

Intangible Assets


	Fair Value		Weighted- Average Useful Life (in years)
Developed Technology	$	385,566	8.0
Customer relationships	93,699		5.0
Trademarks and trade names	4,308		3.0
Gaming License	478		2.0	-	3.0
Total	$	484,051

The fair value of the developed technology was determined using the Multi-Period Excess Earnings Method (“MPEEM”), a form of the Income Approach. The MPEEM is a specific application of the Discounted Cash Flow Method. The principle behind the MPEEM is that the value of an intangible asset is equal to the present value of the incremental after-tax cash flows attributable only to the subject intangible asset after deducting contributory asset charges (“CAC”). The principle behind a CAC is that an intangible asset ‘rents’ or ‘leases’ from a hypothetical third party all the assets it requires to produce the cash flows resulting from its development, that each project rents only those assets it needs (including elements of goodwill) and not the ones that it does not need, and that each project pays the owner of the assets a fair return on (and of, when appropriate) the value of the rented assets. The fair value of the customer relationships was determined by using the With and Without Method, a form of the Income Approach. In this method, the present value of the after-tax cash flows of the business assuming that the intangible asset is in place is compared to the present value of the after-tax cash flows of the business assuming the absence of the intangible asset. This method isolates the impact of the intangible asset and provides the basis for an estimation of value. The fair value of the trademark and tradename was determined by using the Relief-from-Royalty Method, a form of the Income Approach. The basic tenet of the Relief-from-Royalty Method is that without ownership of the subject intangible asset, the user of that intangible asset would have to make a stream of payments to the owner of the asset in return for the rights to use that asset. By acquiring the intangible asset, the user avoids these payments.

Transaction Costs

The Company incurred $30.9 million, for the year ended December 31, 2020, in advisory, legal, accounting and management fees in conjunction with the Business Combination, which are included in general and administrative expenses on the consolidated statement of comprehensive loss.

Direct and incremental transaction costs related to the Business Combination and additional equity offerings that would not otherwise have been incurred are treated as a reduction of the cash proceeds and are deducted from the Company’s additional paid-in capital. Accordingly, $63.7 million was incurred related to equity issuance costs for the year ended December 31, 2020.

Unaudited Pro-Forma Information

The financial information in the table below summarizes the combined results of operations of Old DK and SBTech, on a pro forma basis, as though the companies had been combined as of the beginning of the periods presented. The pro forma financial information is presented for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisition had taken place on January 1, 2019 or of results that may occur in the future.

The following pro forma financial information for years ended December 31, 2020 and 2019 combines the historical results for Old DK for the years ended December 31, 2020 and 2019 and the historical results of SBTech, as converted to U.S. GAAP, for the respective periods:


	Year Ended December 31,
	2020 Pro Forma		2019 Pro Forma
Revenue	$	643,502	$	431,834
Net loss	$	(1,232,651)	$	(219,829)

These pro forma results were based on estimates and assumptions, which the Company believes are reasonable. The pro forma results include adjustments primarily related to purchase accounting adjustments. Acquisition costs and other non-recurring charges incurred are included in the earliest period presented.

Acquisition of Golden Nugget Online Gaming, Inc. (“GNOG”)

On August 9, 2021, the Company and GNOG entered into a definitive agreement for the Company to acquire GNOG in an all-stock transaction with an implied equity value of approximately $1.56 billion (the “GNOG Transaction”). As part of the GNOG Transaction, the Company will undergo a holding company reorganization whereby a new holding company (“New DraftKings”) will become the going-forward public company for both DraftKings and GNOG. It is expected that New DraftKings will be renamed DraftKings Inc. at the closing of the GNOG Transaction. Under the terms of the agreement and subject to certain exclusions contained therein, GNOG stockholders would receive a fixed ratio of 0.365 shares of New DraftKings’ Class A common stock for each share of GNOG that they hold on the record date. As part of the GNOG Transaction, New DraftKings will also acquire that portion of LHGN Holdco, LLC, the operating subsidiary of GNOG, that is

not currently owned by GNOG from Landry’s Fertitta, LLC in exchange for shares of New DraftKings’ Class A common stock. The GNOG Transaction was subject to (i) approval by GNOG stockholders, which was obtained through the delivery of a written consent on September 8, 2021 and (ii) approval by DraftKings stockholders, which was obtained through the delivery of a written consent on August 10, 2021, and is subject to the receipt of required regulatory approvals and other customary closing conditions and is anticipated to close in the first quarter of 2022.

Property and Equipment

12 Months Ended

Dec. 31, 2021

Property, Plant and Equipment [Abstract]

Property and Equipment

Property and equipment, net consists of the following:


	December 31, 2021		December 31, 2020
Computer equipment and software	$	48,200	$	25,824
Furniture and fixtures	8,057		7,754
Leasehold improvements	30,166		24,687
Property and Equipment	86,423		58,265
Accumulated depreciation	(40,404)		(17,438)
Property and Equipment, net	$	46,019	$	40,827

During the years ended December 31, 2021, 2020, and 2019 the Company recorded depreciation expense on property and equipment of $13.8 million, $9.3 million, and $4.1 million, respectively.

Intangible Assets and Goodwill

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets and Goodwill

Intangible Assets

As of December 31, 2021, intangible assets, net consists of the following:


	Weighted- Average Remaining Amortization Period	Gross Carrying Amount		Accumulated Amortization		Net
Amortized intangible assets:
Developed technology	6.4	$	422,900	$	(87,089)	$	335,811
Internally developed software	2.6	117,953		(52,607)		65,346
Gaming licenses	7.3	54,442		(13,466)		40,976
Trademarks, tradenames and other	4.5	30,639		(5,952)		24,687
Customer relationships	3.3	99,728		(33,526)		66,202
		725,662		(192,640)		533,022

Indefinite-lived intangible assets:
Digital assets	Indefinite-lived	1,995		—		1,995
Intangible assets, net		$	727,657	$	(192,640)	$	535,017

As of December 31, 2020, intangible assets, net consists of the following:


	Weighted- Average Remaining Amortization Period	Gross Carrying Amount		Accumulated Amortization		Net
Developed technology	7.3	$	439,624	$	(37,704)	$	401,920
Internally developed software	2.3	72,268		(33,179)		39,089
Gaming licenses	3.5	23,685		(6,354)		17,331
Trademarks and tradenames	2.8	6,537		(1,123)		5,414
Customer relationships	4.3	106,836		(14,660)		92,176
Intangible assets, net		$	648,950	$	(93,020)	$	555,930

During the years ended December 31, 2021, 2020, and 2019 the Company recorded amortization expense on intangible assets of $107.3 million, $68.1 million, and $9.5 million, respectively

The table below shows expected amortization expense for the next five years acquired intangible assets, net recorded as of December 31, 2021:


Year ending December 31,	Estimated Amortization
2022	$	115,359
2023	107,128
2024	98,584
2025	69,141
2026	57,148

Goodwill

The changes in the carrying amount of goodwill for the year ended December 31, 2021 by reporting unit are:


	B2C		B2B		Media		Total
Balance as of December 31, 2020	$	353,083	$	216,520	$	—	$	569,603
Goodwill resulting from acquisitions	7,673		8,300		47,215		63,188
Cumulative translation adjustment	—		(17,136)		—		(17,136)
Balance as of December 31, 2021	$	360,756	$	207,684	$	47,215	$	615,655

No impairment of goodwill was recorded in the years ended December 31, 2021, 2020 and 2019.

Accounts Payable and Accrued Expenses

12 Months Ended

Dec. 31, 2021

Accounts Payable and Accrued Liabilities, Current [Abstract]

Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses consist of the following:


	December 31, 2021		December 31, 2020
Accounts payable	$	52,537	$	28,076
Accrued compensation and related expenses	63,803		48,449
Accrued marketing	55,275		51,436
Accrued professional fees	18,400		10,640
Accrued operating taxes	50,813		19,509
Accrued partnership fees	72,736		21,112
Accrued other expenses	74,173		44,411
Total	$	387,737	$	223,633

Current and Long-term Liabilities	12 Months Ended
Current and Long-term Liabilities	Dec. 31, 2021
Current and Long-term Liabilities
Current and Long-term Liabilities	Current and Long-term Liabilities Revolving Line of Credit In October 2016, the Company entered into an amended and restated loan and security agreement with Pacific Western Bank, which was most recently amended in September 2020 (as amended, the “Credit Agreement”). The Credit Agreement provides a revolving line of credit of up to $60.0 million. The Credit Agreement has a maturity date of March 1, 2022. Borrowings under the Credit Agreement bear interest at a variable annual rate equal to the greater of (i) 1.00% above the prime rate then in effect and (ii) 6.50%, and the Credit Agreement requires monthly, interest-only payments. In addition, the Company is required to pay quarterly in arrears a fee equal to 0.25% per annum of the unused portion of the revolving line of credit. As of December 31, 2021 and December 31, 2020, the Credit Agreement provided a revolving line of credit of up to $60.0 million. There was no principal outstanding under the Credit Agreement as of December 31, 2021 and December 31, 2020. Net facility available from the Credit Agreement as of December 31, 2021 and December 31, 2020 totaled $55.8 million, which excludes the letters of credit outlined in Note 16. The Company is also subject to certain affirmative and negative covenants until maturity. In connection with the issuance of the Convertible Notes and the entry into the Capped Call Transactions, the Company obtained a waiver from Pacific Western Bank for any breach of the credit agreement that would have resulted from entering into these financing transactions. The Company also obtained a waiver from Pacific Western Bank for any breach of the credit agreement that would have resulted from exceeding a capital expenditure limitation for 2021 and the amendments to its Annual Report on Form 10-K for the year ended December 31, 2020 and Quarterly Reports on Form 10-Q for the quarters ended March 31, 2021 and June 30, 2021 for the previously identified material weakness that has since been remediated as noted in Item 9A. Controls and Procedures. Convertible Notes and Capped Call In March 2021, the Company issued zero-coupon convertible senior notes in an aggregate principal amount of $1,265.0 million, which includes proceeds from the full exercise of the over-allotment option (collectively, the “Convertible Notes”). The Convertible Notes will mature on March 15, 2028, subject to earlier conversion, redemption or repurchase. In connection with the issuance of the Convertible Notes, the Company incurred $17.0 million of lender fees and $1.7 million of debt financing costs which are being amortized through the maturity date. The Convertible Notes represent senior unsecured obligations of the Company. The Convertible Notes are convertible at an initial conversion rate of 10.543 shares of the Company’s Class A common stock per $1,000 principal amount of Convertible Notes, which is equivalent to an initial conversion price of approximately $94.85 per share of Class A common stock. The conversion rate is subject to adjustment upon the occurrence of certain specified events and includes a make-whole adjustment upon early conversion in connection with a make-whole fundamental change (as defined within the indenture agreement). Prior to September 15, 2027, the Convertible Notes will be convertible only upon satisfaction of certain conditions and during certain periods, and thereafter, at any time until the close of business on the second scheduled trading day immediately preceding the maturity date. The Company will satisfy any conversion election by paying or delivering, as the case may be, cash, shares of Class A common stock or a combination of cash and shares of Class A common stock. During 2021, the conditions allowing holders of the Convertible Notes to convert their Convertible Notes were not met. In connection with the pricing of the Convertible Notes and the exercise of the option to purchase additional notes, the Company entered into a privately negotiated capped call transaction (“Capped Call Transactions”). The Capped Call Transactions have a strike price of $94.85 per share, subject to certain adjustments, which corresponds to the initial conversion price of the Convertible Notes. The Capped Call Transactions have an initial cap price of $135.50 per share, subject to certain adjustments. The Capped Call Transactions are expected generally to reduce potential dilution to the Company's Class A common stock upon any conversion of Convertible Notes. As the transaction qualifies for equity classification, the net cost of $124.0 million incurred in connection with the Capped Call Transactions was recorded as a reduction to additional paid-in capital on the Company's consolidated balance sheet. As of December 31, 2021, the Company's convertible debt balance was $1,248.5 million, net of debt issuance costs of $16.5 million. Although recorded at amortized cost on the Company's consolidated balance sheet, the estimated fair value of the Convertible Notes was $953.8 million as of December 31, 2021 which was calculated using the estimated or actual bids and offers of the Convertible Notes in an over-the-counter market on the last business day of the period. Indirect Taxes Taxation of e-commerce is becoming more prevalent and could negatively affect the Company’s business as it pertains to DFS and its users. The ultimate impact of indirect taxes on the Company’s business is uncertain, as is the period required to resolve this uncertainty. The Company’s estimated contingent liability for indirect taxes represents the Company’s best estimate of tax liability in jurisdictions in which the Company believes taxation is probable. The Company frequently reevaluates its tax positions for appropriateness. Indirect tax statutes and regulations are complex and subject to differences in application and interpretation. Tax authorities may impose indirect taxes on Internet-delivered activities based on statutes and regulations which, in some cases, were established prior to the advent of the Internet and do not apply with certainty to the Company’s business. The Company’s estimated contingent liability for indirect taxes may be materially impacted by future audit results, litigation and settlements, should they occur. The Company’s activities by jurisdiction may vary from period to period, which could result in differences in the applicability of indirect taxes from period to period. As of December 31, 2021, and December 31, 2020, the Company’s estimated contingent liability for indirect taxes was $47.5 million and $45.9 million, respectively. The estimated contingent liability for indirect taxes is recorded within other long-term liabilities on the consolidated balance sheets and general and administrative expenses on the consolidated statements of operations. Warrant Liabilities As part of DEAC’s initial public offering on May 14, 2019, DEAC issued 13.3 million warrants each of which entitles the holder to purchase one share of Class A common stock at an exercise price of $11.50 per share (the “Public Warrants”). Simultaneously with the closing of the IPO, DEAC completed the private sale of 6.3 million warrants to DEAC’s sponsor (the “Private Warrants”). As of December 31, 2021, there were no Public Warrants outstanding. As of December 31, 2021, 1.6 million Private Warrants remained outstanding at a fair value of $26.9 million. Due to fair value changes, the Company recorded a gain on remeasurement of warrant liabilities of $30.1 million and a loss on remeasurement of warrant liabilities of $387.6 million during 2021 and 2020, respectively. During 2021, 0.3 million Private Warrants were exercised, resulting in a reclassification to additional paid-in-capital in the amount of $9.2 million, reflecting the reclassification of the warrant liabilities of $8.5 million and proceeds upon exercise of $0.7 million. During 2020, 17.7 million Private Warrants were exercised, resulting in a reclassification to additional paid-in-capital in the amount of $649.1 million, reflecting the reclassification of the warrant liabilities of $447.1 million and proceeds upon exercise of $202.0 million.

