0001104659-20-111952 | S-1 | XBRL Viewer

Property and Equipment

4.Property and Equipment

Property and equipment, net consists of the following:


	June 30, 2020		December 31, 2019
Computer equipment and software	$	19,676	$	9,685
Furniture and fixtures		7,540		5,891
Leasehold improvements		20,558		17,373
Property and Equipment		47,774		32,949
Accumulated depreciation		(10,772)		(7,004)
Property and Equipment, net	$	37,002	$	25,945

During the three and six months ended June 30, 2020, the Company recorded depreciation expense on property and equipment of $2,296 and $3,740, respectively. Depreciation expense on property and equipment was $1,149 and $1,976 for the three and six months ended June 30, 2019, respectively.

3. Property and Equipment

Property and equipment, net consists of the following:


	December 31,
	2019		2018
Computer equipment and software	$	9,685	$	5,537
Furniture and fixtures		5,891		4,018
Leasehold improvements		17,373		7,924
Property and Equipment		32,949		17,479
Accumulated depreciation		(7,004)		(3,377)
Property and Equipment, net	$	25,945	$	14,102

Depreciation expense on property and equipment was $4,131, $1,185 and $1,934 during the years ended December 31, 2019, 2018 and 2017, respectively.

In 2019, the Company disposed of furniture and fixtures that were no longer in use. The loss on disposal of fixed assets for the year ended December 31, 2019, 2018 and 2017 totaled $730, $0, and $185, respectively.

Intangible Assets and Goodwill

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

Intangible Assets and Goodwill

5.Intangible Assets and Goodwill

Intangible Assets

The Company has the following intangible assets, net at June 30, 2020:


	Weighted-
	Average
	Remaining	Gross
	Amortization	Carrying		Accumulated
	Period	Amount		Amortization		Net
Developed Technology	7.82 years	$	407,680	$	(9,484)	$	398,196
Internally developed software	2.37 years		55,109		(26,419)		28,690
Gaming Licenses	4.62 years		19,138		(1,944)		17,194
Trademarks and tradenames	2.82 years		4,480		(278)		4,202
Customer relationships	4.82 years		97,440		(3,627)		93,813
Intangible Assets, net		$	583,847	$	(41,752)	$	542,095

The Company has the following intangible assets, net at December 31, 2019:


	Weighted-
	Average
	Remaining	Gross
	Amortization	Carrying		Accumulated
	Period	Amount		Amortization		Net
Internally developed software	2.35 years	$	43,753	$	(21,188)	$	22,565
Gaming Licenses	4.86 years		12,003		(629)		11,374
Intangible Assets, net		$	55,756	$	(21,817)	$	33,939

Amortization expense was $16,372 and $19,632 for the three and six months ended June 30, 2020 and $2,125 and $4,223 for the three and six months ended June 30, 2019, respectively.

Goodwill

The changes in the carrying amount of goodwill for the six months ended June 30, 2020 by segment (refer to Note 12 for segment definitions) are:


	B2C		B2B		Total
Balance as of December 31, 2019	$	4,738	$	—	$	4,738
Goodwill acquired in SBTech Acquisition*		348,345		122,600		470,945
Currency Translation Adjustment		—		4,895		4,895
Balance as of June 30, 2020	$	353,083	$	127,495	$	480,578

* = Preliminary allocation

4. Intangible Assets and Goodwill

The Company has the following intangible assets, net at December 31, 2019:


	Weighted-
	Average	Gross
	Amortization	Carrying		Accumulated
	Period	Amount		Amortization		Net
User relationships	—	$	3,328	$	(3,328)	$	—
Internally developed software	2.35 years		43,753		(21,188)		22,565
State licenses	4.86 years		12,003		(629)		11,374
Intangible Assets, net		$	59,084	$	(25,145)	$	33,939

The Company has the following intangible assets, net at December 31, 2018:


	Weighted-
	Average	Gross
	Amortization	Carrying		Accumulated
	Period	Amount		Amortization		Net
User relationships	0.5 years	$	3,328	$	(3,013)	$	315
Internally developed software	2.45 years		28,937		(12,572)		16,365
State licenses	0.75 years		251		(55)		196
Intangible Assets, net		$	32,516	$	(15,640)	$	16,876

The Company recorded amortization expense of $9,505, $6,314 and $4,367 for the years ended December 31, 2019, 2018 and 2017, respectively.

At December 31, 2019, estimated future amortization of intangible assets is as follows:


Year ending December 31,
2020	$	13,048
2021		10,250
2022		6,241
2023		2,200
2024 and thereafter		2,200
Total	$	33,939

Goodwill

The changes in the carrying amount of goodwill for the years ended December 31, 2019 and 2018 are as follows:


Balance as of December 31, 2017	$	4,399
Goodwill acquired		339
Balance as of December 31, 2018	$	4,738
Goodwill acquired		—
Balance as of December 31, 2019	$	4,738

The Company recorded an increase of $339 to goodwill in connection with an immaterial acquisition during the year ended December 31, 2018. No impairment of goodwill was recorded in the years ended December 31, 2019, 2018 and 2017.

Accounts Payable and Accrued Expenses

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

Accounts Payable and Accrued Expenses.

Accounts Payable and Accrued Expenses

6.Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses consist of the following:


	June 30, 2020		December 31, 2019
Accounts payable	$	32,312	$	16,618
Accrued compensation and related expenses		18,432		17,770
Accrued marketing		22,681		11,855
Accrued professional fees		9,414		10,344
Accrued other expenses		40,107		28,708
Total	$	122,946	$	85,295

5. Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses consist of the following:


	December 31,
	2019		2018
Accounts payable	$	16,618	$	11,626
Accrued payroll and related expenses		17,770		9,857
Accrued litigation, lobbying and compliance		6,153		5,566
Accrued loyalty points		4,131		7,272
Accrued marketing fees		11,855		3,237
Accrued operating taxes		5,745		2,741
Accrued partnership fees		7,868		4,340
Accrued professional fees		4,191		1,978
Accrued software and licenses		1,589		2,263
Accrued other		9,375		7,269
Total	$	85,295	$	56,149

Current and Long-term Liabilities	6 Months Ended	12 Months Ended
Current and Long-term Liabilities	Jun. 30, 2020	Dec. 31, 2019
Current and Long-term Liabilities
Current and Long-term Liabilities	7.Current and Long-term Liabilities Indirect Taxes Taxation of e-commerce is becoming more prevalent and could negatively affect the Company’s business 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 June 30, 2020, and December 31, 2019, the Company’s estimated contingent liability for indirect taxes was $40,907 and $35,899, respectively. This is recorded within other long-term liabilities on the condensed consolidated balance sheets and general and administrative expenses in the condensed consolidated statements of operations. Deferred Rent In conjunction with certain leased office facilities, the Company has received cash payments from landlords to fund tenant directed leasehold improvements. These payments are recorded as deferred rent and reported in accounts payable and accrued expenses and other long-term liabilities within the condensed consolidated balance sheets. These amounts are released ratably over the lease term, with an offset to rent expense. For the six months ended June 30, 2020, rent expense has been reduced by $82 due to the release of deferred rent liabilities. At June 30, 2020, the short-term and long-term deferred rent liabilities were $1,156 and $9,634, respectively. At December 31, 2019, the short-term and long-term deferred rent liabilities were $1,125 and $9,747, respectively.	6. Current and Long-term Liabilities Term Note 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 August 2019 (as amended, the “Credit Agreement”). The Credit Agreement provides a revolving line of credit of up to $50,000. The Credit Agreement has a maturity date of September 15, 2020. As of December 31, 2019 and 2018, the Credit Agreement provided a revolving line of credit of up to $50,000 and $40,000, respectively. Principal amounts outstanding under the Credit Agreement totaled $6,750 and $3,750 as of December 31, 2019 and 2018, respectively. Net facility available from the Credit Agreement as of December 31, 2019 and 2018 totaled $38,769 and $31,769, respectively, which exclude the letters of credit outlined in Note 13. 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. Upon the earlier of (i) an Acquisition, as defined in the Credit Agreement, or (ii) the closing of an initial public offering, in either case, the Company will also be required to pay a success fee to Pacific Western Bank in the amount of $600 or $650 if the outstanding principal amount exceeds $45,000 at any time. As of December 31, 2019, the Company did not meet all financial and non-financial covenants per the Credit Agreement; however, the Company has received waivers from Pacific Western Bank for all covenants not met. Borrowings under the Credit Agreement are secured by a first lien on all issued and outstanding shares of capital stock of the Company’s subsidiaries (except for any foreign subsidiaries, for which 65% of such capital stock is pledged) and on all assets, including intellectual property. Pursuant to the Credit Agreement, the Company is required to maintain substantially all depository, operating and investment accounts, excluding any proceeds from the Company’s gaming business, with Pacific Western Bank. The Company is also subject to certain affirmative and negative covenants until maturity. These covenants include limitations on the Company’s ability to incur additional indebtedness and to pay dividends. Obligations under the Credit Agreement are subject to acceleration upon the occurrence of specified events of default, including failure to comply with covenants. In connection with entering into the Credit Agreement, DraftKings issued a warrant to Pacific Western Bank to purchase 173,913 shares of its common stock at an exercise price of $0.23 per share. The warrant is immediately exercisable and expires in October 2020. Amounts outstanding, were recorded as current liabilities in the consolidated balance sheets as of December 31, 2019 and 2018. The interest rate in effect at December 31, 2019 and 2018 was 6.5%. The Company recorded interest expense of $258, $256 and $284 as of December 31, 2019, 2018 and 2017, respectively, which is included in interest income (expense), net on the consolidated statements of operations. The amount allocated to the warrants in October 2013 was recorded as a debt discount and was fully amortized as of December 31, 2017. The amount was recognized as interest expense over the term of the Credit Agreement using the effective interest method. Preferred Stock Investor in Series F Note On September 26, 2019, the Company entered into share redemption agreements with certain funds managed by Preferred Stock Investor in Series F (the “Preferred Stock Investor in Series F Funds”), pursuant to which the Company repurchased and redeemed shares of its preferred stock held by the Preferred Stock Investor in Series F Funds (the “Preferred Stock Investor in Series F Redemption”). A portion of the consideration paid by DraftKings in connection with the Preferred Stock Investor in Series F Redemption, equaling approximately $11,000, was paid by the issuance of promissory notes to certain of the Preferred Stock Investor in Series F Funds (the “Preferred Stock Investor in Series F Notes”). The Preferred Stock Investor in Series F Notes have a maturity date of the earlier of September 26, 2021 and the date on which DraftKings closes an equity financing with gross proceeds to DraftKings of at least $100 million. Until December 31, 2019, unpaid interest will accrue on the Preferred Stock Investor in Series F Notes at a rate of 2.33% per annum, computed on a basis of a 365-day year and payable annually in arrears. Following December 31, 2019, unpaid interest will accrue at a rate of 7.5% per annum, computed on a basis of a 365-day year and payable annually in arrears. Upon any event of default, as defined in the Preferred Stock Investor in Series F Notes, and at the option and upon the declaration of the holder thereof, the Preferred Stock Investor in Series F Notes will accelerate, and all principal and unpaid accrued interest will become due and payable. The Preferred Stock Investor in Series F Notes are subordinated to the Credit Agreement and any indebtedness or debentures, notes or other such indebtedness issued in exchange for the Credit Agreement, pursuant to a subordination agreement entered into by and among the relevant Preferred Stock Investor in Series F Funds, the Company and Pacific Western Bank, dated as of September 25, 2019. Indirect Taxes Taxation of e-commerce is becoming more prevalent and could negatively affect the Company’s business 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 taxation laws are complex and subject to differences in application and interpretation. Tax authorities may interpret laws originally enacted for mature industries and apply it to newer industries, such as the Company’s, and that application may be inconsistent from jurisdiction to jurisdiction. 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. Additionally, the Company’s jurisdictional activities may vary from period to period which could result in differences in nexus from period to period. Lastly, the Company’s estimated contingent liability for indirect taxes may be materially impacted by future indirect tax audit results, litigation and settlements, should they occur. As of December 31, 2019 and 2018, the Company’s estimated contingent liability for indirect taxes was $35,899, and $27,238, respectively. This is recorded within other long-term liabilities on the consolidated balance sheets and general and administrative expenses on the consolidated statements of operations. Deferred Rent In conjunction with its newly leased business facilities, the Company receives incentives from landlords for tenant owned leasehold improvements. These short-term and long-term amounts are recorded as deferred rent reported in the accounts payable and accrued expenses and other long-term liabilities sections of the consolidated balance sheet. These amounts are released ratably over the lease term, with an offset to current period lease expense. As of December 31, 2019, rent expense has been reduced by $377 due to the release of the deferred rent balance. Short-term and long-term balances of deferred rent are $1,125 and $9,747, respectively.

Stockholder's Equity	6 Months Ended	12 Months Ended
Stockholder's Equity	Jun. 30, 2020	Dec. 31, 2019
Stockholder's Equity
Stockholder's Equity	8.Stockholder’s Equity The condensed consolidated statements of change 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 and 2018 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 condensed 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 393,014 shares of Class B common stock to Jason Robins, the Chief Executive Officer of Old DK and of the Company, which converted into 393,014 shares of Class B common stock of the Company and which is recorded as stock-based compensation for the three and six months ended June 30, 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, they are excluded from the calculation of earnings per share of DraftKings. Upon the consummation of the Business Combination, the mandatory conversion feature was triggered for the Company’s convertible notes. All outstanding principal of $109,165 and unpaid accrued interest of $3,380 were collectively converted to equity securities at a $10 per share. The noteholders received 11,254 shares of Class A common stock in New DraftKings as result of the conversion. As part of the Business Combination $665,485 of Class A common stock and Additional Paid in Capital was recorded, net of transaction costs of $10,631, in relation to DEAC shares being recapitalized. The Company then used $186,477 as cash consideration in its acquisition of SBTech and $7,192 for the buyout of unaccredited investors. Net cash proceeds to the Company were $484,962. In June 2020, the Company issued 16,000 new shares of our Class A common stock in a public offering for net proceeds (net of underwriting fees) of $620,800. As of June 30, 2020, the Company had 300,000 shares authorized of preferred stock, $0.0001 par value, none of which were issued and outstanding as of June 30, 2020 or December 31, 2019.	9. Common Stock Per the Company’s Ninth Amended and Restated Certificate of Incorporation, the Company is authorized to issue 735,000 shares of $0.001 par value common stock. As of December 31, 2019 and 2018, 389,610 and 384,009 shares, respectively, of $0.001 par value common stock were issued and outstanding. Each share of common stock entitles the holder to one vote on all matters submitted to a vote of the Company’s stockholders. Common stockholders are entitled to receive dividends, if any, as may be declared by the board of directors, subject to the preferential dividend rights of the preferred stockholders. No dividends have been declared through December 31, 2019.