Fair Value Measurements

12 Months Ended

Dec. 31, 2021

Fair Value Disclosures [Abstract]

Fair Value Measurements

Certain assets and liabilities are carried at fair value under U.S. GAAP. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. Financial assets

and liabilities carried at fair value are to be classified and disclosed in one of the following three levels of the fair value hierarchy, of which the first two are considered observable and the last is considered unobservable:

•Level 1 — Quoted prices in active markets for identical assets or liabilities.

•Level 2 — Observable inputs (other than Level 1 quoted prices), such as quoted prices in active markets for similar assets or liabilities, quoted prices in markets that are not active for identical or similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data.

•Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to determining the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies and similar techniques.

The following tables set forth the fair value of the Company’s financial assets and liabilities measured at fair value as of December 31, 2021 and December 31, 2020 based on the three-tier fair value hierarchy:


	December 31, 2021
	Level 1		Level 2		Level 3		Total
Assets
Cash equivalents:
Money market funds (1)	$	550,169	$	—	$	—	$	550,169
Other non-current assets:
Equity securities (2)	27,200		—		—		27,200
Put options in Vivid Seats, Inc. (2)	—		—		3,850		3,850
Total	$	577,369	$	—	$	3,850	$	581,219

Liabilities
Private Warrants (3)	$	—	$	26,911	$	—	$	26,911
Total	$	—	$	26,911	$	—	$	26,911


	December 31, 2020
	Level 1		Level 2		Level 3		Total
Liabilities
Private Warrants (3)	$	—	$	65,444	$	—	$	65,444
Total	$	—	$	65,444	$	—	$	65,444

(1)The Company measures its money market funds at fair value. The Company classifies its money market funds as Level 1 because the Company values these assets using quoted market prices.

(2)The Company measures its marketable equity securities at fair value. The Company classifies its marketable equity securities as Level 1 because the Company values these assets using quoted market prices. As of December 31, 2021, these marketable equity securities include the Company's investment of 2.5 million shares of Class A Common Stock in Vivid Seats Inc. During the fourth quarter of 2021, the Company also obtained the option to sell its 2.5 million shares of Class A Common Stock in Vivid Seats, Inc., at a price of $9.77 per share to a third party. The change in the fair value of these put options between the acquisition date in the fourth quarter of 2021 and December 31, 2021 was not significant. During 2021, the Company recorded $6.1 million of unrealized gains between the equity securities and the related options. The Company measures its put options in Vivid Seats, Inc. at fair value using a Black-Scholes model and accordingly classifies these put options as Level 3. The following table provides qualitative information regarding the assumptions used to fair value the instrument:


	December 31, 2021
Class A common stock price	$	10.88
Repurchase price	$	9.77
Term to repurchase date (in years)	0.71 years
Volatility	60.0		%
Risk-free rate	0.3		%
Dividend yield	0.0		%

(3)The Company measures its Private Warrants at fair value using a binomial lattice model with the significant assumptions being observable inputs and accordingly classifies these liabilities as Level 2.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Stockholders' Equity (Deficit)	12 Months Ended
Stockholders' Equity (Deficit)	Dec. 31, 2021
Equity [Abstract]
Stockholders' Equity (Deficit)	Stockholders’ Equity (Deficit) The consolidated statements of changes in equity reflect the Reverse Recapitalization and SBTech Acquisition as defined in Note 1 as of April 23, 2020. As Old DK was deemed the accounting acquirer in the Reverse Recapitalization with DEAC, all periods prior to the consummation date reflect the balances and activity of Old DK. The consolidated balances as of December 31, 2019 from the audited consolidated financial statements of Old DK as of that date, share activity (convertible redeemable preferred stock and common stock) and per share amounts in these consolidated statements of equity were retroactively adjusted, where applicable, using the recapitalization exchange ratio of 0.353628. All convertible redeemable preferred stock classified as mezzanine was retroactively adjusted, converted into Class A common stock, and reclassified to permanent as a result of the Reverse Recapitalization. Redeemable convertible preferred Series E-1 stock converted into shares of Old DK common stock at a share conversion factor of 1.40 whereas Series F converted into shares of Old DK common stock at a share conversion factor of 1 and both were immediately exchanged for Class A common stock of the Company using the recapitalization exchange ratio of 0.353628 as a result of the Reverse Recapitalization. Immediately prior to the Business Combination, Old DK issued 393.0 million shares of Class B common stock to Jason Robins (the Chief Executive Officer of Old DK and of the Company) which converted into 393.0 million shares of Class B common stock of the Company as a result of the Business Combination and is recorded as stock-based compensation for the year ended December 31, 2020. Such shares carry 10 votes per share and allow Jason Robins to have as of the closing of the Business Combination, approximately 90% of the voting power of the capital stock of DraftKings on a fully-diluted basis. As these shares have no economic rights and are non-participating, they are allocated no earnings or losses when calculating earnings per share pursuant to the two-class method. Upon the consummation of the Business Combination, the mandatory conversion feature was triggered for the Company’s convertible notes then outstanding. As a result, all outstanding principal of $109.2 million and unpaid accrued interest of $3.4 million was collectively converted to equity securities at $10 per share. The noteholders received 11.3 million shares of Class A common stock in New DraftKings as result of the conversion. As part of the Business Combination $542.3 million of Class A common stock and Additional Paid in Capital was recorded, net of transaction costs of $10.6 million, in relation to DEAC shares being recapitalized. The Company then used $188.3 million as cash consideration in its acquisition of SBTech and $7.2 million for the buyout of unaccredited investors. Net cash proceeds to the Company were $484.0 million. In June 2020, we issued 16.0 million new shares of our Class A common stock in a public offering for net proceeds (net of underwriting fees) of $620.8 million. In October 2020, the Company issued 20.8 million shares of its Class A common stock in a public offering for net proceeds (net of underwriting fees) of $1,059.3 million. As of December 31, 2021, the Company had 300.0 million shares authorized of preferred stock, $0.0001 par value, of which none were issued and outstanding as of December 31, 2021 or December 31, 2020.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

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+ Details

Revenue Recognition

12 Months Ended

Dec. 31, 2021

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Deferred Revenue

The Company included deferred revenue within accounts payable and accrued expenses and liabilities to users in the consolidated balance sheets. The deferred revenue balances were as follows:


	Year Ended December 31,
	2021		2020
Deferred revenue, beginning of the period	$	30,627	$	20,760
Deferred revenue, end of the period	$	91,554	$	30,627
Revenue recognized in the period from amounts included in deferred revenue at the beginning of the period	$	28,319	$	11,221

Deferred revenue primarily represents contract liabilities related to the Company’s obligation to transfer future value in relation to in period transactions in which the Company has received consideration. Such obligations are recognized as liabilities when awarded to users and are recognized as revenue when those liabilities are later resolved.

Revenue Disaggregation

Disaggregation of revenue for years ended December 31, 2021, 2020 and 2019 are as follows:


	Year Ended December 31,
	2021		2020		2019
Online gaming	$	1,145,539	$	517,632	$	308,177
Gaming software	97,415		75,629		—
Other	53,071		21,271		15,233
Total Revenue	$	1,296,025	$	614,532	$	323,410

Online gaming includes DFS, iGaming and Sportsbook which have certain similar attributes and pattern of recognition.

The following table presents the Company’s revenue by geographic region for the periods indicated:


	Year ended December 31,
	2021		2020		2019
United States	$	1,198,748	$	544,463	$	318,144
International	97,277		70,069		5,266
Total Revenue	$	1,296,025	$	614,532	$	323,410

SBTech has offered its services through a reseller model in Asia. The agreement with the reseller was terminated as of April 1, 2021, with a transition period that has already ended. As of December 31, 2021, we no longer had agreements with any resellers.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

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+ Details

Stock-Based Compensation

12 Months Ended

Dec. 31, 2021

Share-based Payment Arrangement [Abstract]

Stock-Based Compensation

In 2012, the Board of Directors adopted the 2012 Stock Option and Restricted Stock Incentive Plan (the “2012 Plan”), which provides for the granting of incentive and nonqualified stock options, shares of restricted stock and other equity interests or awards in the Company. The Company only issued time-based vesting awards under the 2012 Plan.

In 2017, the Board approved the 2017 Equity Incentive Plan (the “2017 Plan”). No new awards have been issued under the 2012 Plan following the approval of the 2017 Plan. The 2017 Plan provides for the granting of incentive and nonqualified stock options, shares of restricted stock and other equity interests or awards in the Company. The Company issued time-based and

performance-based vesting awards under the 2017 Plan. As of December 31, 2021, the total combined number of shares available for grant under the 2012 Plan and 2017 Plan was 10.4 million.

In 2020, the Board approved the 2020 Incentive Award Plan (the “2020 Plan”, together with the 2012 Plan and the 2017 Plan, the “Plans”). The 2020 Plan provides for the granting of incentive and nonqualified stock options, restricted stock units (“RSUs”) and other equity interests or awards in the Company. As of December 31, 2021, the total number of shares available for grant under the 2020 Plan was 44.5 million shares. The Company issued time-based and performance-based vesting awards under the 2020 Plan. As of December 31, 2021, a share reserve established that the aggregate number of shares may not exceed 900.0 million shares under the Plans.

The Company has historically issued three types of stock-based compensation: time-based awards, long term incentive plan (“LTIP”) awards and performance-based stock compensation plan (“PSP”) awards. LTIP awards are performance-based equity awards that are used to establish longer-term performance objectives and incentivize management to meet those objectives. PSP awards are short-term performance-based equity awards which establish performance objectives related to one or two particular fiscal years. All stock-based compensation awards expire seven to ten years after the grant date.

Time-based awards generally vest over a four-year period in annual and/or quarterly installments and expire no later than ten years from the date of grant. Time-based options are valued using the Black-Scholes option-pricing model with the assumptions noted in the table below. The fair value of time-based RSUs is estimated on the grant date using the underlying share price.

LTIP awards that were granted as RSUs in 2021 vest based on long-term revenue targets and used the underlying share price on the grant date to estimate their fair value. LTIP awards that were granted as RSUs in 2020 vested based on reaching specific share price targets and used a Monte Carlo Simulation with the assumptions noted in the table below to estimate their fair value. Prior to 2020, LTIP awards were granted as stock options and were valued using the Black-Scholes option-pricing model with the assumptions noted in the table below.

PSP awards granted in 2021 and 2020 vest based on meeting both revenue and EBITDA targets. As these awards are performance-based RSUs, the fair value is estimated on the grant date using the underlying share price. Prior to 2020, PSP awards were granted as stock options and were valued using the Black-Scholes option-pricing model with the assumptions noted in the table below.

The fair value of each option is estimated on the grant date using the Black-Scholes option-pricing model and the assumptions noted in the table below. The fair value is recognized over the requisite service period of the awards, which is generally the vesting period. For awards with only service-based vesting conditions, the Company recognizes compensation cost using the straight-line method. Expected volatility is based on average volatility for a representative sample of comparable public companies. Stock options are generally granted with an exercise price equal to the fair value of the common stock at the grant date with a 10-year contractual term.

The expected term represents the period of time that the options are expected to be outstanding. The expected term is estimated using the average of the vesting term and the original contractual term of the option. The risk-free interest rate is estimated using the rate of return on U.S. treasury notes with a life that approximates the expected life of the option. The fair value of the stock options issued was measured using the following assumptions:


	Year ended December 31,
	2021		2020		2019
Risk free interest rate	1.1	%	0.4	%	2.0	%
Expected term (in years)	5.8		6.1		6.0
Expected volatility	43.0	%	42.5	%	41.5	%
Expected dividend yield	0.0	%	0.0	%	0.0	%

For grants with market-based conditions, the fair value of each award was determined using a Monte Carlo Simulation. No awards with market-based conditions were granted in 2021. The model uses multiple input variables that determined the probability of satisfying the market condition requirements as follows:


	Year ended December 31, 2020
Risk free interest rate	1.7	%
Expected volatility	38.9	%
Expected dividend yield	0.0	%

The following table shows stock option activity for the year ended December 31, 2021, 2020, and 2019:


	Time-based		PSP		LTIP		Total	Weighted Average Exercise Price of Options		Weighted Average FMV of RSUs		Weighted Average Remaining Term of Options (Years)	Aggregate Intrinsic Value of Options
	Options	RSUs	Options	RSUs	Options	RSUs
Outstanding at December 31, 2019	27,853	—	3,972	—	16,201	—	48,026	$	2.86	$	—	7.64	$	203,431
Granted	4,781	3,816	—	907	—	28,354	37,858	4.11		34.63		—	—
Exercised options / vested RSUs	(11,621)	(149)	(932)	—	(2,347)	(15,554)	(30,603)	1.28		21.03		—	—
Forfeited	(494)	(119)	(17)	—	—	—	(630)	5.24		33.72		—	—
Outstanding at December 31, 2020	20,519	3,548	3,023	907	13,854	12,800	54,651	3.57		47.01		7.05	1,607,562
Granted	1,100	2,466	—	600	—	6,744	10,910	50.60		52.97		—	—
Exercised options / vested RSUs	(6,571)	(1,523)	(667)	—	(2,183)	—	(10,944)	3.33		37.64		—	—
Forfeited	(353)	(296)	(2)	(19)	—	(201)	(871)	4.30		44.20		—	—
Outstanding at December 31, 2021	14,695	4,195	2,354	1,488	11,671	19,343	53,746	$	5.46	$	49.94	6.34	$	662,108

The following table provides additional information for stock option awards outstanding as of December 31, 2021:


	Awards Outstanding	Weighted Average Remaining Term of Options (Years)	Aggregate Intrinsic Value		Weighted Average Exercise Price of Options
Stock options exercisable	25,276	6.13	$	605,212	$	3.86
Stock option expected to vest	3,444	7.87	$	56,896	$	17.05

As of December 31, 2021, total unrecognized stock-based compensation expense of $742.0 million related to granted and unvested share-based compensation arrangements is expected to be recognized over a weighted-average period of 1.8 years. The following table shows stock compensation expense for the years ended December 31, 2021, 2020 and 2019:


	Year ended						Year ended						Year ended
	December 31, 2021						December 31, 2020						December 31, 2019
	Options		RSUs		Total		Options		RSUs		Total		Options		RSUs		Total
Time Based (1)	$	14,654	$	61,085	$	75,739	$	8,176	$	21,286	$	29,462	$	7,065	$	—	$	7,065
PSP (2)	—		82,089		82,089		1,633		21,275		22,908		5,222		—		5,222
LTIP (2)	—		525,465		525,465		9,552		255,116		264,668		5,326		—		5,326
B Shares (3)	—		—		—		8,000		—		8,000		—		—		—
Total	$	14,654	$	668,639	$	683,293	$	27,361	$	297,677	$	325,038	$	17,613	$	—	$	17,613

(1) Time-based awards vest and are expensed over a defined service period.

(2) PSP and LTIP awards vest based on defined performance criteria and are expensed based on the probability of achieving such criteria.

(3) Related to the Business Combination; Class B shares have no economic rights.

The weighted-average grant-date fair values of options granted during the years ended December 31, 2021, 2020 and 2019 were $19.53, $2.00 and $2.00 per share, respectively.During the years ended December 31, 2021, 2020 and 2019 the Company received proceeds from the exercise of stock options of $31.5 million, $27.6 million and $1.1 million respectively, and the aggregate intrinsic value of those stock options exercised was $473.4 million, $1,256.0 million and $3.4 million respectively. The total grant date fair value of stock options that vested during the years ended December 31, 2021, 2020 and 2019 were $14.0 million, $35.1 million and $9.8 million, respectively.

Income Taxes

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Income Taxes

Loss before income tax provision (benefit) for the years ended December 31, 2021, 2020 and 2019 consists of the following:


	Year ended December 31,
	2021		2020		2019
United States	$	(1,391,154)	$	(1,168,482)	$	(142,198)
Foreign	(126,490)		(63,409)		1
Loss before income tax provision (benefit)	$	(1,517,644)	$	(1,231,891)	$	(142,197)

The components of the provision (benefit) for income taxes consists of the following:


	Year Ended December 31,
	2021		2020		2019
Current:
Federal	$	90	$	(49)	$	—
State	514		250		—
Foreign	23,174		1,456		4
Total current provision	23,778		1,657		4
Deferred:
Federal	(5,523)		(442)		—
State	(2,075)		31		54
Foreign	(7,911)		(1,868)		—
Total deferred provision	(15,509)		(2,279)		54
Total income tax provision (benefit)	$	8,269	$	(622)	$	58

The reconciliation between income taxes computed at the U.S. statutory income tax rate to our provision for income taxes for the years ended December 31, 2021, 2020 and 2019 are as follows:


	Year ended December 31,
	2021		2020		2019
Benefit for income taxes at 21% rate	$	(318,705)	$	(258,697)	$	(29,863)
Prior year provision true-ups	(16,878)		(5)		3,164
State taxes, net of federal benefit	(142,119)		(13,328)		(7,522)
Internal restructurings	(167,692)		—		—
Stock-based compensation (benefit) expense	(70,150)		(190,766)		2,412
Non-deductible lobbying expenses	9,938		2,072		1,885
Non-deductible acquisition expenses	455		4,041		2,068
Change in valuation allowance	575,225		243,352		19,988
Net operating loss write-off	—		998		7,246
Non-deductible executive compensation	117,849		118,423		—
(Gain) loss on remeasurement of warrant liabilities	(6,301)		81,388		—
Foreign rate differential	16,588		13,456		—
Foreign currency adjustments	8,265		(2,086)		—
Income tax reserves	5,098		1,676		—
Other	(3,304)		(1,146)		680
Total income tax provision (benefit)	$	8,269	$	(622)	$	58

Significant components of the Company’s deferred tax assets (liabilities) as of December 31, 2021 and 2020 are as follows:


	Year ended December 31,
	2021		2020
Deferred tax assets:
Net operating loss carryforwards	$	778,989	$	459,508
Intangible assets	163,242		—
Accrual and other temporary differences	42,381		19,432
Operating lease	17,141		15,002
Stock-based compensation	88,650		8,618
Gross deferred tax assets	1,090,403		502,560
Valuation allowance	(1,053,892)		(478,667)
Net deferred tax assets	$	36,511	$	23,893

Deferred tax liability:
Capitalized software costs	$	(12,724)	$	(8,469)
Fixed assets	(554)		(1,351)
Operating lease	(15,581)		(11,251)
Other deferred tax liabilities	(221)		—
Total net deferred tax assets	$	7,431	$	2,822

The Company records its deferred tax assets in deposits and other non-current assets and its deferred tax liabilities in other long-term liabilities in the consolidated balance sheets. The Company has provided a valuation allowance for the U.S. deferred tax assets as of December 31, 2021. For the year ended December 31, 2021, the U.S. valuation allowance increased by $575.2 million primarily based on the current year operating loss and intangible assets.

As of December 31, 2021, the Company had U.S. federal and state tax net operating loss carryforwards of $2,722.0 million and $2,996.0 million, respectively, which may be available to offset future income tax liabilities. Of the federal net operating loss carryforward, $676.2 million expires at various dates beginning in 2032 through 2037 and $2,045.8 million does not expire. Of the state net operating loss carryforward, $2,875.3 million expires at various dates beginning in 2022 through 2041 and $120.7 million does not expire.

Utilization of the NOL carryforwards may be subject to limitation under Section 382 of the Internal Revenue Code of 1986 based on ownership changes that have occurred previously or that could occur in the future. These ownership changes may limit the amount of NOL and tax credit carryforwards that can be utilized annually to offset future taxable income and tax, respectively. There could be additional ownership changes in the future, which may result in additional limitations on the utilization of the NOL and tax credit carryforwards. The Company has analyzed the impact of these limitations on its attributes and included the impact of these limitations in its U.S. deferred tax assets.

As of December 31, 2021, foreign earnings of $9.7 million have been retained by the Company’s foreign subsidiaries for indefinite reinvestment. Upon repatriation of those earnings, in the form of dividends or otherwise, the Company could be subject to withholding taxes payable to the various foreign countries. Determination of the amount of unrecognized deferred income tax liability related to these outside basis differences is not practicable.

In addition to filing federal income tax returns, the Company files income tax returns in numerous states and foreign jurisdictions that impose an income tax. The Company is subject to U.S. federal, state and local income tax examinations by tax authorities for the years beginning in 2012. Tax years after 2012 remain open in certain major foreign jurisdictions and are subject to examination by the taxing authorities.

The following table presents a reconciliation of the total amounts of unrecognized tax benefits, excluding interest and penalties, included in long-term income tax liabilities on the Company's consolidated balance sheets:


	Year ended December 31,
	2021		2020		2019
Unrecognized tax benefits at the beginning of the year	$	70,341	$	—	$	—
Additions for tax positions of prior years	—		70,341		—
Foreign currency adjustments	2,066		—		—
Unrecognized tax benefits at the end of the year	$	72,407	$	70,341	$	—

If the unrecognized tax benefit balance as of December 31, 2021 were recognized, it would decrease the Company’s effective tax rate. The Company does not anticipate any material changes to its unrecognized tax benefits within the next 12 months.

The Company recognizes interest and penalties accrued related to unrecognized tax benefits as income tax expense. During the years ended December 31, 2021, 2020 and 2019 the Company recognized $5.0 million, $1.7 million and $0.0 million in interest and penalties. The Company had $6.7 million, $1.7 million and $0.0 million of interest and penalties accrued at December 31, 2021, 2020 and 2019, respectively.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 21
-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
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-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

Segment Information

12 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

Segment Information

The Company operates its business and reports its results through two operating and reportable segments: B2C and B2B, in accordance with ASC Topic 280, Segment Reporting. The B2C segment provides users with DFS, Sportsbook and iGaming products, as well as media and other online consumer product offerings. The B2B segment is involved in the design, development and licensing of sports betting and casino gaming software for its Sportsbook and casino gaming products, which is primarily comprised of SBTech.

Operating segments are components of the Company for which separate discrete financial information is available to and evaluated regularly by the chief operating decision maker (“CODM”), who is the Company’s Chief Executive Officer, in making decisions regarding resource allocation and assessing performance. The CODM assesses a combination of metrics such as revenue and Adjusted EBITDA to evaluate the performance of each operating and reportable segment.

The accounting policies of our two segments are the same as those described in Note 2, “Summary of Significant Accounting Policies and Practices.” Any intercompany revenues or expenses are eliminated in consolidation. All of the Company’s operating revenues and expenses, other than those excluded from Adjusted EBITDA as detailed below, are allocated to the Company’s reportable segments. We define and calculate Adjusted EBITDA as net loss before the impact of interest income or expense, income tax expense and depreciation and amortization, and further adjusted for the following items: stock-based compensation, transaction-related costs, litigation, settlement and related costs and certain other non-recurring, non-cash and non-core items, as described in the reconciliation below.

A measure of segment assets and liabilities has not been currently provided to the Company’s CODM and therefore is not shown below. Summarized financial information for the Company’s segments is shown in the following table:


	Year ended December 31,
	2021		2020		2019
Revenue:
B2C	$	1,198,610	$	538,903	$	323,410
B2B	97,415		75,629		—
Total revenue	1,296,025		614,532		323,410

Adjusted EBITDA:
B2C	(654,432)		(393,461)		(98,640)
B2B	(21,701)		1,542		—
Total adjusted EBITDA	(676,133)		(391,919)		(98,640)
Adjusted for:
Depreciation and amortization	121,138		77,410		13,636
Interest expense (income), net	(1,957)		1,070		(1,348)
Income tax (benefit) provision	8,269		(622)		58
Stock-based compensation	683,293		325,038		17,613
Transaction-related costs	25,316		36,406		10,472
Litigation, settlement and related costs	10,392		6,839		3,695
Advocacy and other related legal expenses	40,415		—		—
(Gain) loss on remeasurement of warrant liabilities	(30,065)		387,565		—
Other non-recurring, special project and non-operating (income) costs	(9,739)		6,210		(32)
Net Loss attributable to common shareholders	$	(1,523,195)	$	(1,231,835)	$	(142,734)

Due to the timing of the Business Combination, the year ended December 31, 2020 reflects B2B/SBTech activity beginning April 24, 2020 and the year ended December 31, 2019 does not reflect B2B/SBTech activity.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Topic 280
-URI http://asc.fasb.org/topic&trid=2134510

+ Details

Loss Per Share

12 Months Ended

Dec. 31, 2021

Earnings Per Share [Abstract]

Loss Per Share

The computation of loss per share and weighted-average shares of the Company’s Class A common stock outstanding for the periods presented are as follows:


	Year ended December 31,
	2021		2020		2019
Net loss	$	(1,523,195)	$	(1,231,835)	$	(142,734)
Basic and diluted weighted-average common shares outstanding	402,492		305,593		184,603
Loss per share attributable to common stockholders:
Basic and diluted	$	(3.78)	$	(4.03)	$	(0.77)

There were no preferred or other dividends declared for the period. For the periods presented, the following securities were not required to be included in the computation of diluted shares outstanding:


	Year ended December 31,
	2021	2020	2019
Warrants	1,613	2,061	182
Stock options and RSUs	53,746	54,651	48,026
Convertible notes	13,337	—	7,409
Total	68,696	56,712	55,617

Related-Party Transactions	12 Months Ended
Related-Party Transactions	Dec. 31, 2021
Related Party Transactions [Abstract]
Related-Party Transactions	Related-Party Transactions Media Purchase Agreement (“MPA”) In July 2015, Old DK entered into an MPA with a related party for various media placements from 2015 through 2018. The MPA was amended to extend through 2021. The annual commitment for calendar years 2017 through 2021 was $15.0 million per year, plus an additional contingent commitment of $5.0 million per year. The contingent commitment relates to the Company’s allocation of its non-integration advertising with other advertisers. Effective January 2019, the future minimum commitments related to the MPA were reduced to $15.0 million in aggregate through December 31, 2021 ($5.0 million per year) and the contingent commitment was removed. As the Company satisfied the $15.0 million commitment, the MPA has expired. The Company recorded expense of $0.0 million, $25.8 million and $8.4 million related to the MPA for the years ended December 31, 2021, 2020, and 2019, respectively, in sales and marketing expenses in the consolidated statements of operations. Financial Advisor and Private Placement Agent Old DK entered into an engagement letter with a related party (the “Financial Advisor”) in August 2019, as amended in December 2019. Pursuant to the engagement letter, the Financial Advisor acted as the Private Placement Agent to Old DK, and Old DK agreed to pay certain acquisition and financing fees in connection with the Business Combination with SBTech and DEAC. In addition, this Financial advisor was also engaged to assist with the GNOG Transaction. For the years ended December 31, 2021, 2020, and 2019, the Company incurred $2.5 million, $12.3 million, and $0.0 million, respectively, of fees. For the $12.3 million of fees incurred during the year ended December 31, 2020, approximately $7.0 million were charged against additional paid in capital in the accompanying consolidated balance sheet with the remainder included in general and administrative expenses in the accompanying consolidated statement of operations. Receivables from Equity Method Investment The Company provides office space and general operational support to DKFS, LLC, an equity-method affiliate. The operational support is primarily general and administrative services. As of December 31, 2021, and 2020, the Company had $0.6 million and $1.1 million, respectively, of receivables from the entity related to those services and expenses to be reimbursed to the Company, which are included within non-current assets in the consolidated balance sheets. Transactions with a Shareholder and their Immediate Family Members As of December 31, 2021 and December 31, 2020, the Company had $3.8 million and $1.9 million respectively, of receivables due from former shareholders of SBTech, which includes a current director and shareholder of the Company. During 2021 and 2020, the Company had $4.5 million and $2.7 million in sales to entities related to an immediate family member of the director. The Company had an associated accounts receivable balance of $0.2 million and $0.5 million as of December 31, 2021 and December 31, 2020, respectively, included in accounts receivable in its consolidated balance sheets.

Leases, Commitments and Contingencies

12 Months Ended

Dec. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

Leases, Commitments and Contingencies

Leases

The Company leases corporate office facilities, data centers, and motor vehicles under operating lease agreements. Some of the Company's leases include one or more options to renew. For a majority of our leases, we do not assume renewals in our determination of the lease term as the renewals are not deemed to be reasonably assured. Our lease agreements generally do not contain any material residual value guarantees or material restrictive covenants. As of December 31, 2021, the Company’s lease agreements typically have terms not exceeding ten years.

Payments under the Company’s lease arrangements may be fixed or variable, and variable lease payments primarily represent costs related to common area maintenance and utilities. The components of lease expense are as follows:


	December 31, 2021		December 31, 2020
Operating lease cost	$	16,551	$	14,968
Short term lease cost	3,273		2,538
Variable lease cost	4,261		3,652
Sublease income	(774)		(1,382)
Total lease cost	$	23,311	$	19,776

Other information related to leases are as follows:


	December 31, 2021			December 31, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	17,162		$	11,586
Right-of-use assets obtained in exchange for new operating lease liabilities	$	3,329		$	42,673
Weighted-average remaining lease term (in years):
Operating leases	5.8
Weighted-average discount rate:
Operating leases	6.5		%

The Company calculated the weighted-average discount rates using incremental borrowing rates, which equal the rates of interest that it would pay to borrow funds on a fully collateralized basis over a similar term.