Revenue Recognition

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

9.Revenue Recognition

Deferred Revenue

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


	Three months ended June 30,				Six months ended June 30,
	2020		2019		2020		2019
Deferred revenue, beginning of the period	$	24,094	$	14,074	$	20,760	$	13,581
Deferred revenue, end of the period		24,759		13,280		24,759		13,280
Revenue recognized in the period from amounts included in deferred revenue at the beginning of the period		1,909		2,386		8,635		6,661

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. The Company included deferred revenue within accounts payable and accrued expenses and liabilities to users on the condensed consolidated balance sheets.

Revenue Disaggregation

Disaggregation of revenue for the three and six months ended June 30, 2020 and 2019 are as follows:


	Three months ended June 30,				Six Months ended June 30,
	2020		2019		2020		2019
Online gaming	$	55,409	$	56,112	$	139,114	$	121,402
Gaming software		14,954		—		14,954		—
Other		568		1,278		5,405		4,080
Total Revenue	$	70,931	$	57,390	$	159,473	$	125,482

Online gaming includes DFS, iGaming and Sportsbook which have similar attributes and pattern of recognition. Gaming software and Other also have similar attributes and pattern of recognition.

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


	Three months ended June 30,				Six months ended June 30,
	2020		2019		2020		2019
United States	$	56,577	$	55,120	$	147,387	$	122,290
International		14,354		2,270		12,086		3,192
Total Revenue	$	70,931	$	57,390	$	159,473	$	125,482

15. Revenue Recognition

On January 1, 2019, the Company adopted ASC 606 using the modified retrospective method and, due to the immaterial difference, there was no adjustment to the opening balance of accumulated deficit at January 1, 2019. The adoption of the New Revenue Standard did not have a material impact on the Company’s consolidated financial position, results of operations, or cash flows. The Company expects the impact of the adoption of the New Revenue Standard will be immaterial to net loss on an ongoing basis.

Deferred Revenue

Deferred revenue primarily represents contract liabilities for the Company’s obligation to transfer additional goods or services to users for which the Company has received consideration, such as wagers or entry fees on unscored events and unredeemed player rewards awarded for participation in DFS, Sportsbook and iGaming events. These create a liability when issued to users and are recognized as revenue when redeemed or settled. The Company included deferred revenue within accrued expenses and liabilities to users on the consolidated balance sheets. Deferred revenue was $20,760 and $13,581 as of December 31, 2019 and 2018, respectively, relating primarily to unredeemed player awards. The December 31, 2018 deferred revenue balance was recognized as revenue during 2019.

Revenue Disaggregation

The Company disaggregates revenue from contracts with customers in the following table which is intended to depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. Disaggregation of revenue for years ended December 31, 2019, 2018 and 2017 are as follows:


	Years Ended December 31,
	2019		2018(a)		2017(a)
Online Gaming(b)	$	308,177	$	219,131	$	189,779
Other		15,233		7,146		2,065
Total revenue	$	323,410	$	226,277	$	191,844

(a) As disclosed in Note 2, prior period amounts have not been adjusted under the modified retrospective method of adoption of Topic 606.

(b) Online Gaming includes DFS, iGaming and Sportsbook. These revenue streams have similar attributes and the same pattern of recognition.

Stock-Based Compensation

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

Stock-Based Compensation

10.Stock-Based Compensation

The Company, historically, has issued three types of stock-based compensation: Time-Based awards, Long Term Incentive Plan (“LTIP”) awards and Performance-Based Stock Compensation Plan (“PSP”) awards. Time-Based awards are options which generally vest over a 4-year period. 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 a particular fiscal year. LTIP awards generally vest when longer-term revenue, adjusted EBITDA or share price targets are achieved among other conditions while PSP awards generally vest upon achievement of revenue or adjusted EBITDA targets among other conditions. All stock-based compensation grants expire ten years after the grant date.

The following table shows stock option activity for the six months ended June 30, 2020 and 2019:


							Weighted-
					Weighted-		Average
					Average		Remaining	Aggregate
	Number of Options / RSU’s				Exercise		Term	Intrinsic
	Time Based	PSP (3)	LTIP (3)	Total	Price		(in Years)	Value
Outstanding at December 31, 2018	66,527	5,161	40,189	111,877	$	0.84	8.15	$	69,765
Recapitalization Impact	(43,003)	(3,336)	(25,978)	(72,317)		1.54	—		—
Outstanding at December 31, 2018	23,524	1,825	14,211	39,560		2.38	8.15		69,765
Granted	14,861	6,263	5,490	26,614		4.70
Exercised	(1,285)	(31)	—	(1,316)		0.96
Forfeited	(636)	(47)	—	(683)		3.32
Outstanding at June 30, 2019	36,464	8,010	19,701	64,175		2.82	8.11		90,252

Outstanding at December 31, 2019	78,772	11,233	45,817	135,822	$	1.01	7.64	$	203,431
Recapitalization Impact	(50,919)	(7,261)	(29,616)	(87,796)		1.85	—		—
Outstanding at December 31, 2019	27,853	3,972	16,201	48,026		2.86	7.64		203,431
Granted	4,331	—	15,070	19,401		0.61
Exercised	(2,732)	(520)	(603)	(3,855)		1.61
Forfeited	(656)	(4)	—	(660)		2.53
Outstanding at June 30, 2020	28,796	3,448	30,668	62,912	$	2.26	7.79	$	1,968,051

Vested and Expected to Vest as of June 30, 2020
Vested	21,147	3,448	15,599	40,194	$	2.72	6.91	$	1,225,735

Estimate of Expected to Vest(1)
2020(4)	1,966	—	5,100	7,066
2021	3,223	—	—	3,223
2022+(2)	2,110	—	9,280	11,390
	7,299	-	14,380	21,679	$	1.44	9.33	$	708,362

Effect of estimated forfeitures	350	—	689	1,039	$	1.56	9.53	$	33,953

(1)

Adjusted for estimated forfeitures.

(2)

Estimate does not consider future vesting based on share price targets, which may differ materially from the above estimates.

(3)

Performance based instruments.

(4)

For remainder of 2020 period.

As of June 30, 2020, total unrecognized stock-based compensation expense of $272,791 related to granted and unvested share-based compensation arrangements is expected to be recognized over a weighted-average period of 2.74 years. The following table shows stock compensation expense for the three and six months ended June 30, 2020 and 2019:


			Three Months Ended June 30,					Six Months Ended June 30,
		2020			2019		2020			2019
Time Based	$	1,712		$	1,844	$	3,346		$	3,611
PSP		—			—		1,633			3,064
LTIP (1)		44,774			—		46,349			—
B Shares (2)		8,000			—		8,000			—
Total	$	54,486		$	1,844	$	59,328		$	6,675

(1)

Resulting from achievement of share price targets and probability-based expensing.

(2)

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

10. 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. As of December 31, 2019 and 2018, the total number of shares available for issuance under the 2012 Plan were 5,614 and 12,313, respectively. Stock options are generally granted with an exercise price equal to the fair value of the common stock at the grant date, a graded vesting period of four years and a 10‑year contractual term. Incentive stock options may only be granted to employees and the exercise price shall not be less than the fair value of the stock on the grant date. If an employee owns more than 10% of the combined voting stock of the Company, the exercise price may not be less than 110% of the fair market value of the stock on the grant date. The Company only issued service-based vesting awards under the 2012 Plan.

In 2017, the Board approved the 2017 Equity Incentive Plan (the “2017 Plan” and, together with the 2012 Plan, the “Plans”). 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. As of December 31, 2019, the total number of shares available for issuance under the Plan was 75,671 shares. As of December 31, 2019, a share reserve established that the aggregate number of shares may not exceed 130,825 shares under the Plans. The exercise price of stock options issued under the 2017 Plan will generally not be less than 100% of the fair market value of the Company’s common stock on the date of grant, as determined by the board of directors. The Company issued service-based and performance-based vesting awards under the 2017 Plan. The service-based awards generally vest over a four-year period with graded vesting and expire no later than ten years from the date of grant. The Company issues two types of performance- based option awards pursuant to the 2017 Plan: Long Term Incentive Plan (“LTIP”) and Performance-Based Stock Compensation Plan (“PSP”).

The LTIP is a performance-based stock compensation plan that utilizes long-term financial metrics to incentivize key executives and align growth objectives between executives and the Company. The LTIP has vesting targets based on any one of the following thresholds related to annual revenue, annual earnings before interest, taxes, depreciation and amortization (“EBITDA”) or the fair value of the Company’s common stock in the event of an initial public offering, change in control or majority transaction, as defined per the LTIP.

The PSP is a short-term performance-based stock compensation plan. It was designed to incentivize key members of management and align short-term growth objectives related to the Company. PSP awards vest based on meeting both revenue and EBITDA targets.

As of December 31, 2019 and 2018, the Company has only issued stock options that are settled in the Company’s common stock. No restricted stock or other forms of equity-based awards have been issued.

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.

The expected term represents the period of time that the options are expected to be outstanding. The expected term is estimated using the midpoint between the requisite service period and the 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 for the years ended December 31:


	2019		2018
Risk free interest rate	1.95	%	2.80	%
Expected term (in years)	6.02		6.11
Expected volatility	41.48	%	41.98	%
Expected dividend yield	0	%	0	%

The weighted-average grant-date fair values of options granted during the years ended December 31, 2019 and 2018 were $0.72 and $0.54 per share, respectively. During the years ended December 31, 2019 and 2018, the Company received proceeds from the exercise of stock options of $1,148 and $552, respectively, and the aggregate intrinsic value of those stock options exercised was $3,406 and $2,234, respectively. The total grant date fair value of stock options that vested during the years ended December 31, 2019, 2018 and 2017 was $9,803, $7,334 and $3,351, respectively.

As of December 31, 2019, total unrecognized stock-based compensation expense of $19,769 related to unvested share-based compensation arrangements granted under the Plan is expected to be recognized over a weighted-average period of 2.03 years. Total stock-based compensation expense of $17,614, $7,210 and $4,500 was recognized for the years ended December 31, 2019, 2018 and 2017, respectively.

LTIP options

LTIP awards have been issued since November 2017 pursuant to the Company’s 2017 Plan. The fair value of each LTIP option is estimated on the grant date using the Black-Scholes option-pricing model for those awards, with only performance conditions and the assumptions noted in the table above. Awards that vest based on market conditions are valued using a Monte-Carlo model however no compensation cost will be recognized unless an IPO or liquidity event occurs. Awards vest based on a combination of factors, including achievement of revenue, EBITDA, and stock value targets measured upon an IPO or liquidity event. For the year ended December 31, 2019, the Company recognized compensation costs of $5,236 for LTIP awards. No compensation cost has been recognized for the LTIP for the year ended December 31, 2018 and 2017 because no awards were considered probable of vesting as of December 31, 2018 and 2017 as per the terms of the LTIP plan.

PSP options

PSP awards have been issued since November 2017 pursuant to the terms of the 2017 Plan. The Plan grants options to key executives that vest based on achievement of short-term revenue and EBITDA targets. PSP options are valued using the Black-Scholes option-pricing model with the assumptions noted in the table above. Based on the results of fiscal year 2018 the PSP targets were not achieved. PSP options vested in 2019 after board approval and $5,221 of compensation costs were recorded for PSP options during the year ended December 31, 2019. Total stock-based compensation cost of $0 and $0 was recognized for the years ended December 31, 2018 and 2017.

Non-Employee Warrants

In September 2019, the Company issued warrants to a non-employee vendor providing marketing services. The warrant allows the vendor to purchase 341 shares of common stock for an exercise price of $0.01 per share over a 5‑year term. The warrants were issued for marketing services provided to the Company, were fully vested, and had no future requisite service period. Compensation cost of $444 was recognized entirely in the year ended December 31, 2019. Compensation cost for this warrant is presented within general and administrative expenses in the consolidated statement of operations. As of December 31, 2019, the warrant remains unexercised.