Maturity of lease liabilities are as follows:


	December 31, 2021
2022	$	16,593
2023	15,518
2024	13,018
2025	11,277
2026	9,855
Thereafter	18,340
Total undiscounted future cash flows	84,600
Less: Imputed interest	(14,445)
Present value of undiscounted future cash flows	$	70,155

As of December 31, 2021, the Company has an additional corporate office lease that has not yet commenced with lease obligations of approximately $33.7 million that are not included in the table above. These operating leases will commence in 2022 with lease a term of approximately 11 years.

As of December 31, 2021, the Company had long-lived assets, which consists of operating lease right-of-use assets and property and equipment, net, of $77.2 million and $32.6 million located in the United States and internationally, respectively. As of December 31, 2020, the company had long-lived assets of $68.9 million and $40.1 million located in the United States and internationally, respectively.

Other Contractual Obligations and Contingencies

The Company is a party to several non-cancelable contracts with vendors where the Company is obligated to make future minimum payments under the terms of these contracts as follows:


	Year ending December 31,
2022	$	404,300
2023	384,029
2024	326,418
2025	277,186
2026	165,414
Thereafter	336,905
Total	$	1,894,252

Contingencies

From time to time, and in the ordinary course of business, the Company may be subject to certain claims, charges and litigation concerning matters arising in connection with the conduct of the Company’s business activities.

In Re: Daily Fantasy Sports Litigation (Multi-District Litigation)

Between late 2015 and early 2016, certain individuals who allegedly registered and competed in daily sports fantasy contests on our and FanDuel’s websites, and their family members, filed numerous actions (primarily purported class actions) against us, FanDuel, and other related parties in courts across the United States. In February 2016, these actions were consolidated in a multi-district litigation in the U.S. District Court for the District of Massachusetts. The plaintiffs asserted 27 claims arising under both state and federal law against the DFS defendants. The plaintiffs’ claims against us generally fall into four categories: (1) the Company’s online daily fantasy sports contests constitute illegal gambling; (2) the Company promulgated false or misleading advertisements that emphasized the ease of play and likelihood of winning; (3) the Company induced consumers to lose money through a deceptive bonus program; and (4) the Company allowed our employees to participate in competitors’ fantasy sports contests using non-public information, which gave such employees an unfair advantage over other contestants. The plaintiffs seek money damages, equitable relief, and disgorgement of gains against the Company.

On October 6, 2021, the court entered judgment and an order approving a settlement and dismissing the claims with prejudice brought by all plaintiffs except the family members plaintiffs and one plaintiff asserting claims against the DFS defendants as a concerned citizen of the State of Florida. This settlement agreement became effective on November 5, 2021; as a result, the only remaining plaintiffs are the family member plaintiffs and the plaintiff who asserted the concerned citizen claims. On January 21, 2022, DraftKings and the family member plaintiffs filed a joint motion for preliminary approval of a proposed settlement; the court heard the motion on January 25, 2022 but has not yet preliminarily approved the proposed settlement. Once the family member settlement agreement becomes effective, the only remaining plaintiff will be the plaintiff who filed the concerned citizen claims.

The Company intends to vigorously defend this case. If the plaintiffs obtain a judgment in their favor in this matter, the Company could be subject to substantial damages and it could be restricted from offering DFS contests in certain states. The Company established an accrual for this matter, but it cannot provide any assurance as to the outcome of this lawsuit.

Despite the potential for significant damages, the Company does not believe, based on currently available information, that the outcome of this proceeding will have a material adverse effect on DraftKings’ financial condition, although the outcome could be material to DraftKings’ operating results for any particular period, depending, in part, upon the operating results for such period.

1,000 Mass Arbitration Demands Filed by One Law Firm

On October 21, 2019, a law firm filed 1000 “mass arbitrations” against the Company with the American Arbitration Association (“AAA”) on behalf of purported DraftKings users that assert claims similar to those in the multi-district litigation

described above. After the law firm filed the 1000 “mass arbitrations,” the AAA informed DraftKings in writing that it would close their files on, and decline to administer, the 1000 “mass arbitrations” unless the Company waived two provisions in its terms of use and that the parties would then be free to bring their claims in court. The Company elected not to waive the subject terms of use provisions. On November 6, 2020, the same law firm filed a complaint against DraftKings in Massachusetts Superior Court (Suffolk County), entitled Aaron Abramson, et al. v. DraftKings. In Abramson, the law firm sought, among other things, to compel arbitration against DraftKings on behalf of nine hundred ninety-nine (999) individuals. The Company established an accrual for this matter.

On August 7, 2021, DraftKings entered into a settlement agreement which, among other things, resolved the Abramson lawsuit. On or about September 8, 2021, the plaintiffs and DraftKings filed a joint dismissal (without prejudice) of the Abramson lawsuit.

Interactive Games LLC

On June 14, 2019, Interactive Games LLC filed suit against the Company in the U.S. District Court for the District of Delaware, alleging that our Daily Fantasy Sports product infringes two patents and the Company’s Sportsbook product offering infringes two different patents. DraftKings intends to vigorously defend this case. In the event that a court ultimately determines that the Company is infringing the asserted patents, it may be subject to substantial damages, which may include treble damages and/or an injunction that could require the Company to modify certain features that we currently offer.

The Company cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages. The Company also cannot provide an estimate of the possible loss or range of loss. Any adverse outcome in these matters could expose the Company to substantial damages or penalties that may have a material adverse impact on the Company’s operations and cash flows.

Winview Inc.

On July 7, 2021, Winview Inc., a Delaware Corporation filed suit against the Company in the U.S. District Court for the District of New Jersey, which was subsequently amended on July 28, 2021, alleging that our Sportsbook product infringes two patents, our Daily Fantasy Sports product infringes one patent, and that our Sportsbook product and Daily Fantasy Sports product infringes another patent. On November 15, 2021, Winview filed a second amended complaint (the “SAC”), adding as defendants DraftKings Inc., a Delaware Corporation, and Crown Gaming Inc., a Delaware Corporation. The SAC largely repeats the allegations of the first amended complaint.

DraftKings intends to vigorously defend this case. In the event that a court ultimately determines that the Company is infringing the asserted patents, it may be subject to substantial damages, which may include treble damages and/or an injunction that could require the Company to modify certain features that we currently offer.

Securities Matters

On July 2, 2021, the first of two substantially similar federal securities law putative class actions was filed in the U.S. District Court for the Southern District of New York against the Company and certain of its officers. The actions allege

violations of Sections 10(b) and 20(a) of the Exchange Act on a behalf of a putative class of persons who purchased or otherwise acquired DraftKings stock between December 23, 2019 and June 15, 2021. The allegations relate to, among other things, allegedly false and misleading statements and/or failures to disclose information about the Company’s business and prospects, based primarily upon the allegations concerning SBTech that were contained in a report published about the Company on June 15, 2021 by Hindenburg Research (the “Hindenburg Report”). The Company intends to vigorously defend against these claims. On November 12, 2021, the Court consolidated the two actions under the caption In re DraftKings Securities Litigation and appointed a lead plaintiff. The lead plaintiff filed a consolidated amended complaint on January 11, 2022.

On July 9, 2021, the Company received a subpoena from the SEC seeking documents concerning certain of the allegations raised in the Hindenburg Report. The Company intends to comply with the related requests and is cooperating with the SEC’s ongoing inquiry.

The Company cannot predict with any degree of certainty the outcome of these matters or determine the extent of any potential liabilities. The Company also cannot provide an estimate of the possible loss or range of loss. Any adverse outcome in these matters could expose the Company to substantial damages or penalties that may have a material adverse impact on the Company’s operations and cash flows.

Shareholder Derivative Litigation

On October 21, 2021, the first of four substantially similar putative shareholder derivative actions was filed in Nevada by alleged shareholders of the Company. The actions purport to assert claims on behalf of the Company against certain current and former officers and/or members of the Board of Directors of the Company and DEAC. Two actions were filed in the U.S. District Court for the District of Nevada, and two actions were filed in Nevada state District Court in Clark County. The actions purport to assert claims on behalf of the Company for, among other things, breach of fiduciary duty and corporate waste based primarily upon the allegations concerning SBTech that were contained in the Hindenburg Report. The two federal court actions also contend that certain individuals are liable to the Company for any adverse judgment in the federal securities class actions described above under Sections 10(b) and 21D of the Exchange Act. The complaint seeks unspecified compensatory damages, changes to corporate governance and internal procedures, equitable and injunctive relief, restitution, costs and attorney's fees.

The Company cannot predict with any degree of certainty the outcome of these matters or determine the extent of any potential liabilities. The Company also cannot provide an estimate of the possible loss or range of loss. Because these actions allege claims on behalf of the Company and purport to seek a judgment in favor of the Company, the Company does not believe, based on currently available information, that the outcome of these proceedings will have a material adverse effect on DraftKings’ financial condition, although the outcome could be material to DraftKings’ operating results for any particular period, depending, in part, upon the operating results for such period.

AG 18, LLC d/b/a/ Arrow Gaming

On August 19, 2021, AG 18, LLC d/b/a/ Arrow Gaming (“Arrow Gaming”) filed a complaint against DraftKings in the United States District Court for the District of New Jersey alleging that DraftKings’ DFS and Casino products infringe four patents. On October 12, 2021, Arrow Gaming filed an amended complaint to add one additional patent. On December 20, 2021, Arrow Gaming filed a second amended complaint adding new allegations with respect to alleged willful infringement.

could be material to DraftKings’ operating results for any particular period, depending, in part, upon the operating results for such period.

Beteiro, LLC

On November 22, 2021, Beteiro, LLC filed a complaint against the Company in the United States District Court for the District of New Jersey alleging that the Company’s Sportsbook and Casino products infringe four patents.

Diogenes Ltd. & Colossus(IOM) Ltd.

On December 1, 2021, Diogenes Ltd. & Colossus (IOM) Ltd. (“Colossus”), filed a complaint against the Company in the United States District Court for the District of Delaware alleging that the Company’s Sportsbook products infringe seven patents. Colossus amended its complaint on February 7, 2022, to, among other things, add one additional patent.

Internal Revenue Service

The Company is currently under Internal Revenue Service audit for prior tax years, with the primary unresolved issues relating to excise taxation of fantasy sports contests and informational reporting and withholding. The final resolution of that audit, and other audits or litigation, may differ from the amounts recorded in these consolidated financial statements and may materially affect the Company’s consolidated financial statements in the period or periods in which that determination is made.

Letters of Credit

In connection with the Credit Agreement with Pacific Western Bank, the Company has entered into several letters of credit totaling $4.2 million as of December 31, 2021 and December 31, 2020 for the Company’s leases of office space.

Summary of Significant Accounting Policies and Practices (Policies)

12 Months Ended

Dec. 31, 2021

Accounting Policies [Abstract]

Basis of Presentation and Principles of Consolidation

This revision does not have a material impact on the Company's presentation of cash flows as the change in cash reserved for users will continue to be presented as a supplemental disclosure in the consolidated statement of cash flows. In addition, the Company will continue to present cash reserved for users as a separate line item on the Company’s condensed consolidated balance sheet. These revisions have no impact on the Company’s previously reported consolidated statements of operations or consolidated balance sheets, including the Company’s cash and cash equivalents and cash reserved for user balances. Prior period amounts have been revised to conform to the current period presentation.

Concentrations Risks and Uncertainties

Concentration Risks and Uncertainties

Business Combinations

Cash and cash equivalents

Cash and cash equivalents consist of highly liquid, unrestricted savings, money market funds, checking and other bank accounts.

Cash Reserved for Users

Receivables Reserved for Users

Accounts Receivables

Property and Equipment, net

Property and Equipment, Net


Computer equipment and software			3 years
Furniture and fixtures			7 years
Leasehold improvements			Lesser of the lease terms or the estimated useful lives of the improvements, generally 1–10 years

Intangible Assets, Net

Developed Technology

Customer Relationships

Internally Developed Software

Gaming Licenses

Trademarks and Tradenames

Digital Assets

Impairment of Long-Lived Assets

Goodwill

Equity Method Investment

by regulators and courts, among other information. When a loss is determined to be probable, and the amount of the loss can be reasonably estimated, an estimated contingent liability is recorded.

Revenue Recognition

The Company determines revenue recognition through the following steps:

•Identify the contract, or contracts, with the customer;

•Identify the performance obligations in the contract;

•Determine the transaction price;

•Allocate the transaction price to performance obligations in the contract; and

•Recognize revenue when, or as, the Company satisfies performance obligations by transferring the promised good or services.

Online Gaming

Gaming software

Non-fungible token ("NFT") content

Transaction Price Considerations

Certain costs to obtain or fulfill contracts

Contract balances

Cost of Revenue

Sales and Marketing

Product and Technology

General and Administrative

Benefit Plans

Stock-based Compensation

Income Taxes

Earnings (loss) per share

Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements Not Yet Adopted

Recently Adopted Accounting Pronouncements

standard as of January 1, 2021. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements and related disclosures.

Recently Issued Accounting Pronouncements Not Yet Adopted

Summary of Significant Accounting Policies and Practices (Tables)

12 Months Ended

Dec. 31, 2021

Accounting Policies [Abstract]

Schedule of revision of financial statements

The following table presents the consolidated statement of cash flows line items after giving effect to the revision of presentation as discussed above for 2020 and 2019.


	Year ended December 31, 2020							Year ended December 31, 2019
	Reported		Adjustments			Revised		Reported		Adjustments			Revised
Adjustments to reconcile net loss to net cash flows used in operating activities:
Change in operating assets and liabilities, net of effect of business combinations:
Cash reserved for users	$	(143,718)	$	143,718		$	—	$	(32,302)	$	32,302		$	—
Net cash flows used in operating activities	(337,875)		143,718			(194,157)		(78,880)		32,302			(46,578)

Net increase (decrease) in cash, cash equivalents and restricted cash	1,740,725		143,718			1,884,443		(41,375)		32,302			(9,073)
Cash and cash equivalents and restricted cash at the beginning of period	76,533		144,000		(a)	220,533		117,908		111,698		(b)	229,606
Cash and cash equivalents and restricted cash, end of period	$	1,817,258	$	287,718		$	2,104,976	$	76,533	$	144,000		$	220,533

(a)Represents the cash reserved for user balance as of December 31, 2019 as previously included in the Company's 2020 Annual Report filed with the SEC.

(b)Represents the cash reserved for user balance as of December 31, 2018 as previously included in the Company's Form S-1 filed with the SEC on October 6, 2020.

Schedule of property plant and equipment useful life

Useful lives of each asset class are generally as follows:


Computer equipment and software			3 years
Furniture and fixtures			7 years
Leasehold improvements			Lesser of the lease terms or the estimated useful lives of the improvements, generally 1–10 years

Business Combinations (Tables)

12 Months Ended

Dec. 31, 2021

Business Combination and Asset Acquisition [Abstract]

Summary of consideration transferred at Closing


Cash consideration	$	40,599
Share consideration (1)	29,399
Total consideration	$	69,998

(1)Represents the issuance of 0.5 million shares of the Company’s Class A common stock at a fair value of $63.60 per share to the former stockholders of VSiN.

The following summarizes the consideration transferred at Closing for the SBTech Acquisition (in thousands):


Cash consideration (1)	$	184,688
Share consideration (2)	789,064
Other cash consideration (3)	3,615
Total SBTech consideration	$	977,367

Purchase price allocation

The purchase price of the VSiN acquisition was allocated as follows:


Operating lease right-of-use assets	$	6,120
Intangible assets	21,758
Other assets	4,516
Liabilities	(9,611)
Goodwill	47,215
Total	$	69,998

The following table summarizes the consideration paid for SBTech and the final fair value of the assets acquired and liabilities assumed at the acquisition date on April 23, 2020.


Cash and cash equivalents	$	9,639
Trade receivables	17,815
Other current assets	3,674
Property and equipment	10,677
Intangible assets	484,051
Operating lease right-of-use assets	27,696
Other non-current assets	1,017
Total identifiable assets acquired	554,569
Liabilities assumed:
Accounts payable and accrued expenses	23,613
Current operating lease liabilities	3,583
Long-term income tax liability	63,575
Non-current operating lease liabilities	24,113
Other long-term liabilities	558
Total liabilities assumed	115,442
Net assets acquired (a)	439,127
Purchase consideration (b)	977,367
Goodwill (b) – (a)	$	538,240

Summary of intangible assets

The intangible assets acquired as part of the VSiN acquisition were as follows:


	Fair Value		Weighted-Average Useful Life (in years)
Developed technology - software	$	558	3.0
Customer relationships	1,200		3.0
Trademarks and trade names	20,000		5.0
Total	$	21,758

Intangible Assets


	Fair Value		Weighted- Average Useful Life (in years)
Developed Technology	$	385,566	8.0
Customer relationships	93,699		5.0
Trademarks and trade names	4,308		3.0
Gaming License	478		2.0	-	3.0
Total	$	484,051

Summary of pro forma financial information


	Year Ended December 31,
	2020 Pro Forma		2019 Pro Forma
Revenue	$	643,502	$	431,834
Net loss	$	(1,232,651)	$	(219,829)

Property and Equipment (Tables)

12 Months Ended

Dec. 31, 2021

Property, Plant and Equipment [Abstract]

Schedule of property and equipment, net

Property and equipment, net consists of the following:


	December 31, 2021		December 31, 2020
Computer equipment and software	$	48,200	$	25,824
Furniture and fixtures	8,057		7,754
Leasehold improvements	30,166		24,687
Property and Equipment	86,423		58,265
Accumulated depreciation	(40,404)		(17,438)
Property and Equipment, net	$	46,019	$	40,827

Intangible Assets and Goodwill (Tables)

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of intangible assets, finite-lived

As of December 31, 2021, intangible assets, net consists of the following:


	Weighted- Average Remaining Amortization Period	Gross Carrying Amount		Accumulated Amortization		Net
Amortized intangible assets:
Developed technology	6.4	$	422,900	$	(87,089)	$	335,811
Internally developed software	2.6	117,953		(52,607)		65,346
Gaming licenses	7.3	54,442		(13,466)		40,976
Trademarks, tradenames and other	4.5	30,639		(5,952)		24,687
Customer relationships	3.3	99,728		(33,526)		66,202
		725,662		(192,640)		533,022

Indefinite-lived intangible assets:
Digital assets	Indefinite-lived	1,995		—		1,995
Intangible assets, net		$	727,657	$	(192,640)	$	535,017

As of December 31, 2020, intangible assets, net consists of the following:


	Weighted- Average Remaining Amortization Period	Gross Carrying Amount		Accumulated Amortization		Net
Developed technology	7.3	$	439,624	$	(37,704)	$	401,920
Internally developed software	2.3	72,268		(33,179)		39,089
Gaming licenses	3.5	23,685		(6,354)		17,331
Trademarks and tradenames	2.8	6,537		(1,123)		5,414
Customer relationships	4.3	106,836		(14,660)		92,176
Intangible assets, net		$	648,950	$	(93,020)	$	555,930

Schedule of intangible assets, indefinite-lived

As of December 31, 2021, intangible assets, net consists of the following:


	Weighted- Average Remaining Amortization Period	Gross Carrying Amount		Accumulated Amortization		Net
Amortized intangible assets:
Developed technology	6.4	$	422,900	$	(87,089)	$	335,811
Internally developed software	2.6	117,953		(52,607)		65,346
Gaming licenses	7.3	54,442		(13,466)		40,976
Trademarks, tradenames and other	4.5	30,639		(5,952)		24,687
Customer relationships	3.3	99,728		(33,526)		66,202
		725,662		(192,640)		533,022

Indefinite-lived intangible assets:
Digital assets	Indefinite-lived	1,995		—		1,995
Intangible assets, net		$	727,657	$	(192,640)	$	535,017

Schedule of estimated future amortization of intangible assets

The table below shows expected amortization expense for the next five years acquired intangible assets, net recorded as of December 31, 2021:


Year ending December 31,	Estimated Amortization
2022	$	115,359
2023	107,128
2024	98,584
2025	69,141
2026	57,148

Schedule of Goodwill

The changes in the carrying amount of goodwill for the year ended December 31, 2021 by reporting unit are:


	B2C		B2B		Media		Total
Balance as of December 31, 2020	$	353,083	$	216,520	$	—	$	569,603
Goodwill resulting from acquisitions	7,673		8,300		47,215		63,188
Cumulative translation adjustment	—		(17,136)		—		(17,136)
Balance as of December 31, 2021	$	360,756	$	207,684	$	47,215	$	615,655

Accounts Payable and Accrued Expenses (Tables)

12 Months Ended

Dec. 31, 2021

Accounts Payable and Accrued Liabilities, Current [Abstract]

Schedule of Accounts payable and accrued expenses

Accounts payable and accrued expenses consist of the following:


	December 31, 2021		December 31, 2020
Accounts payable	$	52,537	$	28,076
Accrued compensation and related expenses	63,803		48,449
Accrued marketing	55,275		51,436
Accrued professional fees	18,400		10,640
Accrued operating taxes	50,813		19,509
Accrued partnership fees	72,736		21,112
Accrued other expenses	74,173		44,411
Total	$	387,737	$	223,633

Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2021

Fair Value Disclosures [Abstract]

Summary of Assets and Liabilities Measured at Fair Value


	December 31, 2021
	Level 1		Level 2		Level 3		Total
Assets
Cash equivalents:
Money market funds (1)	$	550,169	$	—	$	—	$	550,169
Other non-current assets:
Equity securities (2)	27,200		—		—		27,200
Put options in Vivid Seats, Inc. (2)	—		—		3,850		3,850
Total	$	577,369	$	—	$	3,850	$	581,219

Liabilities
Private Warrants (3)	$	—	$	26,911	$	—	$	26,911
Total	$	—	$	26,911	$	—	$	26,911


	December 31, 2020
	Level 1		Level 2		Level 3		Total
Liabilities
Private Warrants (3)	$	—	$	65,444	$	—	$	65,444
Total	$	—	$	65,444	$	—	$	65,444

(1)The Company measures its money market funds at fair value. The Company classifies its money market funds as Level 1 because the Company values these assets using quoted market prices.


	December 31, 2021
Class A common stock price	$	10.88
Repurchase price	$	9.77
Term to repurchase date (in years)	0.71 years
Volatility	60.0		%
Risk-free rate	0.3		%
Dividend yield	0.0		%

Fair Value Assumptions

The following table provides qualitative information regarding the assumptions used to fair value the instrument:


	December 31, 2021
Class A common stock price	$	10.88
Repurchase price	$	9.77
Term to repurchase date (in years)	0.71 years
Volatility	60.0		%
Risk-free rate	0.3		%
Dividend yield	0.0		%

Revenue Recognition (Tables)

12 Months Ended

Dec. 31, 2021

Revenue from Contract with Customer [Abstract]

Summary of deferred revenue balances

The deferred revenue balances were as follows:


	Year Ended December 31,
	2021		2020
Deferred revenue, beginning of the period	$	30,627	$	20,760
Deferred revenue, end of the period	$	91,554	$	30,627
Revenue recognized in the period from amounts included in deferred revenue at the beginning of the period	$	28,319	$	11,221

Summary of disaggregation of revenue

Disaggregation of revenue for years ended December 31, 2021, 2020 and 2019 are as follows:


	Year Ended December 31,
	2021		2020		2019
Online gaming	$	1,145,539	$	517,632	$	308,177
Gaming software	97,415		75,629		—
Other	53,071		21,271		15,233
Total Revenue	$	1,296,025	$	614,532	$	323,410

Summary of company's revenue by geographical location

The following table presents the Company’s revenue by geographic region for the periods indicated:


	Year ended December 31,
	2021		2020		2019
United States	$	1,198,748	$	544,463	$	318,144
International	97,277		70,069		5,266
Total Revenue	$	1,296,025	$	614,532	$	323,410

Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2021

Share-based Payment Arrangement [Abstract]

Schedule of assumptions used to measure fair value

The fair value of the stock options issued was measured using the following assumptions:


	Year ended December 31,
	2021		2020		2019
Risk free interest rate	1.1	%	0.4	%	2.0	%
Expected term (in years)	5.8		6.1		6.0
Expected volatility	43.0	%	42.5	%	41.5	%
Expected dividend yield	0.0	%	0.0	%	0.0	%

The model uses multiple input variables that determined the probability of satisfying the market condition requirements as follows:


	Year ended December 31, 2020
Risk free interest rate	1.7	%
Expected volatility	38.9	%
Expected dividend yield	0.0	%

Schedule of stock option activity

The following table shows stock option activity for the year ended December 31, 2021, 2020, and 2019:


	Time-based		PSP		LTIP		Total	Weighted Average Exercise Price of Options		Weighted Average FMV of RSUs		Weighted Average Remaining Term of Options (Years)	Aggregate Intrinsic Value of Options
	Options	RSUs	Options	RSUs	Options	RSUs
Outstanding at December 31, 2019	27,853	—	3,972	—	16,201	—	48,026	$	2.86	$	—	7.64	$	203,431
Granted	4,781	3,816	—	907	—	28,354	37,858	4.11		34.63		—	—
Exercised options / vested RSUs	(11,621)	(149)	(932)	—	(2,347)	(15,554)	(30,603)	1.28		21.03		—	—
Forfeited	(494)	(119)	(17)	—	—	—	(630)	5.24		33.72		—	—
Outstanding at December 31, 2020	20,519	3,548	3,023	907	13,854	12,800	54,651	3.57		47.01		7.05	1,607,562
Granted	1,100	2,466	—	600	—	6,744	10,910	50.60		52.97		—	—
Exercised options / vested RSUs	(6,571)	(1,523)	(667)	—	(2,183)	—	(10,944)	3.33		37.64		—	—
Forfeited	(353)	(296)	(2)	(19)	—	(201)	(871)	4.30		44.20		—	—
Outstanding at December 31, 2021	14,695	4,195	2,354	1,488	11,671	19,343	53,746	$	5.46	$	49.94	6.34	$	662,108

The following table provides additional information for stock option awards outstanding as of December 31, 2021:


	Awards Outstanding	Weighted Average Remaining Term of Options (Years)	Aggregate Intrinsic Value		Weighted Average Exercise Price of Options
Stock options exercisable	25,276	6.13	$	605,212	$	3.86
Stock option expected to vest	3,444	7.87	$	56,896	$	17.05

Summary of stock compensation expense

The following table shows stock compensation expense for the years ended December 31, 2021, 2020 and 2019:


	Year ended						Year ended						Year ended
	December 31, 2021						December 31, 2020						December 31, 2019
	Options		RSUs		Total		Options		RSUs		Total		Options		RSUs		Total
Time Based (1)	$	14,654	$	61,085	$	75,739	$	8,176	$	21,286	$	29,462	$	7,065	$	—	$	7,065
PSP (2)	—		82,089		82,089		1,633		21,275		22,908		5,222		—		5,222
LTIP (2)	—		525,465		525,465		9,552		255,116		264,668		5,326		—		5,326
B Shares (3)	—		—		—		8,000		—		8,000		—		—		—
Total	$	14,654	$	668,639	$	683,293	$	27,361	$	297,677	$	325,038	$	17,613	$	—	$	17,613

(1) Time-based awards vest and are expensed over a defined service period.

(2) PSP and LTIP awards vest based on defined performance criteria and are expensed based on the probability of achieving such criteria.

(3) Related to the Business Combination; Class B shares have no economic rights.