The following table shows stock option activity for the years ended December 31, 2019, 2018 and 2017:


								Weighted
						Weighted		Average
	Number of Shares					Average		Remaining	Aggregate
	Time					Exercise		Term	Intrinsic
	Based		PSP	LTIP	Total	Price		(years)	Value
Outstanding at December 31, 2016	$	44,530	—	—	44,530	$	0.22	8.24	$	30,680
Granted		14,165	—	5,131	19,296		1.17
Exercised		(1,306)	—	—	(1,306)		0.15
Forfeited		(958)	—	—	(958)		0.61
Outstanding at December 31, 2017	$	56,431	—	5,131	61,562	$	0.51	8.00	$	32,401
Granted		13,564	5,320	35,058	53,942		1.18
Exercised		(2,297)	—	—	(2,297)		0.25
Forfeited		(1,171)	(159)	—	(1,330)		0.88
Outstanding at December 31, 2018	$	66,527	5,161	40,189	111,877	$	0.84	8.15	$	69,765
Granted		16,278	6,263	5,628	28,169		1.65
Exercised		(2,837)	(112)	—	(2,949)		0.41
Forfeited		(1,196)	(79)	—	(1,275)		1.19
Outstanding at December 31, 2019	$	78,772	11,233	45,817	135,822	$	1.01	7.64	$	203,431
Time Vesting*					75,170	$	0.84	7.01	$	125,849
PSP**					10,719	$	1.44	8.92	$	11,484
LTIP**					8,568	$	1.21	8.42	$	11,129

* Adjusted for assumed forfeitures

** Adjusted for assumed forfeitures, excludes post‑2019 vesting

Income Taxes

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

11.Income Taxes

Three and six months ended June 30, 2020 and June 30, 2019 is as follows:


	Three months ended June 30,				Six months ended June 30,
	2020		2019		2020		2019
Provisions for income taxes	$	323	$	7	$	332	$	16

The effective tax rates for the three and six months ended June 30, 2020 were (.20)% and (.14)%, respectively, and the effective tax rates for the three and six months ended June 30, 2019 were (.03)% and (.03)%, respectively. The difference between the Company’s effective tax rates for the 2020 and 2019 periods and the U.S. statutory tax rate of 21% was primarily due to a full valuation allowance related to the Company’s net U.S. deferred tax assets, offset partially by current state tax and current foreign tax. The Company regularly evaluates the realizability of its deferred tax assets and establishes a valuation allowance if it is more likely than not that some or all the deferred tax assets will not be realized.

On March 27, 2020, the United States enacted the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). The CARES Act is an emergency economic stimulus package that includes spending and tax breaks to strengthen the United States economy and fund a nationwide effort to curtail the effect of COVID-19. As of June 30, 2020, the Company has analyzed the provisions of the CARES Act and determined it did not have a significant impact to the Company.

11. Income Taxes

Loss before provision for (benefit from) income taxes for the years ended December 31, 2019, 2018 and 2017 consist of the following:


	Year Ended December 31,
	2019		2018		2017
United States	$	(142,198)	$	(76,122)	$	(75,445)
Foreign		1		7		99
Loss before provision for (benefit from) income taxes	$	(142,197)	$	(76,115)	$	(75,346)

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


	Year Ended December 31,
	2019		2018		2017
Current:
Federal	$	—	$	—	$	—
State		—		—		—
Foreign		4		86		65
Total current provision		4		86	$	65
Deferred:
Federal	$	—	$	9	$	36
State		54		10		109
Foreign		—		—		—
Total deferred provision		54		19		145
Total provision	$	58	$	105	$	210

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, 2019, 2018 and 2017 are as follows:


	Year Ended December 31,
	2019		2018		2017
Provision for income taxes at statutory rate	$	(29,863)	$	(15,984)	$	(25,400)
Prior year provision true-ups		3,164		(157)		982
State taxes, net of federal benefit		(7,522)		(7,525)		(2,769)
Certain stock-based compensation expenses		2,412		430		536
Non-deductible lobbying expenses		1,885		1,352		2,505
Non-deductible acquisition expenses		2,068		—		—
Change in valuation allowance		19,988		21,584		(66,370)
Impact of federal rate change on net deferred taxes		—		—		90,889
Net operating loss write-off		7,246		—		—
Other		680		405		(163)
Provision for income taxes	$	58	$	105	$	210

In 2019, the Company wrote off $7,246 of the net operating loss deferred tax asset due to the IRC Section 382 limitation discussed below, with a corresponding reduction to the valuation allowance of $7,246 for a net provision impact of $0.

The Tax Cuts and Jobs Act was enacted on December 22, 2017 (“the Act”). The Act contains significant changes to corporate taxation including, but not limited to, reducing the U.S. federal corporate tax rate from a top marginal rate of 35% to 21%, requiring companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred, and creating new taxes on certain foreign sourced earnings. On December 22, 2017, Staff Accounting Bulletin No. 118 (“SAB 118”) was issued to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Act.

As of December 31, 2017, the Company re-measured U.S. federal deferred tax assets and liabilities based on the rates at which they are anticipated to reverse in the future, which is generally 21%. The amount recorded related to the re-measurement of our deferred tax asset balance was a decrease of $90,890, with a corresponding reduction to the valuation allowance of $91,050 for a net benefit of $160.

The Act limited the deduction for net operating loss carryovers generated in the taxable years beginning after December 31, 2017, to 80% of taxable income computed without regard to the deduction and extended the life of these net operating losses to an indefinite carryforward. Due to the indefinite life of the net operating losses generated after December 31, 2017 and the annual 80% NOL utilization limitation that would be imposed in the year of use, the Act resulted in the indefinite life deferred tax liability becoming a source of income against the realization of the indefinite lived portion of the NOLs and certain deferred tax assets that the Company expects to become indefinite lived NOLs when they reverse in future years. As of December 31, 2017, the amount recorded related to the scheduling of the indefinite-lived intangibles was a benefit of $230.

The one-time transition tax is based on our total post‑1986 earnings and profits (“E&P”) for which we have previously deferred from U.S. income taxes. We recorded a provisional amount for our one-time transition tax liability of $36 for our foreign subsidiaries, resulting in an increase of income tax provision of $0 as we are utilizing net operating losses, which had a full valuation allowance, against the one-time transition tax liability. During the year ended December 31, 2018 we completed our calculation of the total post‑1986 foreign E&P for these foreign subsidiaries and increased the one-time transition tax liability by $15, resulting in no change to income tax expense as we utilized net operating losses, which had a full valuation allowance, against the one-time transition tax liability.

As a result of the Act and the current U.S. taxation of deemed repatriated earnings, the additional taxes that might be payable upon repatriation of foreign earnings are not significant. However, we do not have any current plans to repatriate these earnings because the underlying cash will be used to fund the ongoing operations of the foreign subsidiaries.

As of December 31, 2018, we have completed our accounting for the effects of the Act, including the transition tax, remeasurement of deferred taxes, our reassessment of valuation allowance and electing to account for global intangible low-taxed income (“GILTI”) as a period expense. There were no additional expenses recognized in the year ended December 31, 2018 to adjust the provisional amounts recorded in 2017 related to the Act.

Significant components of the Company’s deferred tax assets (liabilities) as of December 31, 2019 and 2018 are as follows:


	As of December 31,
	2019		2018
Deferred tax assets:
Stock-based compensation	$	4,552	$	3,472
Intangible assets		123		187
Fixed assets		—		365
Accrual and other temporary differences		20,907		12,273
Credit carryforwards		15		15
Net operating loss carryforwards		217,836		203,180
Total deferred tax assets:	$	243,433	$	219,492
Deferred tax liability:
Capitalized software costs		(6,335)		(4,364)
Fixed assets		(2,035)		—
Total Net Deferred Tax Assets		235,063		215,128
Valuation allowance		(235,280)		(215,292)
Net deferred tax liabilities	$	(217)	$	(164)

The Company has provided a valuation allowance against the net deferred tax assets since realization of any future benefit from deductible temporary differences and net operating loss and tax credit carryforwards cannot be sufficiently assured as of December 31, 2019. In computing our valuation allowance needs, we include the deferred tax liability associated with assets that have an indefinite life for US GAAP purposes because they provide a source of income against the realization of the indefinite lived portion of the NOLs and certain deferred tax assets that the Company expects to become indefinite lived NOLs when they reverse in future years. For the year ended December 31, 2019, the valuation allowance increased by approximately $19,988.

As of December 31, 2019, the Company had federal and state tax net operating loss carryforwards of approximately $676,040 and $759,040, respectively, which may be available to offset future income tax liabilities and expire at various dates through 2039. The aggregate amount of federal NOLs that are not expected to be utilized due to the annual Section 382 limitations is $34,504 and the tax effect of $7,246 was written off during the year ended December 31, 2019, as discussed in more detail below. Additionally, the Company has $134,400 of federal net operating loss carryforwards which carryforward indefinitely, subject to an 80% taxable income limitation in the year of utilization. The Company has generated $171 and $100 of operating loss carryforwards in Malta and Australia, respectively, both of which carryforward indefinitely. The Company has approximately $15 of federal research credit carryforwards available that expire through 2032.

Utilization of the NOL carryforwards may be subject to limitation under Section 382 of the Internal Revenue Code of 1986 due to ownership change limitations 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. The Company completed a Section 382 study through December 31, 2019 to assess whether an ownership change had occurred, or whether there had been multiple ownership changes since its formation. The Company concluded that ownership changes occurred in November 2013 and March 2017. As a result, the Company’s use of NOL carryforwards as of March 2017 are subject to annual limitations through 2037. For the tax year ending December 31, 2020, these NOLs are subject to a cumulative limitation of $295,605 and each year after is subject to an annual limitation of $77,069 in 2021, $25,247 in 2022 and $15,051 through 2037. Annual limitations under Section 382 that go unused can be carried forward to allow for an increased limitation in future years. The federal net operating losses incurred by the Company after February 2017 are not impacted by these limitations as of December 31, 2019. 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.

With limited exception, the Company is no longer subject to U.S. federal and state income tax audits by taxing authorities for years through 2015. The years subsequent to 2015 contain matters that could be subject to differing interpretations of applicable tax laws and regulations as it relates to the amount and/or timing of income, deductions and tax credits. Although the timing and outcome of tax audits is always uncertain, management has analyzed the Company’s income tax positions taken for all open years and has concluded that no provision for uncertain tax positions is required in the consolidated financial statements.

Segment Information

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

Segment Information

12.Segment Information

Prior to the second quarter of fiscal year 2020, the Company operated its business and reported its results through a single reportable segment. As a result of the acquisition of SBTech on April 23, 2020, the Company began to operate its business and report its results through two operating and reportable segments: B2C and B2B, in accordance with ASC Topic 280, Segment Reporting. The B2C segment is comprised of the Old DK business and the B2B segment is comprised of SBTech in its entirety. The B2C segment primarily provides users with DFS, sports betting and iGaming opportunities while the B2B segment is involved in the design, development and licensing of sports and casino wagering software for business customers.

The reportable segments are segments 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 reportable segment.

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 tables:


	Three Months Ended June 30,
	2020		2019
Revenue:
B2C	$	55,977	$	57,390
B2B		14,954		—
Total revenue		70,931		57,390

Adjusted EBITDA:
B2C		(53,973)		(21,101)
B2B		(3,522)		—
Total adjusted EBITDA		(57,495)		(21,101)
Adjusted for:
Depreciation and amortization		18,668		3,274
Interest (income) expense, net		588		(426)
Income tax expense		323		7
Stock-based compensation		54,486		1,844
Transaction-related costs		25,255		1,276
Litigation, settlement and related costs		2,022		814
Other non-recurring costs and special project costs		2,517		223
Non-operating costs		83		—
Net Loss attributable to common stockholders	$	(161,437)	$	(28,113)

Due to the timing of the Business Combination, the three-month period ended June 30, 2020 reflects B2B/SBTech activity beginning April 24, 2020 and the three-month period ended June 30, 2019 does not reflect B2B/SBTech activity.


	Six Months Ended June 30,
	2020		2019
Revenue:
B2C	$	144,519	$	125,482
B2B		14,954		—
Total revenue		159,473		125,482

Adjusted EBITDA:
B2C		(103,434)		(41,516)
B2B		(3,522)		—
Total adjusted EBITDA		(106,956)		(41,516)
Adjusted for:
Depreciation and amortization		23,372		6,199
Interest (income) expense, net		2,939		(1,087)
Income tax expense		332		16
Stock-based compensation		59,328		6,675
Transaction-related costs		30,907		1,276
Litigation, settlement and related costs		3,352		1,701
Other non-recurring costs and special project costs		2,646		1,371
Non-operating costs		285		—
Net Loss attributable to common stockholders	$	(230,117)	$	(57,667)

Due to the timing of the Business Combination, the six-month period ended June 30, 2020 reflects B2B/SBTech activity beginning April 24, 2020 and the six-month period ended June 30, 2019 does not reflect B2B/SBTech activity.

17. Segment Information

The Company operates in a single segment. Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision maker (“CODM”) in making decisions regarding resource allocation and assessing performance. The Company has determined that its Chief Executive Officer is the CODM. To date, the Company’s CODM has made such decisions and assessed performance at the Company-level.

The Company attributes revenue to individual countries based on the location of the Company’s customers. The Company’s products are primarily sold from the United States, Canada, United Kingdom, Germany, Malta, Netherlands, Ireland, Austria and Australia.

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


	Years ended December 31,
	2019		2018		2017
United States	$	318,144	$	219,415	$	187,261
Other		5,266		6,862		4,583
Total revenue	$	323,410	$	226,277	$	191,844

As of the years ended December 31, 2019, and 2018, the Company did not have material assets located outside of the United States.

Loss Per Share

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

Loss Per Share

13.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:


	Three months ended June 30,				Six months ended June 30,
	2020		2019		2020		2019
Net loss	$	(161,437)	$	(28,113)	$	(230,117)	$	(57,667)
Basic and diluted weighted-average common shares outstanding		291,992		184,723		238,104		184,234
Loss per share attributable to common stockholders:
Basic and diluted	$	(0.55)	$	(0.15)	$	(0.97)	$	(0.31)

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:


	June 30, 2020	June 30, 2019
Warrants	2,327	3,783
Stock options	62,912	48,267
Total	65,239	52,050

16. Loss Per Share

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


	Years ended December 31,
(in thousands except per share data):	2019		2018		2017
Net loss	$	(142,734)	$	(76,220)	$	(75,556)
Less: accretion of preferred share issuance costs		(992)		(678)		(1,513)
Net loss attributable to common stockholders	$	(143,726)	$	(76,898)	$	(77,069)
Basic and diluted weighted average common share outstanding		386,793		381,821		142,451
Loss per share attributable to common shareholders:
Basic and diluted	$	(0.37)	$	(0.20)	$	(0.54)

There were no preferred or other dividends declared for the period. For the periods presented, the following securities and Convertible Notes described in Note 7 were not required to be included in the computation of diluted shares outstanding:


	Years ended December 31,
	2019	2018	2017
Warrants	515	2,422	2,080
Stock options	135,823	111,877	61,562
Convertible Notes(a)	20,952	—	—
Total	157,290	114,299	63,642

(a)

Represents the conversion of the outstanding balance plus accrued interest divided by the stated conversion price of 3.31. These notes are contingently issuable as of December 31, 2019.

Related Party Transactions	6 Months Ended	12 Months Ended
Related Party Transactions	Jun. 30, 2020	Dec. 31, 2019
Related Party Transactions
Related Party Transactions	14.Related-Party Transactions Media Purchase Agreement (“MPA”) In July 2015, Old DK entered into an MPA with a related party purchaser 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 $15,000 per year, plus an additional contingent commitment of $5,000 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 $15,000 in aggregate through December 31, 2021 ($5,000 per year) and the contingent commitment was removed. If the Company satisfies the $15,000 commitment prior to December 31, 2021, the MPA will expire unless the Company elects to extend the MPA through the next NFL season with no required minimum. The Company recorded expense of $1,241 and $3,400 related to the MPA for the three and six months ended June 30, 2020 and recorded expense of $88 and $2,216 related to the MPA for the three and six months ended June 30, 2019, respectively, in sales and marketing expenses in the condensed consolidated statements of operations. As of June 30, 2020 and December 31, 2019, $1,563 and $2,413, respectively, of MPA is included in accounts payable and accrued expenses in the condensed consolidated balance sheets. Private Placement Agent Old DK entered into an engagement letter with a related party (the “Private Placement Agent”) in August 2019, as amended in December 2019. Pursuant to the engagement letter, the Private Placement Agent has acted as the exclusive financial advisor to Old DK, and Old DK agreed to pay certain acquisition and financing fees in connection with the Business Combination with SBTech and DEAC. As of the six months ended June 30, 2020 and June 30, 2019 Old DK incurred $12,349 and $0, respectively, of fees with the Private Placement Agent. During the three months ended June 30, 2020 and June 30, 2019, Old DK incurred $11,748 and $0, respectively. Receivables from Equity Method Investment The Company provides office space and general operational support to DKFS, LLC, an equity-method investment. The operational support is primarily general and administrative support services. As of June 30, 2020, and December 31, 2019, the Company had $1,080 and $959, respectively, of receivables from the entity related to these services, which are included within current assets in the condensed consolidated balance sheets. Transactions with a Shareholder and his Immediate Family Members The Business Combination Agreement requires payment to a shareholder in the event certain SBTech accounts receivable are collected. As of June 30, 2020, the Company had a $1,593 payable to the shareholder. In addition, the Company had sales to an entity related to an immediate family member of the shareholder during the three and six months ended June 30, 2020 and had an associated accounts receivable balance of $579 as of June 30, 2020. There were no related party transactions with the shareholder or their immediate family members for the three or six months ended June 30, 2019 and no related accounts receivable balance as of December 31, 2019.	12. Related-Party Transactions Media Purchase Agreement (“MPA”) In July 2015, the Company entered into a MPA with a related party purchaser 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 $15,000 per year plus an additional contingent commitment of $5,000 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 $15,000 in aggregate through December 31, 2021 ($5,000 per year) and the contingent commitment was removed. If the Company satisfies the $15,000 commitment prior to December 31, 2021, the MPA will expire unless the Company elects to extend the MPA through the next NFL season with no required minimum. The Company recorded expense of $8,411 and $23,313 related to the MPA for the years ended December 31, 2019 and 2018, respectively, in sales and marketing expenses in the consolidated statements of operations. As of December 31, 2019, and 2018, $2,413 and $428, respectively, of MPA contractual obligations were unpaid and included in accounts payable and accrued expenses in the consolidated balance sheets. Future minimum obligations under the MPA are included in the other contractual obligations table in Note 13. Private Placement Agent In March 2015, the Company entered into an engagement letter with a related party (the “Private Placement Agent”), pursuant to which the related party served as a private placement agent for DraftKings in connection with DraftKings’ Series E and Series E‑1 preferred stock financings. The engagement letter terminated in June 2018. Of the Company’s Series E‑1 redeemable convertible preferred stock issued and outstanding, $119,752 and $119,427 as of December 31, 2019 and 2018, respectively, is held by the related party. Redeemable convertible preferred stock is discussed in Note 8. In connection with the Company’s Series E‑1 redeemable convertible preferred stock issuance, $2,066 of fees were incurred during the year ended December 31, 2017 and $0 in fees were incurred during the years ended December 31, 2019 and 2018. The 2017 fees are accreted ratably over the expected life of Series E‑1. These fees are presented in the Series E‑1 redeemable convertible preferred stock in the consolidated balance sheets. The Company also entered into an engagement letter in August 2019, and amended in December 2019, with the Private Placement Agent. Pursuant to the engagement letter, the Private Placement Agent has acted as the exclusive financial advisor to DraftKings, and the Company has agreed to pay certain acquisition and financing fees in connection with potential transactions. Refer to Note 7 for a description of the financing fee incurred in 2019. Receivables from Equity Method Investment The Company provides office space and general overhead support to DKFS, LLC, an equity-method affiliate. The overhead support relates to rent, utilities and general and administrative support services. As of December 31, 2019, the Company had $959 of receivables from the entity related to these services and is included within current assets.

Commitments and Contingencies

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

Summary of Significant Accounting Policies and Practices

15.Commitments and Contingencies

Leases

The Company rents its corporate office facilities, data centers, and motor vehicles under lease arrangements. The terms of the leases include scheduled base rent increases, and obligations to pay for a proportionate share of each property’s operating costs and tax escalations as defined in each lease. The total amount of rental payments due over each lease term is charged to rent expense ratably over the life of each lease.

Total rent expense for the three and six months ended June 30, 2020 was $4,702 and $7,785, respectively, and for the three and six months ended June 30, 2019 was $2,406 and $4,597, respectively.

Future minimum lease payments are as follows:


Years ending December 31,
From July 1, 2020 to December 31, 2020	$	8,435
2021		15,668
2022		13,947
2023		13,637
2024		12,029
Thereafter		35,766
Total	$	99,482

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:


Years ending December 31,
From July 1, 2020 to December 31, 2020	$	24,439
2021		51,487
2022		28,959
2023		17,463
2024		8,150
Thereafter		15,400
Total	$	145,898

Contingencies

From time to time, and in the ordinary course of business, the Company may be subject to certain claims, charges and litigation. Much of civil litigation to which the Company is a party relates to advertising and consumer protection matters. The majority of the cases to which the Company is a party were consolidated into a multi-district litigation in February 2016 in the U.S. District Court for the District of Massachusetts, along with claims against other entities and individuals within the DFS industry. On November 27, 2019, the Court granted in part and denied in part the DFS defendants’ motions to compel arbitration. The Company intends to vigorously defend itself. While the Company does not believe, based on currently available information, that the outcome of this proceeding will have a material adverse effect on the Company’s financial condition, the outcome could be material to the Company’s financial results for any particular period, depending, in part, upon the results for such period.

We are 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 unaudited condensed consolidated financial statements and may materially affect our 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 $5,053 and $4,481 as of June 30, 2020 and December 31, 2019, respectively, for the Company’s leases of office space.

13. Commitments and Contingencies

Leases

The Company rents its corporate office facilities under long-term lease arrangements in New York, NY and Boston, MA. The terms of the leases include scheduled base rent increases, and obligations to pay for a proportionate share of each property’s operating costs and tax escalations as defined in each lease. The total amount of rental payments due over each lease term is charged to rent expense ratably over the life of each lease.

In November 2019, the Company entered into an agreement to lease office space in Dublin, Ireland. Pursuant to the lease agreement, the lease term is 12 months, commencing in December 2019. The total payment for the 12‑month period is $651 (€598), exclusive of value added taxes, which will be charged at the prevailing rate.

The Company rents its corporate office facilities under a 10‑year long-term lease arrangement commencing in April 2019. The total lease commitment is $35,642. The Company also opened a line of credit in the amount of $3,409 in escrow to act as a security deposit on the lease. The total amount of rental payments due over each lease term is charged to rent expense ratably over the life of each lease.

Total rent expense for the years ended December 31, 2019, 2018 and 2017 was $10,412, $5,266 and $3,431, respectively.

Future minimum lease payments are as follows:


Years ending December 31,
2020	$	10,067
2021		8,300
2022		8,374
2023		8,292
2024		7,310
Thereafter		23,685
Total	$	66,028

Other Contractual Obligations and Contingencies

The Company is a party to several non-cancelable contracts with vendors and licensors for marketing and other strategic partnership related agreements where the Company is obligated to make future minimum payments under the non-cancelable terms of these contracts as follows:


Years ending December 31,
2020(a)	$	74,390
2021		54,725
2022		33,885
2023		13,689
2024		4,950
Thereafter		4,100
Total	$	185,739

(a) 2020 balance includes $13,880 of contingent success fees.

Included in the above contractual obligations are related party commitments from the MPA discussed in Note 13.

In connection with the DraftKings Merger as described in Note 18, the Company has entered into success fee arrangements with third-party advisors that would require the Company to pay the Private Placement Agent, a related party as described in Note 12, a fee of $5,000 for services in connection with the consummation of the SBTech Acquisition and a fee of $7,000 for services in connection with the consummation of the DraftKings Merger. The Company also has agreements with two separate advisors for a total fee of $1,280 for services in connection with the consummation of the DraftKings Merger.

In addition, as described in Note 6, upon the earlier of (i) an Acquisition, as defined in the Credit Agreement, or (ii) the closing of an initial public offering, in either case, the Company will also be required to pay a success fee to Pacific Western Bank in the amount of $600 or $650 if the outstanding principal amount exceeds $45,000 at any time. These success fees have not been recorded in the consolidated balance sheet or consolidated statement of operations as at December 31, 2019 but have been recorded in the 2020 other contractual obligations above.

Litigation

From time to time, and in the ordinary course of business, the Company may be subject to certain claims, charges and litigation. Much of civil litigation to which the Company is a party relates to advertising and consumer protection matters. The majority of these cases were consolidated into a multi-district litigation (“MDL”) in February 2016 in the U.S. District Court for the District of Massachusetts along with claims against other entities and individuals within the DFS industry (the “DFS defendants”). On November 27, 2019, the Court granted in part and denied in part the DFS defendants’ motions to compel arbitration. The Company intends to vigorously defend itself. While we do not believe, based on currently available information, that the outcome of this proceeding will have a material adverse effect on the Company’s financial condition, the outcome could be material to the Company’s financial results for any particular period, depending, in part, upon the results for such period.

Settlement Liability

On October 25, 2016, the Company and The Office of the Attorney General of the State of New York (“NYAG”) reached a settlement agreement that resolved all claims, brought forth by the NYAG, relating to deceptive advertising by the Company. The Company will pay a settlement amount of $6,000 in penalties and costs to the State of New York over a period of four years. As of December 31, 2019, the Company paid all remaining obligations under the agreement. As of December 31, 2018, the Company accrued $2,876 and $0 of current and non-current liabilities, respectively, on the consolidated balance sheet related to the NYAG settlement agreement.

On September 1, 2017, the Company and the Commonwealth of Massachusetts through the Office of the Massachusetts Attorney General (“MAAG”) reached a settlement agreement that resolved all claims, demands, liabilities, and causes of action related to the advertising and offering of the Company’s daily fantasy sports contests and operation of the Company’s business activities. The Company agreed to pay a settlement amount of $1,300 to the Commonwealth of Massachusetts over a period of three years. As of December 31, 2019, the Company has paid all remaining obligations under the agreement. The Company paid $400 and $400 to MAAG in fiscal years 2019 and 2018, respectively, per the terms of the agreement.

Letters of Credit

In connection with the Credit Agreement with Pacific Western Bank, the Company has entered into several letters of credit totaling $4,481 as of December 31, 2019 and 2018 for the Company’s leases of office space. Refer to Note 6 for further discussion of the Credit Agreement.