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Summary of loss before provision (benefit) for income taxes

Loss before income tax provision (benefit) for the years ended December 31, 2021, 2020 and 2019 consists of the following:


	Year ended December 31,
	2021		2020		2019
United States	$	(1,391,154)	$	(1,168,482)	$	(142,198)
Foreign	(126,490)		(63,409)		1
Loss before income tax provision (benefit)	$	(1,517,644)	$	(1,231,891)	$	(142,197)

Components of the provision (benefit) for income taxes

The components of the provision (benefit) for income taxes consists of the following:


	Year Ended December 31,
	2021		2020		2019
Current:
Federal	$	90	$	(49)	$	—
State	514		250		—
Foreign	23,174		1,456		4
Total current provision	23,778		1,657		4
Deferred:
Federal	(5,523)		(442)		—
State	(2,075)		31		54
Foreign	(7,911)		(1,868)		—
Total deferred provision	(15,509)		(2,279)		54
Total income tax provision (benefit)	$	8,269	$	(622)	$	58

Reconciliation between income taxes computed at statutory rate to the provision

The reconciliation between income taxes computed at the U.S. statutory income tax rate to our provision for income taxes for the years ended December 31, 2021, 2020 and 2019 are as follows:


	Year ended December 31,
	2021		2020		2019
Benefit for income taxes at 21% rate	$	(318,705)	$	(258,697)	$	(29,863)
Prior year provision true-ups	(16,878)		(5)		3,164
State taxes, net of federal benefit	(142,119)		(13,328)		(7,522)
Internal restructurings	(167,692)		—		—
Stock-based compensation (benefit) expense	(70,150)		(190,766)		2,412
Non-deductible lobbying expenses	9,938		2,072		1,885
Non-deductible acquisition expenses	455		4,041		2,068
Change in valuation allowance	575,225		243,352		19,988
Net operating loss write-off	—		998		7,246
Non-deductible executive compensation	117,849		118,423		—
(Gain) loss on remeasurement of warrant liabilities	(6,301)		81,388		—
Foreign rate differential	16,588		13,456		—
Foreign currency adjustments	8,265		(2,086)		—
Income tax reserves	5,098		1,676		—
Other	(3,304)		(1,146)		680
Total income tax provision (benefit)	$	8,269	$	(622)	$	58

Components of deferred tax assets and liabilities

Significant components of the Company’s deferred tax assets (liabilities) as of December 31, 2021 and 2020 are as follows:


	Year ended December 31,
	2021		2020
Deferred tax assets:
Net operating loss carryforwards	$	778,989	$	459,508
Intangible assets	163,242		—
Accrual and other temporary differences	42,381		19,432
Operating lease	17,141		15,002
Stock-based compensation	88,650		8,618
Gross deferred tax assets	1,090,403		502,560
Valuation allowance	(1,053,892)		(478,667)
Net deferred tax assets	$	36,511	$	23,893

Deferred tax liability:
Capitalized software costs	$	(12,724)	$	(8,469)
Fixed assets	(554)		(1,351)
Operating lease	(15,581)		(11,251)
Other deferred tax liabilities	(221)		—
Total net deferred tax assets	$	7,431	$	2,822

Summary of reconciliation unrecognized tax benefits


	Year ended December 31,
	2021		2020		2019
Unrecognized tax benefits at the beginning of the year	$	70,341	$	—	$	—
Additions for tax positions of prior years	—		70,341		—
Foreign currency adjustments	2,066		—		—
Unrecognized tax benefits at the end of the year	$	72,407	$	70,341	$	—

Segment Information (Tables)

12 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

Summary of financial information for the Company's segments

Summarized financial information for the Company’s segments is shown in the following table:


	Year ended December 31,
	2021		2020		2019
Revenue:
B2C	$	1,198,610	$	538,903	$	323,410
B2B	97,415		75,629		—
Total revenue	1,296,025		614,532		323,410

Adjusted EBITDA:
B2C	(654,432)		(393,461)		(98,640)
B2B	(21,701)		1,542		—
Total adjusted EBITDA	(676,133)		(391,919)		(98,640)
Adjusted for:
Depreciation and amortization	121,138		77,410		13,636
Interest expense (income), net	(1,957)		1,070		(1,348)
Income tax (benefit) provision	8,269		(622)		58
Stock-based compensation	683,293		325,038		17,613
Transaction-related costs	25,316		36,406		10,472
Litigation, settlement and related costs	10,392		6,839		3,695
Advocacy and other related legal expenses	40,415		—		—
(Gain) loss on remeasurement of warrant liabilities	(30,065)		387,565		—
Other non-recurring, special project and non-operating (income) costs	(9,739)		6,210		(32)
Net Loss attributable to common shareholders	$	(1,523,195)	$	(1,231,835)	$	(142,734)

Loss Per Share (Tables)

12 Months Ended

Dec. 31, 2021

Earnings Per Share [Abstract]

Schedule of loss per share and weighted-average shares

The computation of loss per share and weighted-average shares of the Company’s Class A common stock outstanding for the periods presented are as follows:


	Year ended December 31,
	2021		2020		2019
Net loss	$	(1,523,195)	$	(1,231,835)	$	(142,734)
Basic and diluted weighted-average common shares outstanding	402,492		305,593		184,603
Loss per share attributable to common stockholders:
Basic and diluted	$	(3.78)	$	(4.03)	$	(0.77)

Schedule of securities and Convertible Notes


	Year ended December 31,
	2021	2020	2019
Warrants	1,613	2,061	182
Stock options and RSUs	53,746	54,651	48,026
Convertible notes	13,337	—	7,409
Total	68,696	56,712	55,617

Leases, Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

Schedule of components of lease expense

The components of lease expense are as follows:


	December 31, 2021		December 31, 2020
Operating lease cost	$	16,551	$	14,968
Short term lease cost	3,273		2,538
Variable lease cost	4,261		3,652
Sublease income	(774)		(1,382)
Total lease cost	$	23,311	$	19,776

Other information related to leases are as follows:


	December 31, 2021			December 31, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	17,162		$	11,586
Right-of-use assets obtained in exchange for new operating lease liabilities	$	3,329		$	42,673
Weighted-average remaining lease term (in years):
Operating leases	5.8
Weighted-average discount rate:
Operating leases	6.5		%

Schedule of maturity of lease liabilities

Maturity of lease liabilities are as follows:


	December 31, 2021
2022	$	16,593
2023	15,518
2024	13,018
2025	11,277
2026	9,855
Thereafter	18,340
Total undiscounted future cash flows	84,600
Less: Imputed interest	(14,445)
Present value of undiscounted future cash flows	$	70,155

Schedule of obligated to make future minimum payments under the non-cancelable

The Company is a party to several non-cancelable contracts with vendors where the Company is obligated to make future minimum payments under the terms of these contracts as follows:


	Year ending December 31,
2022	$	404,300
2023	384,029
2024	326,418
2025	277,186
2026	165,414
Thereafter	336,905
Total	$	1,894,252

Description of Business (Details)	Dec. 31, 2021 jurisdiction
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of jurisdictions with legalized sports betting in which company operates	15

Summary of Significant Accounting Policies and Practices - Revision of Cash Flow Statements (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Change in operating assets and liabilities, net of effect of acquisitions:
Cash reserved for users		$ 0	$ 0
Net cash flows used in operating activities	$ (419,508)	(194,157)	(46,578)
Net increase (decrease) in cash, cash equivalents and restricted cash	524,866	1,884,443	(9,073)
Cash and cash equivalents and restricted cash at the beginning of period	2,104,976	220,533	229,606
Cash and cash equivalents and restricted cash, end of period	2,629,842	2,104,976	220,533
Reported
Change in operating assets and liabilities, net of effect of acquisitions:
Cash reserved for users		(143,718)	(32,302)
Net cash flows used in operating activities		(337,875)	(78,880)
Net increase (decrease) in cash, cash equivalents and restricted cash		1,740,725	(41,375)
Cash and cash equivalents and restricted cash at the beginning of period	1,817,258	76,533	117,908
Cash and cash equivalents and restricted cash, end of period		1,817,258	76,533
Adjustments
Change in operating assets and liabilities, net of effect of acquisitions:
Cash reserved for users		143,718	32,302
Net cash flows used in operating activities		143,718	32,302
Net increase (decrease) in cash, cash equivalents and restricted cash		143,718	32,302
Cash and cash equivalents and restricted cash at the beginning of period	$ 287,718	144,000	111,698
Cash and cash equivalents and restricted cash, end of period		$ 287,718	$ 144,000

Summary of Significant Accounting Policies and Practices - Property and Equipment, net (Details)	12 Months Ended
	Dec. 31, 2021
Computer equipment and software
Accounting Policies [Line Items]
Estimated useful lives	3 years
Furniture and fixtures
Accounting Policies [Line Items]
Estimated useful lives	7 years
Minimum \| Leasehold improvements
Accounting Policies [Line Items]
Estimated useful lives	1 year
Maximum \| Leasehold improvements
Accounting Policies [Line Items]
Estimated useful lives	10 years

Summary of Significant Accounting Policies and Practices - Warrant Liabilities (Details)	May 14, 2019 $ / shares shares
Class of Warrant or Right [Line Items]
Number of warrants issued (in shares)	13,300,000
Number of shares issuable per warrant (in shares)	6,300,000
Private Warrants
Class of Warrant or Right [Line Items]
Number of warrants issued (in shares)	6,300,000
Exercise price per warrant (in dollars per share) \| $ / shares	$ 11.50
Purchase price of warrants (in dollars per share) \| $ / shares	$ 1.50
Public Warrants
Class of Warrant or Right [Line Items]
Number of warrants issued (in shares)	13,300,000
Exercise price per warrant (in dollars per share) \| $ / shares	$ 11.50
Number of shares issuable per warrant (in shares)	1

Summary of Significant Accounting Policies and Practices - Narrative (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2021 USD ($) reporting_unit	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)
Accounting Policies [Line Items]
Reporting units \| reporting_unit	3
Impairment of goodwill	$ 0	$ 0	$ 0
Advertising cost	831,100	430,400	152,200
Contributions to employee benefits	$ 6,700	$ 0	$ 0
D K F S L L C
Accounting Policies [Line Items]
Equity method investment ownership percentage	49.90%
DBDK Venture Fund
Accounting Policies [Line Items]
Equity method investment ownership percentage	28.60%
Investment commitment	$ 17,500
Investment amount	$ 3,500

Business Combinations - Narrative (Details) - USD ($)					12 Months Ended
Business Combinations - Narrative (Details) - USD ($)	Aug. 09, 2021	Apr. 01, 2021	Mar. 26, 2021	Apr. 23, 2020	Dec. 31, 2020	Dec. 31, 2021
Business Acquisition [Line Items]
Goodwill					$ 569,603,000	$ 615,655,000
Vegas Sports Information Network Inc.
Business Acquisition [Line Items]
Equity interest acquired			100.00%
Goodwill, expected tax deductible amount			$ 0
Cash consideration			40,599,000
Share consideration			$ 29,399,000
Share consideration (in shares)			500,000
Weighted average fair value (in dollars per share)			$ 63.60
Goodwill			$ 47,215,000
Consideration			$ 69,998,000
Blue Ribbon
Business Acquisition [Line Items]
Equity interest acquired		100.00%
Cash consideration		$ 17,800,000
Share consideration		$ 3,800,000
SB Tech
Business Acquisition [Line Items]
Equity interest acquired				100.00%
Cash consideration				$ 184,688,000
Share consideration				$ 789,064,000
Share consideration (in shares)				45,000,000
Weighted average fair value (in dollars per share)				$ 17.53
Goodwill				$ 538,240,000
Consideration				977,367,000
Transaction costs, expensed					30,900,000
Transaction costs, direct					$ 63,700,000
SB Tech \| B2C
Business Acquisition [Line Items]
Goodwill				348,300,000
SB Tech \| B2B
Business Acquisition [Line Items]
Goodwill				$ 189,900,000
Golden Nugget Online Gaming, Inc
Business Acquisition [Line Items]
Consideration	$ 1,560,000,000
Share ratio (in shares)	0.365

Business Combinations - Consideration (Details) - USD ($) $ / shares in Units, $ in Thousands			12 Months Ended
	Mar. 26, 2021	Apr. 23, 2020	Dec. 31, 2021
Vegas Sports Information Network Inc.
Business Acquisition [Line Items]
Cash consideration	$ 40,599
Share consideration	29,399
Total consideration	$ 69,998
Share consideration (in shares)	500,000
Weighted average fair value (in dollars per share)	$ 63.60
SB Tech
Business Acquisition [Line Items]
Cash consideration		$ 184,688
Share consideration		789,064
Other cash consideration		3,615
Total consideration		$ 977,367
Share consideration (in shares)		45,000,000
Weighted average fair value (in dollars per share)		$ 17.53
Share consideration, excluding contingent consideration shares			$ 776,500
Share consideration, excluding contingent consideration shares (in shares)			40,700,000
Options vested (in shares)			3,600,000
Contingent consideration for earnout shares issued to former stockholders			$ 12,600
Contingent consideration for earnout shares issued to former stockholders (in shares)			720,000

Business Combinations - Purchase Price Allocation (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Mar. 26, 2021	Dec. 31, 2020	Apr. 23, 2020
Business Acquisition [Line Items]
Goodwill	$ 615,655		$ 569,603
Vegas Sports Information Network Inc.
Business Acquisition [Line Items]
Other current assets		$ 4,516
Intangible assets		21,758
Operating lease right-of-use assets		6,120
Total liabilities assumed		9,611
Goodwill		47,215
Total		$ 69,998
SB Tech
Business Acquisition [Line Items]
Cash and cash equivalents				$ 9,639
Trade receivables				17,815
Other current assets				3,674
Intangible assets				484,051
Operating lease right-of-use assets				27,696
Property and equipment				10,677
Other non-current assets				1,017
Total identifiable assets acquired				554,569
Accounts payable and accrued expenses				23,613
Current operating lease liabilities				3,583
Long-term income tax liability				63,575
Non-current operating lease liabilities				24,113
Other long-term liabilities				558
Total liabilities assumed				115,442
Net assets acquired				439,127
Goodwill				538,240
Total				$ 977,367

Business Combinations - Intangible Assets Acquired (Details) - USD ($) $ in Thousands	Mar. 26, 2021	Apr. 23, 2020
Vegas Sports Information Network Inc.
Acquired Finite-Lived Intangible Assets [Line Items]
Fair Value	$ 21,758
Vegas Sports Information Network Inc. \| Developed technology
Acquired Finite-Lived Intangible Assets [Line Items]
Fair Value	$ 558
Weighted-Average Useful Life	3 years
Vegas Sports Information Network Inc. \| Customer relationships
Acquired Finite-Lived Intangible Assets [Line Items]
Fair Value	$ 1,200
Weighted-Average Useful Life	3 years
Vegas Sports Information Network Inc. \| Trademarks and trade names
Acquired Finite-Lived Intangible Assets [Line Items]
Fair Value	$ 20,000
Weighted-Average Useful Life	5 years
SB Tech
Acquired Finite-Lived Intangible Assets [Line Items]
Fair Value		$ 484,051
SB Tech \| Developed technology
Acquired Finite-Lived Intangible Assets [Line Items]
Fair Value		$ 385,566
Weighted-Average Useful Life		8 years
SB Tech \| Customer relationships
Acquired Finite-Lived Intangible Assets [Line Items]
Fair Value		$ 93,699
Weighted-Average Useful Life		5 years
SB Tech \| Trademarks and trade names
Acquired Finite-Lived Intangible Assets [Line Items]
Fair Value		$ 4,308
Weighted-Average Useful Life		3 years
SB Tech \| Gaming licenses
Acquired Finite-Lived Intangible Assets [Line Items]
Fair Value		$ 478
SB Tech \| Gaming licenses \| Minimum
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted-Average Useful Life		2 years
SB Tech \| Gaming licenses \| Maximum
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted-Average Useful Life		3 years

Business Combinations - Pro Forma Information (Details) - SB Tech - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Business Acquisition [Line Items]
Revenue	$ 643,502	$ 431,834
Net loss	$ (1,232,651)	$ (219,829)