Subsequent Events	6 Months Ended	12 Months Ended
Subsequent Events	Jun. 30, 2020	Dec. 31, 2019
Subsequent Events
Subsequent Events	16.Subsequent Events The Company considers events or transactions that occur after the balance sheet date, but before the unaudited condensed consolidated financial statements are issued, to provide additional evidence relative to certain estimates or identify matters that require additional disclosures. The Company evaluated subsequent events through August 14, 2020, the date on which the unaudited condensed consolidated financial statements were available to be issued. The unaudited condensed consolidated financial statements reflect those material items that arose after the balance sheet date, but prior to this date that would be considered recognized subsequent events.	18. Subsequent Events On December 22, 2019, Diamond Eagle Acquisition Corp, a special purpose acquisition company (“Diamond Eagle”), entered into a Business Combination Agreement (the “Business Combination Agreement”) with DraftKings Inc. (“DraftKings”), the Group, the Group’s shareholders, the representative of the Group’s shareholders, DEAC NV Merger Corp., a Nevada corporation and a wholly-owned subsidiary of DEAC (“DEAC Nevada”), DEAC Merger Sub Inc., a Delaware corporation and a wholly-owned subsidiary of DEAC (“Merger Sub”), pursuant to which (i) Diamond Eagle will merge with and into DEAC Nevada, with DEAC Nevada surviving the merger (the “reincorporation”), (ii) following the reincorporation, Merger Sub will merge with and into DraftKings with DraftKings surviving the merger (the “DraftKings Merger”), (iii) immediately following the DraftKings Merger, Diamond Eagle will acquire all of the issued and outstanding share capital of SBTech and vested in-the-money options exercisable for SBTech share capital (the “SBTech Acquisition”) for approximately €590,000, consisting of (x) €180,000 in cash, subject to customary net debt and working capital and certain other specified adjustments payable in respect of the SBT shares and 30% of the in-the-money vested SBT options and (y) approximately €410,000 in shares of New DraftKings Class A common stock, valued at the redemption price for Diamond Eagle’s public shares in the Business Combination, and in the form of newly issued in-the-money vested options of New DraftKings exercisable for New DraftKings Class A common stock and (iv) DEAC Nevada will be renamed DraftKings Inc. Each of the DraftKings Merger and the SBTech Acquisition will be on the terms and subject to the conditions set forth in the Business Combination Agreement. The transaction is expected to close in 2020. In January and February 2020, DraftKings issued $40,042 of additional Convertible Notes. Refer to Note 7 for the associated terms and conditions. In February 2020, the Company paid off its $6,750 term note outstanding at December 31, 2019. In March 2020, the Company withdrew $44,500 in funds from its Credit Agreement with Pacific Western Bank. The Net facility available from the Credit Agreement for future withdrawals as of March 26, 2020 is $1,019, which represents the $50,000 facility less the $44,500 in funds withdrawn and the $4,481 in letters of credit outlined in Note 13. The $44,500 remains on deposit with Pacific Western Bank on March 26, 2020. COVID‑19 is having a significant impact on the Company. The direct impact on the Company beyond disruptions in normal business operations is primarily through the suspension, postponement and cancellation of major sports seasons and sporting events. Typically, during the March and April time periods, the Company would have significant user interest and activity in our DFS and Sportsbook product offerings for sporting events such as the NCAA college basketball tournament, the Masters golf tournament, as well as late season games and early playoff series of the National Basketball Association and the National Hockey League. The status of most of these sporting events is unknown, including whether the NBA season will be completed either in part or in its entirety on a delayed schedule or whether the Masters will be played anytime in calendar year 2020. The ultimate impact of COVID‑19 on the Company’s financial and operating results is unknown and will depend on the length of time that these disruptions exist and whether the sports seasons and sporting events will ultimately be suspended, postponed, or cancelled; however, COVID‑19 has had an impact and may continue to have an impact, the full extent of which is unknown, but which could be material. The Company considers events or transactions that occur after the balance sheet date, but before the consolidated financial statements are issued to provide additional evidence relative to certain estimates or identify matters that require additional disclosures. The Company evaluated subsequent events through March 26, 2020, the date on which the consolidated financial statements were available to be issued. The consolidated financial statements reflect those material items that arose after the balance sheet date, but prior to this date that would be considered recognized subsequent events.

Significant Accounting Policies (Policies)

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

Basis of Presentation and Principles of Consolidation

The accompanying unaudited condensed consolidated financial statements include the accounts and operations of the Company. All intercompany accounts and transactions have been eliminated.

Comprehensive Income (Loss)

Foreign Currency

Going Concern

Cash and cash equivalents

Concentrations of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of operating cash and cash reserved for users. The Company maintains cash and cash reserves for users primarily across five financial institutions; however, the vast majority is held with one financial institution within separate bank accounts, which management believes to be of a high credit quality, in amounts that exceed federally insured limits. The Company does not believe that it is subject to unusual credit risk beyond the normal credit risk associated with commercial banking relationships.

Acquisitions

The Company accounts for business combinations under the acquisition method of accounting, in accordance with Accounting Standards Codification (“ASC”) Topic 805, Business Combinations, which requires assets acquired and liabilities assumed to be recognized at their fair values on the acquisition date. Any excess of the fair value of purchase consideration over 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 involves management making significant estimates and assumptions.

Cash

Cash includes highly liquid checking and instant access internet banking accounts which are owned by the Company.

Cash Reserved for Users

Receivables Reserved for Users

Accounts Receivables

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

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

The Company’s intangible assets consist of Developed Technology, Customer Relationships, Internally-Developed Software, Gaming Licenses and Trademarks and Tradenames.

Developed Technology

Customer Relationships

Internally Developed Software

Gaming Licenses

Trademarks and Tradenames

Goodwill

Impairment of Long-Lived Assets

Equity Method Investment

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, dividends received, capital contributions and distributions and impairment losses. The Company performs a qualitative assessment quarterly and recognizes an impairment if there are sufficient indicators that the fair value of the investment is less than carrying value.

Leases

The Company accounts for leases under the provisions of ASC Topic 840, Leases, which requires that leases be evaluated and classified as operating or capital leases for financial reporting purposes. The terms used for the evaluation include renewal option periods in instances in which the exercise of the renewal option can be reasonably assured and failure to exercise such option would result in an economic penalty. Leases are classified as capital leases whenever the terms of the lease transfer substantially all of the risks and rewards of ownership to the lessee. All other leases are recorded as operating leases. As of December 31, 2019 and 2018, all of the Company’s leases were operating leases.

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 other long-term liabilities in the consolidated balance sheets.

Liabilities to Users

General and Administrative

The Company determines revenue recognition through the following steps:

· Identifying the contract, or contracts, with the customer;

· Identifying the performance obligations in the contract;

· Determining the transaction price;

· Allocating the transaction price to performance obligations in the contract; and

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

Online Gaming

Gaming software

Transaction Price Considerations

Variable Consideration

Allocation of transaction price to performance obligations

Certain costs to obtain or fulfill contracts

Contract balances

Revenue Recognition

The Company determines revenue recognition through the following steps:

Identifying the contract, or contracts, with the customer;

Identifying the performance obligations in the contract;

Determining the transaction price;

Allocating the transaction price to performance obligations in the contract; and

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

Transaction Price Considerations

Certain costs to obtain or fulfill contracts

Contract balances

Refer to Note 15 for further information, including changes in deferred revenue during the period.

Cost of Revenue

Sales and Marketing

Product and Technology

Stock-based Compensation

Earnings (loss) per share

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 the financial statements and tax bases 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 provision. 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.

Fair Value Measurements

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

Recently Adopted Accounting Pronouncements

Recent Accounting Pronouncements Not Yet Adopted

Summary of Significant Accounting Policies and Practices (Tables)

6 Months Ended

Jun. 30, 2020

Summary of Significant Accounting Policies and Practices

Summary of Useful lives of each asset


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 Combination (Tables)

6 Months Ended

Jun. 30, 2020

Business Combination

Summary of consideration transferred at Closing

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


Purchase consideration

Cash consideration(1)	$	182,862
Share consideration(2)		789,065
Other cash consideration(3)		3,614
Total SBTech consideration	$	975,541

Summary of preliminary pending finalization of valuation analyses pertaining to intangible assets acquired and tax liabilities assumed including the calculation of deferred tax assets and liabilities


Cash and cash equivalents	$	9,639
Trade receivables		18,741
Other current assets		1,848
Property and equipment		10,677
Intangible assets		490,513
Other non-current assets		1,017
Total identifiable assets acquired		532,435
Liabilities assumed:
Accounts payable and accrued expenses		23,613
Other long-term liabilities		4,226
Total liabilities assumed		27,839
Net assets acquired (a)		504,596
Estimated purchase consideration (b)		975,541
Estimated goodwill (b) – (a)	$	470,945

Summary of intangible assets


			Weighted-Average
	Fair Value		Useful Life (in years)
	(in thousands)
Developed Technology	$	392,028	8
Customer relationships		93,699	5
Trademarks and trade names		4,308	3
Gaming License		478	2-3
Total	$	490,513

Summary of pro forma financial information



	Three months ended June 30,				Six months ended June 30,
	2020		2019		2020		2019
Net Revenue	$	74,998	$	82,987	$	188,443	$	175,941
Net Loss	$	(149,581)	$	(37,187)	$	(231,579)	$	(125,110)

Property and Equipment (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

Summary of property and equipment, net


	June 30, 2020		December 31, 2019
Computer equipment and software	$	19,676	$	9,685
Furniture and fixtures		7,540		5,891
Leasehold improvements		20,558		17,373
Property and Equipment		47,774		32,949
Accumulated depreciation		(10,772)		(7,004)
Property and Equipment, net	$	37,002	$	25,945


	December 31,
	2019		2018
Computer equipment and software	$	9,685	$	5,537
Furniture and fixtures		5,891		4,018
Leasehold improvements		17,373		7,924
Property and Equipment		32,949		17,479
Accumulated depreciation		(7,004)		(3,377)
Property and Equipment, net	$	25,945	$	14,102

Intangible Assets and Goodwill (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

Summary of intangible assets other than goodwill


	Weighted-
	Average
	Remaining	Gross
	Amortization	Carrying		Accumulated
	Period	Amount		Amortization		Net
Developed Technology	7.82 years	$	407,680	$	(9,484)	$	398,196
Internally developed software	2.37 years		55,109		(26,419)		28,690
Gaming Licenses	4.62 years		19,138		(1,944)		17,194
Trademarks and tradenames	2.82 years		4,480		(278)		4,202
Customer relationships	4.82 years		97,440		(3,627)		93,813
Intangible Assets, net		$	583,847	$	(41,752)	$	542,095


	Weighted-
	Average
	Remaining	Gross
	Amortization	Carrying		Accumulated
	Period	Amount		Amortization		Net
Internally developed software	2.35 years	$	43,753	$	(21,188)	$	22,565
Gaming Licenses	4.86 years		12,003		(629)		11,374
Intangible Assets, net		$	55,756	$	(21,817)	$	33,939


	Weighted-
	Average	Gross
	Amortization	Carrying		Accumulated
	Period	Amount		Amortization		Net
User relationships	—	$	3,328	$	(3,328)	$	—
Internally developed software	2.35 years		43,753		(21,188)		22,565
State licenses	4.86 years		12,003		(629)		11,374
Intangible Assets, net		$	59,084	$	(25,145)	$	33,939

The Company has the following intangible assets, net at December 31, 2018:


	Weighted-
	Average	Gross
	Amortization	Carrying		Accumulated
	Period	Amount		Amortization		Net
User relationships	0.5 years	$	3,328	$	(3,013)	$	315
Internally developed software	2.45 years		28,937		(12,572)		16,365
State licenses	0.75 years		251		(55)		196
Intangible Assets, net		$	32,516	$	(15,640)	$	16,876

Summary of changes in the carrying amount of goodwill


	B2C		B2B		Total
Balance as of December 31, 2019	$	4,738	$	—	$	4,738
Goodwill acquired in SBTech Acquisition*		348,345		122,600		470,945
Currency Translation Adjustment		—		4,895		4,895
Balance as of June 30, 2020	$	353,083	$	127,495	$	480,578

* = Preliminary allocation


Balance as of December 31, 2017	$	4,399
Goodwill acquired		339
Balance as of December 31, 2018	$	4,738
Goodwill acquired		—
Balance as of December 31, 2019	$	4,738

Accounts Payable and Accrued Expenses (Tables)

12 Months Ended

Dec. 31, 2019

Accounts Payable and Accrued Expenses.

Summary of Accounts payable and accrued expenses


	December 31,
	2019		2018
Accounts payable	$	16,618	$	11,626
Accrued payroll and related expenses		17,770		9,857
Accrued litigation, lobbying and compliance		6,153		5,566
Accrued loyalty points		4,131		7,272
Accrued marketing fees		11,855		3,237
Accrued operating taxes		5,745		2,741
Accrued partnership fees		7,868		4,340
Accrued professional fees		4,191		1,978
Accrued software and licenses		1,589		2,263
Accrued other		9,375		7,269
Total	$	85,295	$	56,149

Revenue Recognition (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

Summary of deferred revenue balances


	Three months ended June 30,				Six months ended June 30,
	2020		2019		2020		2019
Deferred revenue, beginning of the period	$	24,094	$	14,074	$	20,760	$	13,581
Deferred revenue, end of the period		24,759		13,280		24,759		13,280
Revenue recognized in the period from amounts included in deferred revenue at the beginning of the period		1,909		2,386		8,635		6,661

Summary of disaggregation of revenue


	Three months ended June 30,				Six Months ended June 30,
	2020		2019		2020		2019
Online gaming	$	55,409	$	56,112	$	139,114	$	121,402
Gaming software		14,954		—		14,954		—
Other		568		1,278		5,405		4,080
Total Revenue	$	70,931	$	57,390	$	159,473	$	125,482


	Years Ended December 31,
	2019		2018(a)		2017(a)
Online Gaming(b)	$	308,177	$	219,131	$	189,779
Other		15,233		7,146		2,065
Total revenue	$	323,410	$	226,277	$	191,844

(a) As disclosed in Note 2, prior period amounts have not been adjusted under the modified retrospective method of adoption of Topic 606.

(b) Online Gaming includes DFS, iGaming and Sportsbook. These revenue streams have similar attributes and the same pattern of recognition.

Summary of Company's revenue by geographic region


	Three months ended June 30,				Six months ended June 30,
	2020		2019		2020		2019
United States	$	56,577	$	55,120	$	147,387	$	122,290
International		14,354		2,270		12,086		3,192
Total Revenue	$	70,931	$	57,390	$	159,473	$	125,482

Stock-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2020

Summary of stock option activity

The following table shows stock option activity for the six months ended June 30, 2020 and 2019:


							Weighted-
					Weighted-		Average
					Average		Remaining	Aggregate
	Number of Options / RSU’s				Exercise		Term	Intrinsic
	Time Based	PSP (3)	LTIP (3)	Total	Price		(in Years)	Value
Outstanding at December 31, 2018	66,527	5,161	40,189	111,877	$	0.84	8.15	$	69,765
Recapitalization Impact	(43,003)	(3,336)	(25,978)	(72,317)		1.54	—		—
Outstanding at December 31, 2018	23,524	1,825	14,211	39,560		2.38	8.15		69,765
Granted	14,861	6,263	5,490	26,614		4.70
Exercised	(1,285)	(31)	—	(1,316)		0.96
Forfeited	(636)	(47)	—	(683)		3.32
Outstanding at June 30, 2019	36,464	8,010	19,701	64,175		2.82	8.11		90,252

Outstanding at December 31, 2019	78,772	11,233	45,817	135,822	$	1.01	7.64	$	203,431
Recapitalization Impact	(50,919)	(7,261)	(29,616)	(87,796)		1.85	—		—
Outstanding at December 31, 2019	27,853	3,972	16,201	48,026		2.86	7.64		203,431
Granted	4,331	—	15,070	19,401		0.61
Exercised	(2,732)	(520)	(603)	(3,855)		1.61
Forfeited	(656)	(4)	—	(660)		2.53
Outstanding at June 30, 2020	28,796	3,448	30,668	62,912	$	2.26	7.79	$	1,968,051

Vested and Expected to Vest as of June 30, 2020
Vested	21,147	3,448	15,599	40,194	$	2.72	6.91	$	1,225,735

Estimate of Expected to Vest(1)
2020(4)	1,966	—	5,100	7,066
2021	3,223	—	—	3,223
2022+(2)	2,110	—	9,280	11,390
	7,299	-	14,380	21,679	$	1.44	9.33	$	708,362

Effect of estimated forfeitures	350	—	689	1,039	$	1.56	9.53	$	33,953

(1)

Adjusted for estimated forfeitures.

(2)

Estimate does not consider future vesting based on share price targets, which may differ materially from the above estimates.

(3)

Performance based instruments.

(4)

For remainder of 2020 period.

Summary of stock compensation expense


			Three Months Ended June 30,					Six Months Ended June 30,
		2020			2019		2020			2019
Time Based	$	1,712		$	1,844	$	3,346		$	3,611
PSP		—			—		1,633			3,064
LTIP (1)		44,774			—		46,349			—
B Shares (2)		8,000			—		8,000			—
Total	$	54,486		$	1,844	$	59,328		$	6,675

(1)

Resulting from achievement of share price targets and probability-based expensing.

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

Income Tax (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

Schedule of Company's provision for income tax

Three and six months ended June 30, 2020 and June 30, 2019 is as follows:


	Three months ended June 30,				Six months ended June 30,
	2020		2019		2020		2019
Provisions for income taxes	$	323	$	7	$	332	$	16


	Year Ended December 31,
	2019		2018		2017
Current:
Federal	$	—	$	—	$	—
State		—		—		—
Foreign		4		86		65
Total current provision		4		86	$	65
Deferred:
Federal	$	—	$	9	$	36
State		54		10		109
Foreign		—		—		—
Total deferred provision		54		19		145
Total provision	$	58	$	105	$	210

Schedule of reconciliation of the federal income tax rate to the Company's effective tax rate


	Year Ended December 31,
	2019		2018		2017
Provision for income taxes at statutory rate	$	(29,863)	$	(15,984)	$	(25,400)
Prior year provision true-ups		3,164		(157)		982
State taxes, net of federal benefit		(7,522)		(7,525)		(2,769)
Certain stock-based compensation expenses		2,412		430		536
Non-deductible lobbying expenses		1,885		1,352		2,505
Non-deductible acquisition expenses		2,068		—		—
Change in valuation allowance		19,988		21,584		(66,370)
Impact of federal rate change on net deferred taxes		—		—		90,889
Net operating loss write-off		7,246		—		—
Other		680		405		(163)
Provision for income taxes	$	58	$	105	$	210

Segment Information (Tables)

6 Months Ended

Jun. 30, 2020

Summary of financial information for the Company's segments

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


	Three Months Ended June 30,
	2020		2019
Revenue:
B2C	$	55,977	$	57,390
B2B		14,954		—
Total revenue		70,931		57,390

Adjusted EBITDA:
B2C		(53,973)		(21,101)
B2B		(3,522)		—
Total adjusted EBITDA		(57,495)		(21,101)
Adjusted for:
Depreciation and amortization		18,668		3,274
Interest (income) expense, net		588		(426)
Income tax expense		323		7
Stock-based compensation		54,486		1,844
Transaction-related costs		25,255		1,276
Litigation, settlement and related costs		2,022		814
Other non-recurring costs and special project costs		2,517		223
Non-operating costs		83		—
Net Loss attributable to common stockholders	$	(161,437)	$	(28,113)


	Six Months Ended June 30,
	2020		2019
Revenue:
B2C	$	144,519	$	125,482
B2B		14,954		—
Total revenue		159,473		125,482

Adjusted EBITDA:
B2C		(103,434)		(41,516)
B2B		(3,522)		—
Total adjusted EBITDA		(106,956)		(41,516)
Adjusted for:
Depreciation and amortization		23,372		6,199
Interest (income) expense, net		2,939		(1,087)
Income tax expense		332		16
Stock-based compensation		59,328		6,675
Transaction-related costs		30,907		1,276
Litigation, settlement and related costs		3,352		1,701
Other non-recurring costs and special project costs		2,646		1,371
Non-operating costs		285		—
Net Loss attributable to common stockholders	$	(230,117)	$	(57,667)

Loss Per Share (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

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:


	Three months ended June 30,				Six months ended June 30,
	2020		2019		2020		2019
Net loss	$	(161,437)	$	(28,113)	$	(230,117)	$	(57,667)
Basic and diluted weighted-average common shares outstanding		291,992		184,723		238,104		184,234
Loss per share attributable to common stockholders:
Basic and diluted	$	(0.55)	$	(0.15)	$	(0.97)	$	(0.31)


	Years ended December 31,
(in thousands except per share data):	2019		2018		2017
Net loss	$	(142,734)	$	(76,220)	$	(75,556)
Less: accretion of preferred share issuance costs		(992)		(678)		(1,513)
Net loss attributable to common stockholders	$	(143,726)	$	(76,898)	$	(77,069)
Basic and diluted weighted average common share outstanding		386,793		381,821		142,451
Loss per share attributable to common shareholders:
Basic and diluted	$	(0.37)	$	(0.20)	$	(0.54)

Schedule of computation of diluted shares outstanding


	June 30, 2020	June 30, 2019
Warrants	2,327	3,783
Stock options	62,912	48,267
Total	65,239	52,050


	Years ended December 31,
	2019	2018	2017
Warrants	515	2,422	2,080
Stock options	135,823	111,877	61,562
Convertible Notes(a)	20,952	—	—
Total	157,290	114,299	63,642

Represents the conversion of the outstanding balance plus accrued interest divided by the stated conversion price of 3.31. These notes are contingently issuable as of December 31, 2019.

Commitments and Contingencies (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

Summary of future minimum lease payments

Future minimum lease payments are as follows:


Years ending December 31,
From July 1, 2020 to December 31, 2020	$	8,435
2021		15,668
2022		13,947
2023		13,637
2024		12,029
Thereafter		35,766
Total	$	99,482


Years ending December 31,
2020	$	10,067
2021		8,300
2022		8,374
2023		8,292
2024		7,310
Thereafter		23,685
Total	$	66,028

Summary of 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:


Years ending December 31,
From July 1, 2020 to December 31, 2020	$	24,439
2021		51,487
2022		28,959
2023		17,463
2024		8,150
Thereafter		15,400
Total	$	145,898

Summary of Significant Accounting Policies and Practices (Details) - USD ($) $ in Thousands			6 Months Ended	12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Net Income (Loss) Per Share
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	65,239	52,050		157,290	114,299	63,642
Receivables Reserved for Users
Provision for receivables reserved for users			$ 428	$ 0
Accounts Receivables
Provision for accounts receivables			$ 223	$ 0
Warrants
Net Income (Loss) Per Share
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	2,327	3,783		515	2,422	2,080

Summary of Significant Accounting Policies Property and Equipment Net (Details)	6 Months Ended	12 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Computer equipment and software
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	3 years	3 years
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	7 years	7 years
Minimum \| Leasehold improvements
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	1 year	1 year
Maximum \| Leasehold improvements
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	10 years	10 years

Summary of Significant Accounting Policies and Practices Finite Lived Intangible Asset (Details) - item	6 Months Ended	12 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Finite-Lived Intangible Assets [Line Items]
Number of reporting units	3
Developed Technology Rights [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated useful life	8 years
User relationships
Finite-Lived Intangible Assets [Line Items]
Estimated useful life	5 years
Internally developed software
Finite-Lived Intangible Assets [Line Items]
Estimated useful life		3 years
Trademarks and Trade Names [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated useful life	3 years
Minimum \| User relationships
Finite-Lived Intangible Assets [Line Items]
Estimated useful life		6 years
Minimum \| Internally developed software
Finite-Lived Intangible Assets [Line Items]
Estimated useful life	3 years
Maximum \| User relationships
Finite-Lived Intangible Assets [Line Items]
Estimated useful life		11 years
Maximum \| Internally developed software
Finite-Lived Intangible Assets [Line Items]
Estimated useful life	4 years

Summary of Significant Accounting Policies and Practices Schedule Of Equity Method Investments (Details)	Jun. 30, 2020
DKFS, LLC Member
Schedule of Equity Method Investments [Line Items]
Equity Method Investment, Ownership Percentage	46.00%

Summary of Significant Accounting Policies and Practices (Details) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Disaggregation of Revenue [Line Items]
Revenue recognized related to breakage	$ 107,000	$ 82,000	$ 200,000	$ 716,000	$ 1,179,000	$ 421,000	$ 1,800,000
Minimum
Disaggregation of Revenue [Line Items]
Entry fee			0
Maximum
Disaggregation of Revenue [Line Items]
Entry fee			$ 10,000

Business Combination (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands		6 Months Ended
	Apr. 23, 2020	Jun. 30, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Liabilities assumed:
Estimated goodwill (b) - (a)	$ 470,900	$ 480,578	$ 4,738	$ 4,738	$ 4,399
Amount allocated to goodwill	470,900	$ 480,578	4,738	$ 4,738	$ 4,399
Sbtech Member
Business Acquisition [Line Items]
Equity interest acquired		100.00%
Shares, options, and earnout shares issued for acquisition		45,017
Weighted average fair value		$ 17.53
Increase in consideration based on increase as defined in Business Combination Agreement		$ 10.17
Purchase consideration
Cash consideration(1)		$ 182,862
Share consideration(2)		789,065
Other cash consideration(3)		3,614
Total SBTech consideration	975,541	$ 975,541
Share consideration (in shares)		3,557
Share consideration excluding contingent consideration		$ 776,524
Contingent consideration for earnout shares issued to former stockholders		$ 12,541
Vested options		40,739
Contingent consideration for earnout shares issued to former stockholders (in shares)		720
Preliminary pending finalization of valuation analyses pertaining to intangible assets acquired and tax liabilities assumed
Cash and cash equivalents	9,639
Trade receivables	18,741
Other current assets	1,848
Property and equipment	10,677
Intangible assets	490,513
Other non-current assets	1,017
Total identifiable assets acquired	532,435
Liabilities assumed:
Accounts payable and accrued expenses	23,613
Other long-term liabilities	4,226
Total liabilities assumed	27,839
Net assets acquired (a)	504,596
Estimated purchase consideration (b)	975,541	$ 975,541
Estimated goodwill (b) - (a)	470,945
Amount allocated to goodwill	470,945
B2c Segments Member
Liabilities assumed:
Estimated goodwill (b) - (a)		353,083	4,738
Amount allocated to goodwill		353,083	$ 4,738
B2c Segments Member \| Sbtech Member
Liabilities assumed:
Estimated goodwill (b) - (a)	348,300
Amount allocated to goodwill	348,300
B2b Segments Member
Liabilities assumed:
Estimated goodwill (b) - (a)		127,495
Amount allocated to goodwill		$ 127,495
B2b Segments Member \| Sbtech Member
Liabilities assumed:
Estimated goodwill (b) - (a)	122,600
Amount allocated to goodwill	$ 122,600

Business Combination Finite Lived Intangible Assets (Details) - Sbtech Member $ in Thousands	6 Months Ended
	Jun. 30, 2020 USD ($)
Acquired Finite-Lived Intangible Assets [Line Items]
Acquired Finite-lived Intangible Asset, Residual Value	$ 490,513
Developed Technology Rights [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Acquired Finite-lived Intangible Asset, Residual Value	$ 392,028
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	8 years
User relationships
Acquired Finite-Lived Intangible Assets [Line Items]
Acquired Finite-lived Intangible Asset, Residual Value	$ 93,699
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	5 years
Trademarks and Trade Names [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Acquired Finite-lived Intangible Asset, Residual Value	$ 4,308
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	3 years
Licensing Agreements [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Acquired Finite-lived Intangible Asset, Residual Value	$ 478
Licensing Agreements [Member] \| Minimum
Acquired Finite-Lived Intangible Assets [Line Items]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	2 years
Licensing Agreements [Member] \| Maximum
Acquired Finite-Lived Intangible Assets [Line Items]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	3 years

Business Combination - Acquisition (Details) - Sbtech Member - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Business Acquisition [Line Items]
Transaction costs incurred	$ 25,300		$ 30,900
Amount of expense incurred related to equity issuance costs	41,400		41,400
Business Acquisition, Pro Forma Information [Abstract]
Net Revenue	74,998	$ 82,987	188,443	$ 175,941
Net Loss	$ (149,581)	$ (37,187)	(231,579)	$ (125,110)
Revenue since acquisition			15,000
Net loss since acquisition			$ 6,900

Property and Equipment (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
Property and Equipment (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Property, Plant and Equipment, Net, by Type [Abstract]
Property and Equipment	$ 47,774		$ 47,774		$ 32,949	$ 17,479
Accumulated depreciation	(10,772)		(10,772)		(7,004)	(3,377)
Property and Equipment, net	37,002		37,002		25,945	14,102
Depreciation expense	2,296	$ 1,149	3,740	$ 1,976	4,131	1,185	$ 1,934
Computer equipment and software
Property, Plant and Equipment, Net, by Type [Abstract]
Property and Equipment	19,676		19,676		9,685	5,537
Furniture and fixtures
Property, Plant and Equipment, Net, by Type [Abstract]
Property and Equipment	7,540		7,540		5,891	4,018
Leasehold improvements
Property, Plant and Equipment, Net, by Type [Abstract]
Property and Equipment	$ 20,558		$ 20,558		$ 17,373	$ 7,924