Property and Equipment (Details) - USD ($) $ in Thousands	12 Months Ended
Property and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Property, Plant and Equipment [Line Items]
Property and Equipment	$ 86,423	$ 58,265
Accumulated depreciation	(40,404)	(17,438)
Property and Equipment, net	46,019	40,827
Depreciation expense	13,800	9,300	$ 4,100
Computer equipment and software
Property, Plant and Equipment [Line Items]
Property and Equipment	48,200	25,824
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property and Equipment	8,057	7,754
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and Equipment	$ 30,166	$ 24,687

Intangible Assets and Goodwill - Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 725,662	$ 648,950
Accumulated Amortization	(192,640)	(93,020)
Net	533,022	555,930
Indefinite-lived Intangible Assets [Line Items]
Intangible assets, gross	727,657
Intangible assets, net	535,017	555,930
Amortization expense	107,300	$ 68,100	$ 9,500
Digital assets
Indefinite-lived Intangible Assets [Line Items]
Indefinite-lived intangible assets	$ 1,995
Developed technology
Finite-Lived Intangible Assets [Line Items]
Weighted- Average Remaining Amortization Period	6 years 4 months 24 days	7 years 3 months 18 days
Gross Carrying Amount	$ 422,900	$ 439,624
Accumulated Amortization	(87,089)	(37,704)
Net	$ 335,811	$ 401,920
Internally developed software
Finite-Lived Intangible Assets [Line Items]
Weighted- Average Remaining Amortization Period	2 years 7 months 6 days	2 years 3 months 18 days
Gross Carrying Amount	$ 117,953	$ 72,268
Accumulated Amortization	(52,607)	(33,179)
Net	$ 65,346	$ 39,089
Gaming licenses
Finite-Lived Intangible Assets [Line Items]
Weighted- Average Remaining Amortization Period	7 years 3 months 18 days	3 years 6 months
Gross Carrying Amount	$ 54,442	$ 23,685
Accumulated Amortization	(13,466)	(6,354)
Net	$ 40,976	$ 17,331
Trademarks and trade names
Finite-Lived Intangible Assets [Line Items]
Weighted- Average Remaining Amortization Period	4 years 6 months	2 years 9 months 18 days
Gross Carrying Amount	$ 30,639	$ 6,537
Accumulated Amortization	(5,952)	(1,123)
Net	$ 24,687	$ 5,414
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Weighted- Average Remaining Amortization Period	3 years 3 months 18 days	4 years 3 months 18 days
Gross Carrying Amount	$ 99,728	$ 106,836
Accumulated Amortization	(33,526)	(14,660)
Net	$ 66,202	$ 92,176

Intangible Assets and Goodwill - Amortization Expense (Details) $ in Thousands	Dec. 31, 2021 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2022	$ 115,359
2023	107,128
2024	98,584
2025	69,141
2026	$ 57,148

Intangible Assets and Goodwill - Goodwill (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Goodwill [Roll Forward]
Balance at beginning of period	$ 569,603
Goodwill resulting from acquisitions	63,188
Cumulative translation adjustment	(17,136)
Balance at end of period	615,655	$ 569,603
Impairment of goodwill	0	0	$ 0
B2c Units
Goodwill [Roll Forward]
Balance at beginning of period	353,083
Goodwill resulting from acquisitions	7,673
Cumulative translation adjustment	0
Balance at end of period	360,756	353,083
B2b Units
Goodwill [Roll Forward]
Balance at beginning of period	216,520
Goodwill resulting from acquisitions	8,300
Cumulative translation adjustment	(17,136)
Balance at end of period	207,684	216,520
Media
Goodwill [Roll Forward]
Balance at beginning of period	0
Goodwill resulting from acquisitions	47,215
Cumulative translation adjustment	0
Balance at end of period	$ 47,215	$ 0

Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Accounts Payable and Accrued Liabilities, Current [Abstract]
Accounts payable	$ 52,537	$ 28,076
Accrued compensation and related expenses	63,803	48,449
Accrued marketing	55,275	51,436
Accrued professional fees	18,400	10,640
Accrued operating taxes	50,813	19,509
Accrued partnership fees	72,736	21,112
Accrued other expenses	74,173	44,411
Total	$ 387,737	$ 223,633

Current and Long-term Liabilities - Revolving Line of Credit (Details) - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2021	Dec. 31, 2020
Revolving Credit Facility
Revolving Line of Credit
Maximum borrowing capacity		$ 60.0	$ 60.0
Principal amount outstanding		0.0	0.0
Net facility available		$ 55.8	$ 55.8
Revolving Credit Facility \| Prime rate
Revolving Line of Credit
Variable interest rate spread	1.00%
Variable annual interest rate floor	6.50%
Quarterly in arrears fee per annum	0.25%
Revolving Credit Facility
Revolving Line of Credit
Maximum borrowing capacity	$ 60.0

Current and Long-term Liabilities - Indirect Taxes and Convertible Notes (Details) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended
	Mar. 31, 2021 USD ($) $ / shares	Mar. 31, 2021 USD ($) $ / shares	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Line of Credit Facility [Line Items]
Convertible notes, net of issuance costs			$ 1,248,452	$ 0
Estimated liability for indirect taxes			47,500	$ 45,900
Convertible Notes
Line of Credit Facility [Line Items]
Aggregate principle amount	$ 1,265,000	$ 1,265,000
Lender fees	17,000	17,000
Debt financing costs	$ 1,700	$ 1,700
Conversion ratio	0.010543
Conversion price (in dollars per share) \| $ / shares	$ 94.85	$ 94.85
Strike price (in dollars per share) \| $ / shares	94.85	94.85
Cap price (in dollars per share) \| $ / shares	$ 135.50	$ 135.50
Net costs incurred		$ 124,000
Convertible notes, net of issuance costs			1,248,500
Debt issuance costs			16,500
Fair value of convertible notes			$ 953,800

Current and Long-term Liabilities - Warrant Liabilities (Details) - USD ($) $ / shares in Units, $ in Thousands		12 Months Ended
	May 14, 2019	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Liabilities, Other than Long-term Debt, Noncurrent [Abstract]
Number of warrants issued (in shares)	13,300,000
Number of shares issuable per warrant (in shares)	6,300,000
Warrant liabilities		$ 26,911	$ 65,444
(Gain) loss on remeasurement of warrant liabilities		(30,065)	387,565	$ 0
Shares issued for exercise of warrants		$ 9,205	$ 649,132
Public Warrants
Liabilities, Other than Long-term Debt, Noncurrent [Abstract]
Number of warrants issued (in shares)	13,300,000
Number of shares issuable per warrant (in shares)	1
Price per warrant (in dollars per share)	$ 11.50
Number of warrants outstanding (in shares)		0
Private Warrants
Liabilities, Other than Long-term Debt, Noncurrent [Abstract]
Number of warrants issued (in shares)	6,300,000
Price per warrant (in dollars per share)	$ 11.50
Number of warrants outstanding (in shares)		1,600,000
Shares issued for exercise of warrants (in shares)		300,000	17,700,000
Shares issued for exercise of warrants		$ 9,200	$ 649,100
Warrant liability reclassification		8,500	447,100
Warrant exercise proceeds		700	202,000
Level 1 and Level 2 warrants
Liabilities, Other than Long-term Debt, Noncurrent [Abstract]
(Gain) loss on remeasurement of warrant liabilities		$ (30,100)	$ 387,600

Fair Value Measurements (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Liabilities [Abstract]
Option price (in dollars per share)	$ 9.77
Unrealized gains	$ 6,100
Level 1
Liabilities [Abstract]
Shares part of the marketable equity securities	2,500,000
Fair Value, Recurring
Assets [Abstract]
Equity securities	$ 27,200
Put options in Vivid Seats	3,850
Assets	581,219
Liabilities [Abstract]
Private warrants	26,911	$ 65,444
Liabilities	26,911	65,444
Fair Value, Recurring \| Level 1
Assets [Abstract]
Equity securities	27,200
Put options in Vivid Seats	0
Assets	577,369
Liabilities [Abstract]
Private warrants	0	0
Liabilities	0	0
Fair Value, Recurring \| Level 2
Assets [Abstract]
Equity securities	0
Put options in Vivid Seats	0
Assets	0
Liabilities [Abstract]
Private warrants	26,911	65,444
Liabilities	26,911	65,444
Fair Value, Recurring \| Level 3
Assets [Abstract]
Equity securities	0
Put options in Vivid Seats	3,850
Assets	3,850
Liabilities [Abstract]
Private warrants	0	0
Liabilities	0	$ 0
Money Market Funds \| Fair Value, Recurring
Assets [Abstract]
Cash equivalents	550,169
Money Market Funds \| Fair Value, Recurring \| Level 1
Assets [Abstract]
Cash equivalents	550,169
Money Market Funds \| Fair Value, Recurring \| Level 2
Assets [Abstract]
Cash equivalents	0
Money Market Funds \| Fair Value, Recurring \| Level 3
Assets [Abstract]
Cash equivalents	$ 0

Fair Value Measurements - Fair Value Assumptions (Details)	Dec. 31, 2021 $ / shares
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Option price (in dollars per share)	$ 9.77
Level 3 \| Stock price
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Measurement input	10.88
Option price (in dollars per share)	$ 9.77
Level 3 \| Volatility
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Measurement input	0.600
Level 3 \| Risk-free rate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Measurement input	0.003
Level 3 \| Dividend yield
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Measurement input	0.000
Level 3 \| Term to repurchase date
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Measurement input	0.71

Stockholders' Equity (Deficit) (Details) $ / shares in Units, $ in Thousands	1 Months Ended		12 Months Ended
	Oct. 31, 2020 USD ($)	Jun. 30, 2020 USD ($)	Dec. 31, 2021 USD ($) $ / shares shares	Dec. 31, 2020 USD ($) vote $ / shares shares	Dec. 31, 2019 USD ($)
Class of Stock [Line Items]
DEAC shares recapitalized, net of transaction costs				$ 542,334
Transaction costs in relation to DEAC recapitalized shares				10,631
Buyout of unaccredited investors			$ 0	7,192	$ 0
Common stock issued				1,680,067	439
Proceeds from issuance of Class A common stock, net of issuance costs			$ 0	$ 1,680,067	$ 439
Preferred stock, shares authorized (in shares) \| shares			300,000,000.0
Preferred stock, par value (in dollars per share) \| $ / shares			$ 0.0001
Preferred stock, shares issued (in shares) \| shares			0	0
Preferred stock, shares outstanding (in shares) \| shares			0	0
Chief Executive Officer
Class of Stock [Line Items]
Number of votes per share \| vote				10
Voting power of the capital stock held				90.00%
Principal amount of debt converted to equity securities				$ 109,200
Unpaid accrued interest related to debt converted to equity securities				$ 3,400
Share Price \| $ / shares				$ 10
Class A Common Stock
Class of Stock [Line Items]
DEAC shares recapitalized, net of transaction costs				$ 542,300
Transaction costs in relation to DEAC recapitalized shares				$ 10,600
Common stock issued	$ 20,800	$ 16,000
Proceeds from issuance of Class A common stock, net of issuance costs	$ 1,059,300	$ 620,800
Class A Common Stock \| Convertible Notes
Class of Stock [Line Items]
Number of shares of common stock issued in conversion of debt (in shares) \| shares				11,300,000
Class B Common Stock \| Chief Executive Officer
Class of Stock [Line Items]
Common stock issued (in shares) \| shares				393,000,000.0
SB Tech
Class of Stock [Line Items]
Recapitalization exchange ratio					0.353628
Cash and other cash consideration				$ 188,300
Buyout of unaccredited investors				7,200
Net cash proceeds				$ 484,000
SB Tech \| Series F Preferred Stock
Class of Stock [Line Items]
Share conversion factor					1.40
SB Tech \| Class A Common Stock
Class of Stock [Line Items]
Recapitalization exchange ratio					0.353628

Revenue Recognition - Deferred Revenue (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Revenue from Contract with Customer [Abstract]
Deferred revenue, beginning of the period	$ 30,627	$ 20,760
Deferred revenue, end of the period	91,554	30,627
Revenue recognized in the period from amounts included in deferred revenue at the beginning of the period	$ 28,319	$ 11,221

Revenue Recognition - Revenue Disaggregation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Disaggregation of Revenue [Line Items]
Total Revenue	$ 1,296,025	$ 614,532	$ 323,410
Online gaming
Disaggregation of Revenue [Line Items]
Total Revenue	1,145,539	517,632	308,177
Gaming software
Disaggregation of Revenue [Line Items]
Total Revenue	97,415	75,629	0
Other
Disaggregation of Revenue [Line Items]
Total Revenue	$ 53,071	$ 21,271	$ 15,233

- Definition

Amount, including tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value-added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130545-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8906-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
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-Section 50
-Paragraph 4
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130543-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 924
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-URI http://asc.fasb.org/extlink&oid=6472922&loc=d3e499488-122856

+ Details

Revenue Recognition - Revenue by Geographic region (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Total Revenue	$ 1,296,025	$ 614,532	$ 323,410
United States
Total Revenue	1,198,748	544,463	318,144
International
Total Revenue	$ 97,277	$ 70,069	$ 5,266

- Definition

+ References

+ Details

Stock-Based Compensation - Narrative (Details) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2021 USD ($) segment $ / shares shares	Dec. 31, 2020 USD ($) $ / shares	Dec. 31, 2019 USD ($) $ / shares	Dec. 31, 2017 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Proceeds from exercise of stock options	$ 31,479	$ 27,587	$ 1,148
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Contractual term	7 years
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Contractual term	10 years
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of types of stock based compensation \| segment	3
Unrecognized stock-based compensation	$ 742,000
Recognition period for unrecognized share-based compensation	1 year 9 months 18 days
Weighted average grant date fair value per share (in dollars per share) \| $ / shares	$ 19.53	$ 2,000.00	$ 2,000.00
Proceeds from exercise of stock options	$ 31,500	$ 27,600	$ 1,100
Aggregate intrinsic value of stock options exercised	473,400	1,256,000	3,400
Grant date fair value of stock options vested	$ 14,000	$ 35,100	$ 9,800
Performance Shares \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award fiscal years	1 year
Performance Shares \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award fiscal years	2 years
2017 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of share awards issued (in shares) \| shares				0
2012 Plan and 2017 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for issuance (in shares) \| shares	10,400,000
2020 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for issuance (in shares) \| shares	44,500,000
Aggregate number of shares not to be exceeded (in shares) \| shares	900,000,000
2012 Plan and 2017 Plan and 2020 Plan \| Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Contractual term	10 years
Vesting period	4 years