Intangible Assets and Goodwill Finite Lived Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Finite-Lived Intangible Assets, Net [Abstract]
Gross Carrying Amount	$ 583,847		$ 583,847		$ 55,756
Accumulated Amortization	(41,752)		(41,752)		(21,817)
Net	542,095		542,095		33,939	$ 16,876
Amortization expense	16,372	$ 2,125	$ 19,632	$ 4,223	$ 9,505	6,314	$ 4,367
Developed Technology Rights [Member]
Finite-Lived Intangible Assets, Net [Abstract]
Weighted-Average Remaining Amortization Period			7 years 9 months 26 days
Gross Carrying Amount	407,680		$ 407,680
Accumulated Amortization	(9,484)		(9,484)
Net	398,196		$ 398,196
Internally developed software
Finite-Lived Intangible Assets, Net [Abstract]
Weighted-Average Remaining Amortization Period			2 years 4 months 13 days		2 years 4 months 6 days
Gross Carrying Amount	55,109		$ 55,109		$ 43,753
Accumulated Amortization	(26,419)		(26,419)		(21,188)
Net	28,690		$ 28,690		$ 22,565	16,365
Licensing Agreements [Member]
Finite-Lived Intangible Assets, Net [Abstract]
Weighted-Average Remaining Amortization Period			4 years 7 months 13 days		4 years 10 months 10 days
Gross Carrying Amount	19,138		$ 19,138		$ 12,003
Accumulated Amortization	(1,944)		(1,944)		(629)
Net	17,194		$ 17,194		$ 11,374
Trademarks and Trade Names [Member]
Finite-Lived Intangible Assets, Net [Abstract]
Weighted-Average Remaining Amortization Period			2 years 9 months 26 days
Gross Carrying Amount	4,480		$ 4,480
Accumulated Amortization	(278)		(278)
Net	4,202		$ 4,202
User relationships
Finite-Lived Intangible Assets, Net [Abstract]
Weighted-Average Remaining Amortization Period			4 years 9 months 26 days
Gross Carrying Amount	97,440		$ 97,440
Accumulated Amortization	(3,627)		(3,627)
Net	$ 93,813		$ 93,813			$ 315

Intangible Assets and Goodwill (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2020	Dec. 31, 2018
Goodwill [Roll Forward]
Balance as of December 31, 2019	$ 4,738	$ 4,399
Goodwill acquired in SBTech Acquisition	470,945	339
Currency Translation Adjustment	4,895
Balance as of June 30, 2020	480,578	$ 4,738
B2c Segments Member
Goodwill [Roll Forward]
Balance as of December 31, 2019	4,738
Goodwill acquired in SBTech Acquisition	348,345
Balance as of June 30, 2020	353,083
B2b Segments Member
Goodwill [Roll Forward]
Goodwill acquired in SBTech Acquisition	122,600
Currency Translation Adjustment	4,895
Balance as of June 30, 2020	$ 127,495

Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019	Dec. 31, 2018
Accounts payable and accrued expenses
Accounts payable	$ 32,312	$ 16,618
Accrued compensation and related expenses	18,432	17,770	$ 9,857
Accrued marketing	22,681	11,855	3,237
Accrued professional fees	9,414	10,344
Accrued other expenses	40,107	28,708
Accounts Payable and Accrued Liabilities, Current, Total	$ 122,946	$ 85,295	$ 56,149

Current and Long-term Liabilities (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Current and Long-term Liabilities
Estimated contingent liability for indirect taxes	$ 40,907	$ 35,899
Decrease in rent expense due to the release of deferred rent liabilities	82
Short-term deferred rent liabilities	1,156	1,125
Long-term deferred rent liabilities	$ 9,634	$ 9,747

Stockholder's Equity (Details) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2020 USD ($) $ / shares shares	Jun. 30, 2020 USD ($) $ / shares shares	Jun. 30, 2019 USD ($)	Jun. 30, 2020 USD ($) item $ / shares shares	Jun. 30, 2019 USD ($)	Dec. 31, 2019 USD ($) Vote $ / shares shares	Dec. 31, 2018 USD ($)	Dec. 31, 2017 shares
Class of Stock [Line Items]
Number of votes per share \| Vote						1
Number of shares of common stock issued in conversion of debt \| shares								160,928,000
DEAC shares recapitalized, net of redemptions and equity issuance costs of $10,631		$ 665,485
DEAC shares recapitalized, Redemptions and equity issuance costs		10,631
Buyout of unaccredited investors				$ 7,192	$ 0
Proceeds from issuance of common stock				$ 620,800	$ 438	$ 439
Stock Issued During Period, Value, New Issues		$ 620,800	$ 438			$ 439	$ 340
Preferred stock, shares authorized \| shares	300,000	300,000		300,000
Preferred stock, par value \| $ / shares	$ 0.0001	$ 0.0001		$ 0.0001		$ 0.0001
Preferred stock, shares issued \| shares	0	0		0		0
Preferred stock, shares outstanding \| shares	0	0		0		0
Sbtech Member
Class of Stock [Line Items]
Recapitalization exchange ratio						0.353628	0.353628
Cash and other cash consideration				$ 186,477
Buyout of unaccredited investors				7,192
Net cash proceeds				$ 484,962
Series F Preferred Stock \| Sbtech Member
Class of Stock [Line Items]
Share conversion factor				1.40
Class A common stock
Class of Stock [Line Items]
DEAC shares recapitalized, net of redemptions and equity issuance costs of $10,631				$ 665,485
DEAC shares recapitalized, Redemptions and equity issuance costs				$ 10,631
Proceeds from issuance of common stock	$ 620,800
Stock Issued During Period, Value, New Issues	$ 16,000
Class A common stock \| Convertible Notes Payable [Member]
Class of Stock [Line Items]
Number of shares of common stock issued in conversion of debt \| shares				11,254,000
Class A common stock \| Sbtech Member
Class of Stock [Line Items]
Recapitalization exchange ratio				0.353628
Chief Executive Officer [Member]
Class of Stock [Line Items]
Number of votes per share \| item				10
Voting power of the capital stock held				90.00%
Principal amount of debt converted to equity securities				$ 109,165
Unpaid accrued interest related to debt converted to equity securities				$ 3,380
Share price \| $ / shares	$ 10	$ 10		$ 10
Chief Executive Officer [Member] \| Class B common stock
Class of Stock [Line Items]
Number of shares issued to sponsor \| shares				393,014,000

Revenue Recognition - Deferred Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Revenue Recognition
Deferred revenue, beginning of the period	$ 24,094	$ 14,074	$ 20,760	$ 13,581
Deferred revenue, end of the period	24,759	13,280	24,759	13,280
Revenue recognized in the period from amounts included in deferred revenue at the beginning of the period	$ 1,909	$ 2,386	$ 8,635	$ 6,661

Revenue Recognition - Revenue Disaggregation (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Disaggregation of Revenue [Line Items]
Total Revenue	$ 70,931	$ 57,390	$ 159,473	$ 125,482	$ 323,410	$ 226,277	$ 191,844
Online Gaming
Disaggregation of Revenue [Line Items]
Total Revenue	55,409	56,112	139,114	121,402	308,177
Gaming Software Member
Disaggregation of Revenue [Line Items]
Total Revenue	14,954		14,954
Other
Disaggregation of Revenue [Line Items]
Total Revenue	$ 568	$ 1,278	$ 5,405	$ 4,080	$ 15,233

Revenue Recognition - Revenue by Geographic Region (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Disaggregation of Revenue [Line Items]
Total Revenue	$ 70,931	$ 57,390	$ 159,473	$ 125,482	$ 323,410	$ 226,277	$ 191,844
United States
Disaggregation of Revenue [Line Items]
Total Revenue	56,577	55,120	147,387	122,290	$ 318,144	$ 219,415	$ 187,261
Non-US [Member]
Disaggregation of Revenue [Line Items]
Total Revenue	$ 14,354	$ 2,270	$ 12,086	$ 3,192

Stock-Based Compensation - Stock option activity (Details) $ / shares in Units, $ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2020 USD ($) item $ / shares shares	Jun. 30, 2019 USD ($) $ / shares shares	Dec. 31, 2019 USD ($) $ / shares shares	Dec. 31, 2018 USD ($) $ / shares shares	Dec. 31, 2017 USD ($) $ / shares shares	Dec. 31, 2016 USD ($) $ / shares shares
Number of Options
Outstanding at the beginning			135,822,000	111,877,000
Recapitalization Impact	(87,796,000)			(72,317,000)
Outstanding at the beginning	48,026,000	39,560,000	39,560,000
Granted	19,401,000	26,614,000
Exercised	(3,855,000)	(1,316,000)
Forfeited	(660,000)	(683,000)
Outstanding at the end	62,912,000	64,175,000	48,026,000	39,560,000
Vested	40,194,000
2020	7,066,000
2021	3,223,000
2022	11,390,000
Estimate of Expected to Vest	21,679,000
Effect of estimated forfeitures	1,039,000
Weighted-Average Exercise Price
Outstanding (in dollars per share) \| $ / shares			$ 1.01	$ 0.84
Recapitalization Impact (in dollars per share) \| $ / shares	$ 1.85			1.54
Outstanding (in dollars per share) \| $ / shares	2.86	$ 2.38	2.38
Granted (in dollars per share) \| $ / shares	0.61	4.70
Exercised (in dollars per share) \| $ / shares	1.61	0.96
Forfeited (in dollars per share) \| $ / shares	2.53	3.32
Outstanding at the end (in dollars per share) \| $ / shares	2.26	$ 2.82	$ 2.86	$ 2.38
Vested (in dollars per share) \| $ / shares	2.72
Estimate of Expected to Vest (in dollars per share) \| $ / shares	1.44
Effect of estimated forfeitures (in dollars per share) \| $ / shares	$ 1.56
Weighted Average Remaining Term (in Years) and aggregate Intrinsic Value
Outstanding (in years)	7 years 9 months 15 days	8 years 1 month 10 days	7 years 7 months 21 days	8 years 1 month 24 days
Vested (in years)	6 years 10 months 28 days
Estimate of Expected to Vest (in years)	9 years 3 months 29 days
Effect of estimated forfeitures (in years)	9 years 6 months 11 days
Outstanding at the end (in dollars) \| $	$ 1,968,051	$ 90,252	$ 203,431	$ 69,765
Vested (in dollars) \| $	1,225,735
Estimate of Expected to Vest (in dollars) \| $	708,362
Effect of estimated forfeitures (in dollars) \| $	$ 33,953
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of types of stock-based compensation \| item	3
Vesting period	4 years
Expiration period	10 years
Number of Options
Outstanding at the beginning	135,822	111,877	111,877	61,562	44,530
Granted			28,169	53,942	19,296
Exercised			(2,949)	(2,297)	(1,306)
Forfeited			(1,275)	(1,330)	(958)
Outstanding at the end			135,822	111,877	61,562	44,530
Weighted-Average Exercise Price
Outstanding (in dollars per share) \| $ / shares	$ 1.01	$ 0.84	$ 0.84	$ 0.51	$ 0.22
Granted (in dollars per share) \| $ / shares			1.65	1.18	1.17
Exercised (in dollars per share) \| $ / shares			0.41	0.25	0.15
Forfeited (in dollars per share) \| $ / shares			1.19	0.88	0.61
Outstanding at the end (in dollars per share) \| $ / shares			$ 1.01	$ 0.84	$ 0.51	$ 0.22
Weighted Average Remaining Term (in Years) and aggregate Intrinsic Value
Outstanding (in years)			7 years 7 months 21 days	8 years 1 month 24 days	8 years	8 years 2 months 27 days
Outstanding at the end (in dollars) \| $			$ 203,431	$ 69,765	$ 32,401	$ 30,680
Time Based Awards [Member]
Number of Options
Outstanding at the beginning			78,772,000	66,527,000
Recapitalization Impact	(50,919,000)			(43,003,000)
Outstanding at the beginning	27,853,000	23,524,000	23,524,000
Granted	4,331,000	14,861,000
Exercised	(2,732,000)	(1,285,000)
Forfeited	(656,000)	(636,000)
Outstanding at the end	28,796,000	36,464,000	27,853,000	23,524,000
Vested	21,147,000
2020	1,966,000
2021	3,223,000
2022	2,110,000
Estimate of Expected to Vest	7,299,000
Effect of estimated forfeitures	350,000
Performance Shares [Member]
Number of Options
Outstanding at the beginning			11,233,000	5,161,000
Recapitalization Impact	(7,261,000)			(3,336,000)
Outstanding at the beginning	3,972,000	1,825,000	1,825,000
Granted		6,263,000
Exercised	(520,000)	(31,000)
Forfeited	(4,000)	(47,000)
Outstanding at the end	3,448,000	8,010,000	3,972,000	1,825,000
Vested	3,448,000
Long Term Incentive Plan Member
Number of Options
Outstanding at the beginning			45,817,000	40,189,000
Recapitalization Impact	(29,616,000)			(25,978,000)
Outstanding at the beginning	16,201,000	14,211,000	14,211,000
Granted	15,070,000	5,490,000
Exercised	(603,000)
Outstanding at the end	30,668,000	19,701,000	16,201,000	14,211,000
Vested	15,599,000
2020	5,100,000
2022	9,280,000
Estimate of Expected to Vest	14,380,000
Effect of estimated forfeitures	689,000

Stock-Based Compensation - Stock compensation expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized stock-based compensation expense	$ 272,791		$ 272,791
Total unrecognized stock-based compensation expense expected to be recognized over a weighted-average period			2 years 8 months 27 days
Stock compensation expense	54,486	$ 1,844	$ 59,328	$ 6,675
Class B common stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock compensation expense	8,000		8,000
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized stock-based compensation expense					$ 19,769
Total unrecognized stock-based compensation expense expected to be recognized over a weighted-average period					2 years 11 days
Stock compensation expense					$ 17,614	$ 7,210	$ 4,500
Time Based Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock compensation expense	1,712	$ 1,844	3,346	3,611
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock compensation expense			1,633	$ 3,064
Long Term Incentive Plan Member
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock compensation expense	$ 44,774		$ 46,349