Stock-Based Compensation - Valuation Assumptions (Details)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Risk-free rate	1.10%	0.40%	2.00%
Term to repurchase date (in years)	5 years 9 months 18 days	6 years 1 month 6 days	6 years
Volatility	43.00%	42.50%	41.50%
Dividend yield	0.00%	0.00%	0.00%
Grants with market based conditions
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Risk-free rate	1.70%
Volatility	38.90%
Dividend yield	0.00%

Stock-Based Compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Number of shares
Number of shares outstanding, beginning of period (in shares)	54,651	48,026
Number of shares granted (in shares)	10,910	37,858
Number of shares exercised (in shares)	(10,944)	(30,603)
Number of shares forfeited (in shares)	(871)	(630)
Number of shares outstanding, end of period (in shares)	53,746	54,651	48,026
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Stock options exercisable, outstanding (in shares)	25,276
Stock options expected to vest, outstanding (in shares)	3,444
Stock options exercisable, weighted average remaining term of options	6 years 1 month 17 days
Stock options expected to vest, weighted average remaining term of options	7 years 10 months 13 days
Stock options exercisable, aggregate intrinsic value	$ 605,212
Stock options expected to vest, aggregate intrinsic value	$ 56,896
Stock options exercisable, weighted average exercise price of options (in dollars per share)	$ 3.86
Stock options expected to vest, weighted average exercise price of options (in dollars per share)	17.05
Stock Options
Weighted average exercise price
Weighted average exercise price outstanding, beginning of period (in dollars per share)	3.57	$ 2.86
Weighted average exercise price granted (in dollars per share)	50.60	4.11
Weighted average exercise price exercised (in dollars per share)	3.33	1.28
Weighted average exercise price forfeited (in dollars per share)	4.30	5.24
Weighted average exercise price outstanding, end of period (in dollars per share)	$ 5.46	$ 3.57	$ 2.86
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Weighted Average Remaining Term of Options (Years)	6 years 4 months 2 days	7 years 18 days	7 years 7 months 20 days
Aggregate Intrinsic Value of Options	$ 662,108	$ 1,607,562	$ 203,431
Time Based Options
Number of shares
Number of shares outstanding, beginning of period (in shares)	20,519	27,853
Number of shares granted (in shares)	1,100	4,781
Number of shares exercised (in shares)	(6,571)	(11,621)
Number of shares forfeited (in shares)	(353)	(494)
Number of shares outstanding, end of period (in shares)	14,695	20,519	27,853
Time Based Restricted Stock Units
Number of shares
Number of shares outstanding, beginning of period (in shares)	3,548	0
Number of shares granted (in shares)	2,466	3,816
Number of shares exercised (in shares)	(1,523)	(149)
Number of shares forfeited (in shares)	(296)	(119)
Number of shares outstanding, end of period (in shares)	4,195	3,548	0
PSP Options
Number of shares
Number of shares outstanding, beginning of period (in shares)	3,023	3,972
Number of shares granted (in shares)	0	0
Number of shares exercised (in shares)	(667)	(932)
Number of shares forfeited (in shares)	(2)	(17)
Number of shares outstanding, end of period (in shares)	2,354	3,023	3,972
PSP RSUs
Number of shares
Number of shares outstanding, beginning of period (in shares)	907	0
Number of shares granted (in shares)	600	907
Number of shares exercised (in shares)	0	0
Number of shares forfeited (in shares)	(19)	0
Number of shares outstanding, end of period (in shares)	1,488	907	0
LTIP Options
Number of shares
Number of shares outstanding, beginning of period (in shares)	13,854	16,201
Number of shares granted (in shares)	0	0
Number of shares exercised (in shares)	(2,183)	(2,347)
Number of shares forfeited (in shares)	0	0
Number of shares outstanding, end of period (in shares)	11,671	13,854	16,201
LTIP RSUs
Number of shares
Number of shares outstanding, beginning of period (in shares)	12,800	0
Number of shares granted (in shares)	6,744	28,354
Number of shares exercised (in shares)	0	(15,554)
Number of shares forfeited (in shares)	(201)	0
Number of shares outstanding, end of period (in shares)	19,343	12,800	0
Restricted Stock Units (RSUs)
Weighted average exercise price
Weighted average exercise price outstanding, beginning of period (in dollars per share)	$ 47.01	$ 0
Weighted average exercise price granted (in dollars per share)	52.97	34.63
Weighted average exercise price exercised (in dollars per share)	37.64	21.03
Weighted average exercise price forfeited (in dollars per share)	44.20	33.72
Weighted average exercise price outstanding, end of period (in dollars per share)	$ 49.94	$ 47.01	$ 0

Stock-Based Compensation - Stock compensation expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock compensation expense, Options	$ 14,654	$ 27,361	$ 17,613
Stock compensation expense, RSU	668,639	297,677	0
Share-based compensation expense	683,293	325,038	17,613
Time Based
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock compensation expense, Options	14,654	8,176	7,065
Stock compensation expense, RSU	61,085	21,286	0
Share-based compensation expense	75,739	29,462	7,065
Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock compensation expense, Options	0	1,633	5,222
Stock compensation expense, RSU	82,089	21,275	0
Share-based compensation expense	82,089	22,908	5,222
LTIP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock compensation expense, Options	0	9,552	5,326
Stock compensation expense, RSU	525,465	255,116	0
Share-based compensation expense	525,465	264,668	5,326
B Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock compensation expense, Options	0	8,000	0
Stock compensation expense, RSU	0	0	0
Share-based compensation expense	$ 0	$ 8,000	$ 0

Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Loss before provision for (benefit from) income taxes:
United States	$ (1,391,154)	$ (1,168,482)	$ (142,198)
Foreign	(126,490)	(63,409)	1
Loss before income tax (benefit) provision	(1,517,644)	(1,231,891)	(142,197)
Current:
Federal	90	(49)	0
State	514	250	0
Foreign	23,174	1,456	4
Total current provision	23,778	1,657	4
Deferred:
Federal	(5,523)	(442)	0
State	(2,075)	31	54
Foreign	(7,911)	(1,868)	0
Total deferred provision	(15,509)	(2,279)	54
Total income tax provision (benefit)	$ 8,269	$ (622)	$ 58

Income Taxes - Reconciliation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Effective Income Tax Rate Reconciliation, Amount [Abstract]
Benefit for income taxes at 21% rate	$ (318,705)	$ (258,697)	$ (29,863)
Prior year provision true-ups	(16,878)	(5)	3,164
State taxes, net of federal benefit	(142,119)	(13,328)	(7,522)
Internal restructurings	(167,692)	0	0
Stock-based compensation (benefit) expense	(70,150)	(190,766)	2,412
Non-deductible lobbying expenses	9,938	2,072	1,885
Non-deductible acquisition expenses	455	4,041	2,068
Change in valuation allowance	575,225	243,352	19,988
Net operating loss write-off	0	998	7,246
Non-deductible executive compensation	117,849	118,423	0
(Gain) loss on remeasurement of warrant liabilities	(6,301)	81,388	0
Foreign rate differential	16,588	13,456	0
Foreign currency adjustments	8,265	(2,086)	0
Income tax reserves	5,098	1,676	0
Other	(3,304)	(1,146)	680
Total income tax provision (benefit)	$ 8,269	$ (622)	$ 58

Income Taxes - Deferred Taxes (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Deferred tax assets:
Net operating loss carryforwards	$ 778,989	$ 459,508
Intangible assets	163,242	0
Accrual and other temporary differences	42,381	19,432
Operating lease	17,141	15,002
Stock-based compensation	88,650	8,618
Gross deferred tax assets	1,090,403	502,560
Valuation allowance	(1,053,892)	(478,667)
Net deferred tax assets	36,511	23,893
Deferred tax liability:
Capitalized software costs	(12,724)	(8,469)
Fixed assets	(554)	(1,351)
Operating lease	(15,581)	(11,251)
Other deferred tax liabilities	(221)	0
Total net deferred tax assets	$ 7,431	$ 2,822

Income Taxes - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
Income Taxes - Narrative (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Operating Loss Carryforwards [Line Items]
Increase in valuation allowance	$ 575.2
Foreign earnings for indefinite reinvestment	9.7
Interest and penalties expense	5.0	$ 1.7	$ 0.0
Interest and penalties accrued	6.7	$ 1.7	$ 0.0
Federal
Operating Loss Carryforwards [Line Items]
Operating loss carryforward	2,722.0
Operating loss carryforward, subject to expiration	676.2
Operating loss carryforward, not subject to expiration	2,045.8
State
Operating Loss Carryforwards [Line Items]
Operating loss carryforward	2,996.0
Operating loss carryforward, subject to expiration	2,875.3
Operating loss carryforward, not subject to expiration	$ 120.7

Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Unrecognized tax benefits at the beginning of the year	$ 70,341	$ 0	$ 0
Additions for tax positions of prior years	0	70,341	0
Foreign currency adjustments	2,066	0	0
Unrecognized tax benefits at the end of the year	$ 72,407	$ 70,341	$ 0

Segment Information (Details) $ in Thousands	12 Months Ended
Segment Information (Details) $ in Thousands	Dec. 31, 2021 USD ($) segment	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)
Segment Reporting Information [Line Items]
Number of operating segments \| segment	2
Number of reportable segments \| segment	2
Segment Reporting Information, Profit (Loss) [Abstract]
Total Revenue	$ 1,296,025	$ 614,532	$ 323,410
Total adjusted EBITDA	(676,133)	(391,919)	(98,640)
Depreciation and amortization	121,138	77,410	13,636
Interest expense (income), net	(1,957)	1,070	(1,348)
Income tax (benefit) provision	8,269	(622)	58
Stock-based compensation	683,293	325,038	17,613
Transaction-related costs	25,316	36,406	10,472
Litigation, settlement and related costs	10,392	6,839	3,695
Advocacy and other related legal expenses	40,415	0	0
(Gain) loss on remeasurement of warrant liabilities	(30,065)	387,565	0
Other non-recurring, special project and non-operating (income) costs	(9,739)	6,210	(32)
Net loss	(1,523,195)	(1,231,835)	(142,734)
B2C
Segment Reporting Information, Profit (Loss) [Abstract]
Total Revenue	1,198,610	538,903	323,410
Total adjusted EBITDA	(654,432)	(393,461)	(98,640)
B2B
Segment Reporting Information, Profit (Loss) [Abstract]
Total Revenue	97,415	75,629	0
Total adjusted EBITDA	$ (21,701)	$ 1,542	$ 0

Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Earnings Per Share [Abstract]
Net loss	$ (1,523,195)	$ (1,231,835)	$ (142,734)
Weighted-average common shares outstanding, Diluted (in shares)	402,492	305,593	184,603
Weighted-average common shares outstanding, Basic (in shares)	402,492	305,593	184,603
Loss per share attributable to common shareholders:
Basic (in dollars per share)	$ (3.78)	$ (4.03)	$ (0.77)
Diluted (in dollars per share)	$ (3.78)	$ (4.03)	$ (0.77)

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

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- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

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+ Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

Loss Per Share - Diluted shares outstanding (Details) - shares shares in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	68,696	56,712	55,617
Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	1,613	2,061	182
Stock options and RSUs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	53,746	54,651	48,026
Convertible notes
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	13,337	0	7,409

Related-Party Transactions (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Jan. 31, 2019	Jul. 31, 2015
Related Party Transaction [Line Items]
Total administrative services expenses	$ 2.5	$ 12.3	$ 0.0
Revenue from related parties	4.5	2.7
Shareholders and Directors
Related Party Transaction [Line Items]
Receivables from shareholders and directors	3.8	1.9
SB Tech
Related Party Transaction [Line Items]
Accounts receivable	0.2	0.5
Additional Paid in Capital
Related Party Transaction [Line Items]
Total administrative services expenses	7.0
Media Purchase Agreement
Related Party Transaction [Line Items]
Annual commitment				$ 5.0	$ 15.0
Additional contingent commitment					$ 5.0
Total commitment				$ 15.0
Sales and marketing expenses from related party transaction	0.0	25.8	$ 8.4
Equity Method Investee
Related Party Transaction [Line Items]
Receivables from equity method affiliate	$ 0.6	$ 1.1

Leases, Commitments and Contingencies - Narrative (Details) $ in Millions	Nov. 06, 2020 item	Oct. 21, 2019 claim	Jun. 14, 2019 patent	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Property, Plant and Equipment [Line Items]
Lease obligations				$ 33.7
Operating lease term not commenced yet				11 years
United States
Property, Plant and Equipment [Line Items]
Long-lived assets				$ 77.2	$ 68.9
International
Property, Plant and Equipment [Line Items]
Long-lived assets				32.6	40.1
Letter of Credit \| Pacific Western Bank
Property, Plant and Equipment [Line Items]
Letters of credit				$ 4.2	$ 4.2
Mass Arbitration Demands Filed by One Law Firm
Property, Plant and Equipment [Line Items]
Number of cases \| claim		1,000
Number of individuals filed against the company \| item	999
Interactive Games LLC \| Daily Fantasy Sports
Property, Plant and Equipment [Line Items]
Number of patents allegedly infringed \| patent			2
Interactive Games LLC \| Sportsbook product
Property, Plant and Equipment [Line Items]
Number of patents allegedly infringed \| patent			2
Maximum
Property, Plant and Equipment [Line Items]
Term of contract				10 years

Leases, Commitments and Contingencies - Components of Lease Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
Operating lease cost	$ 16,551	$ 14,968
Short term lease cost	3,273	2,538
Variable lease cost	4,261	3,652
Sublease income	(774)	(1,382)
Total lease cost	$ 23,311	$ 19,776

Leases, Commitments and Contingencies - Other Information Related to Leases (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 17,162	$ 11,586
Right-of-use assets obtained in exchange for new operating lease liabilities	$ 3,329	$ 42,673
Weighted-average remaining lease term, Operating leases	5 years 9 months 18 days
Weighted-average discount rate, Operating leases	6.50%

Leases, Commitments and Contingencies - Maturity of Lease Liabilities (Details) $ in Thousands	Dec. 31, 2021 USD ($)
Lessee, Operating Lease, Liability, Payment, Due [Abstract]
2022	$ 16,593
2023	15,518
2024	13,018
2025	11,277
2026	9,855
Thereafter	18,340
Total undiscounted future cash flows	84,600
Less: Imputed interest	(14,445)
Present value of undiscounted future cash flows	$ 70,155

Leases, Commitments and Contingencies - Future Minimum Payments Under the Non-Cancelable (Details) $ in Thousands	Dec. 31, 2021 USD ($)
Commitments and Contingencies Disclosure [Abstract]
2022	$ 404,300
2023	384,029
2024	326,418
2025	277,186
2026	165,414
Thereafter	336,905
Total	$ 1,894,252