Income Taxes - Reconciliation of the federal income tax rate (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Reconciliation of the federal income tax rate to the Company's effective tax rate
Provisions for income taxes	$ 323	$ 7	$ 332	$ 16	$ 58	$ 105	$ 210
Statutory federal income tax rate	0.20%	0.03%	0.14%	0.03%	21.00%	21.00%	35.00%
State taxes, net of federal tax benefit			21.00%	21.00%

Segment Information (Details) $ in Thousands		3 Months Ended				6 Months Ended		12 Months Ended
Segment Information (Details) $ in Thousands	Apr. 23, 2020 segment	Jun. 30, 2020 USD ($)	Mar. 31, 2020 USD ($)	Jun. 30, 2019 USD ($)	Mar. 31, 2019 USD ($)	Jun. 30, 2020 USD ($)	Jun. 30, 2019 USD ($)	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)
Segment Reporting Information, Profit (Loss) [Abstract]
Total revenue		$ 70,931		$ 57,390		$ 159,473	$ 125,482	$ 323,410	$ 226,277	$ 191,844
Total adjusted EBITDA		(57,495)		(21,101)		(106,956)	(41,516)
Depreciation and amortization		18,668		3,274		23,372	6,199
Interest (income) expense, net		588		(426)		2,939	(1,087)	(1,348)	(666)	1,541
Income tax provision		323		7		332	16	58	105	210
Stock-based compensation		54,486		1,844		59,328	6,675	17,613	7,210	4,500
Transaction-related costs		25,255		1,276		30,907	1,276
Litigation, settlement and related costs		2,022		814		3,352	1,701
Other non-recurring costs and special project costs		2,517		223		2,646	1,371
Non-operating costs		(83)				(285)				(607)
Net income (loss)		(161,437)	$ (68,680)	(28,113)	$ (29,554)	(230,117)	(57,667)	$ (142,734)	$ (76,220)	$ (75,556)
B2c Segments Member
Segment Reporting Information [Line Items]
Number of operating segments \| segment	2
Segment Reporting Information, Profit (Loss) [Abstract]
Total revenue		55,977		57,390		144,519	125,482
Total adjusted EBITDA		(53,973)		$ (21,101)		(103,434)	$ (41,516)
B2b Segments Member
Segment Reporting Information [Line Items]
Number of reportable segments \| segment	2
Segment Reporting Information, Profit (Loss) [Abstract]
Total revenue		14,954				14,954
Total adjusted EBITDA		$ (3,522)				$ (3,522)

Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended				6 Months Ended		12 Months Ended
	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Loss Per Share
Net loss	$ (161,437)	$ (68,680)	$ (28,113)	$ (29,554)	$ (230,117)	$ (57,667)	$ (142,734)	$ (76,220)	$ (75,556)
Basic and diluted weighted-average common shares outstanding	291,992,000		184,723,000		238,104,000	184,234,000	386,793	381,821	142,451
Loss per share attributable to common stockholders:
Basic and diluted	$ (0.55)		$ (0.15)		$ (0.97)	$ (0.31)	$ (0.37)	$ (0.20)	$ (0.54)

- 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			12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	65,239	52,050	157,290	114,299	63,642
Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	2,327	3,783	515	2,422	2,080
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	62,912	48,267	135,823	111,877	61,562
Convertible Notes
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total			20,952

Related Party Transactions (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2021
Related Party Transaction [Line Items]
Total commitment	$ 145,898		$ 145,898
Administrative Services Agreement
Total administrative services expenses	11,748	$ 0	12,349	$ 0
Majority Shareholder [Member]
Related Party Transaction [Line Items]
Payable to shareholder	1,593		1,593
Sb Tech Member
Related Party Transaction [Line Items]
Accounts receivable	579		579		$ 0
Sponsor Loans
Related party transactions		0		0
Media Purchase Agreement
Related Party Transaction [Line Items]
Annual commitment							$ 15,000
Additional contingent commitment	5,000		5,000				$ 5,000
Total commitment	15,000		15,000
Sales and marketing expenses from related party transaction	1,241	$ 88	3,400	$ 2,216	8,411	$ 23,313
Amount due to related party	1,563		1,563		2,413	$ 428
Equity Method Investee [Member]
Related Party Transaction [Line Items]
Receivables from Equity Method Investment	$ 1,080		$ 1,080		$ 959

Commitments and Contingencies (Details) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
Commitments and Contingencies (Details) - USD ($)	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Other Commitments [Line Items]
Rent expenses	$ 4,702	$ 2,406	$ 7,785	$ 4,597	$ 10,412,000	$ 5,266,000	$ 3,431,000
Letter of Credit [Member] \| Pacific Western Bank
Other Commitments [Line Items]
Letters of Credit Outstanding, Amount	$ 5,053,000		$ 5,053,000		$ 4,481,000	$ 4,481,000

Commitments and Contingencies - Future minimum lease payments (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
From July 1, 2020 to December 31, 2020	$ 8,435
2021	15,668	$ 8,300
2022	13,947	8,374
2023	13,637	8,292
2024	12,029	7,310
Thereafter	35,766	23,685
Total	$ 99,482	$ 66,028

Commitments and Contingencies - Other Contractual Obligations and Contingencies (Details) $ in Thousands	Jun. 30, 2020 USD ($)
Other Contractual Obligations and Contingencies
From July 1, 2020 to December 31, 2020	$ 24,439
2021	51,487
2022	28,959
2023	17,463
2024	8,150
Thereafter	15,400
Total	$ 145,898

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Current assets:
Cash	$ 76,533	$ 117,908
Cash reserved for users	144,000	111,698
Receivables reserved for users	19,828	21,334
Prepaid expenses and other current assets	20,787	11,233
Total current assets	261,148	262,173
Property and equipment, net	25,945	14,102
Intangible assets, net	33,939	16,876
Goodwill	4,738	4,738
Equity method investment	2,521
Deposits	2,434	1,504
Total assets	330,725	299,393
Current liabilities:
Accounts payable and accrued expenses	85,295	56,149
Liabilities to users	163,035	132,769
Term note	6,750	3,750
Settlement liability		3,272
Total current liabilities	255,080	195,940
Convertible promissory notes	68,363
Other long-term liabilities	56,862	27,403
Total liabilities	380,305	223,343
Commitments and contingencies (note 13)
Redeemable convertible preferred stock:
Total redeemable convertible preferred stock	258,371	261,277
Stockholders' deficit:
Common stock, $0.001 par value; 735,000 shares authorized as at March 31, 2020 and December 31, 2019; 390,900 and 389,610 shares issued and outstanding at March 31, 2020 and December 31, 2019, respectively	390	384
Additional paid-in capital	690,443	670,439
Accumulated deficit	(998,784)	(856,050)
Total stockholders' equity (deficit)	(307,951)	(185,227)
Total liabilities and stockholders' equity (deficit)	330,725	299,393
Series E-1 redeemable convertible preferred stock
Redeemable convertible preferred stock:
Total redeemable convertible preferred stock	119,752	119,427
Series F redeemable convertible preferred stock
Redeemable convertible preferred stock:
Total redeemable convertible preferred stock	$ 138,619	$ 141,850

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Redeemable convertible preferred stock, shares authorized	133,346	133,346
Redeemable convertible preferred stock, shares issued	110,250	111,969
Common shares, par value	$ 0.001	$ 0.001
Common shares, shares authorized	735,000	735,000
Common shares, shares issued	389,610	384,009
Common shares, shares outstanding	389,610	384,009
Series E-1 redeemable convertible preferred stock
Redeemable convertible preferred stock, par value	$ 0.001	$ 0.001
Redeemable convertible preferred stock, shares authorized	54,901	54,901
Redeemable convertible preferred stock, shares issued	54,901	54,901
Redeemable convertible preferred stock, shares outstanding	54,901	54,901
Redeemable convertible preferred stock, liquidation preference	$ 120,943
Series F redeemable convertible preferred stock
Redeemable convertible preferred stock, par value	$ 0.001	$ 0.001
Redeemable convertible preferred stock, shares authorized	78,445	78,445
Redeemable convertible preferred stock, shares issued	55,349	57,068
Redeemable convertible preferred stock, shares outstanding	55,349	57,068
Redeemable convertible preferred stock, liquidation preference	$ 141,117	$ 145,499

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Total Revenue	$ 323,410	$ 226,277	$ 191,844
Cost of revenue	103,889	48,689	31,750
Sales and marketing	185,269	145,580	156,632
Product and technology	55,929	32,885	20,212
General and administrative	124,868	75,904	56,448
Loss from operations	(146,545)	(76,781)	(73,198)
Other income (expense):
Interest income (expense), net	1,348	666	(1,541)
Gain on initial equity method investment	(3,000)
Other expense, net			607
Loss before income tax provision and loss from equity method investment	(142,197)	(76,115)	(75,346)
Income tax provision	(58)	(105)	(210)
Loss from equity method investment	479
Net loss attributable to common stockholders	$ (142,734)	$ (76,220)	$ (75,556)
Loss per share attributable to common stockholders:
Basic and diluted (in dollars per share)	$ (0.37)	$ (0.20)	$ (0.54)

CONSOLIDATED STATEMENTS OF REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' DEFICIT - USD ($) $ in Thousands	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Redeemable Convertible Preferred Stock	Series E-1 redeemable convertible preferred stock	Series E Preferred Stock	Series F Preferred Stock	Series D Redeemable Convertible Preferred Stock	Total
Balance at the beginning at Dec. 31, 2016	$ 22	$ 3,998	$ (704,274)	$ 490,971					$ (700,254)
Balance at the beginning (in shares) at Dec. 31, 2016	22,291			184,499
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Conversion of Debt to Series E Preferred Stock						$ 160,928
Conversion of Debt to Series E Preferred Stock (in shares)						103,077
Issuance of Series Preferred Stock					$ 118,623
Issuance of Series Preferred Stock (in shares)					54,901
Issuance of Series D Redeemable Convertible Preferred Stock for In-kind Transfer								$ 1,077
Issuance of Series D Redeemable Convertible Preferred Stock for In-kind Transfer (in shares)								714
Conversion of Preferred Stock to Common Stock	$ 354	653,749		$ (654,103)					654,103
Conversion of Preferred Stock to Common Stock (in shares)	353,850			(288,290)
Exercise of Stock Options	$ 1	179							180
Exercise of Stock Options (in shares)	1,233
Issuance of Common Stock for In-kind Transfer	$ 3	172							175
Issuance of Common Stock for In-kind Transfer (in shares)	2,558
Accretion of Preferred Stock Issuance Cost				$ 1,513
Accretion of Preferred Stock Issuance Cost		(1,513)							(1,513)
Stock-Based Compensation Expense		4,500							4,500
Net loss			(75,556)						(75,556)
Balance at the end at Dec. 31, 2017	$ 380	661,085	(779,830)	$ 119,009					(118,365)
Balance at the end (in shares) at Dec. 31, 2017	379,932			54,901
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of Series Preferred Stock							$ 141,590
Issuance of Series Preferred Stock (in shares)							57,068
Exercise of Stock Options	$ 2	550							552
Exercise of Stock Options (in shares)	2,385
Common Stock Issued	$ 1	339							340
Shares issued in Offering, net of issuance costs (in shares)	393
Issuance of Common Stock for In-kind Transfer	$ 1	1,933							1,934
Issuance of Common Stock for In-kind Transfer (in shares)	1,299
Accretion of Preferred Stock Issuance Cost				$ 678
Accretion of Preferred Stock Issuance Cost		(678)							(678)
Stock-Based Compensation Expense		7,210							7,210
Net loss			(76,220)						(76,220)
Balance at the end at Dec. 31, 2018	$ 384	670,439	(856,050)	$ 261,277					$ (185,227)
Balance at the end (in shares) at Dec. 31, 2018	384,009			111,969
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of Stock Options (in shares)									1,316,000
Net loss									$ (57,667)
Balance at the end at Jun. 30, 2019		948,603	(913,717)						34,905
Balance at the beginning at Dec. 31, 2018	$ 384	670,439	(856,050)	$ 261,277					(185,227)
Balance at the beginning (in shares) at Dec. 31, 2018	384,009			111,969
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of Series Preferred Stock							$ 7,824
Issuance of Series Preferred Stock (in shares)							2,879
Exercise of Stock Options	$ 3	1,145							1,148
Exercise of Stock Options (in shares)	2,873
Common Stock Issued	$ 2	437							439
Shares issued in Offering, net of issuance costs (in shares)	1,906
Issuance of Common Stock for In-kind Transfer	$ 1	1,363							1,364
Issuance of Common Stock for In-kind Transfer (in shares)	822
Repurchase of Preferred Stock and Issuance of Promissory Note				$ (11,722)
Repurchase of Preferred Stock and Issuance of Promissory Note (in shares)				(4,598)
Accretion of Preferred Stock Issuance Cost				$ 992
Accretion of Preferred Stock Issuance Cost		(992)							(992)
Stock-Based Compensation Expense		17,613							17,613
Issuance of warrants		438							438
Net loss			(142,734)						(142,734)
Balance at the end at Dec. 31, 2019	$ 390	690,443	(998,784)	$ 258,371					(307,951)
Balance at the end (in shares) at Dec. 31, 2019	389,610			110,250
Balance at the beginning at Jan. 01, 2019		932,081	(856,050)						76,050
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of Stock Options		126							126
Stock-Based Compensation Expense		4,831							4,831
Net loss			(29,554)						(29,554)
Balance at the end at Mar. 31, 2019		944,283	(885,604)						58,698
Balance at the end at Mar. 31, 2019		944,283	(885,604)						58,698
Balance at the end at Dec. 31, 2019	$ 390	690,443	(998,784)	$ 258,371					(307,951)
Balance at the end (in shares) at Dec. 31, 2019	389,610			110,250
Balance at the beginning at Mar. 31, 2019		944,283	(885,604)						58,698
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of Stock Options		407							407
Common Stock Issued		438							438
Issuance of Common Stock for In-kind Transfer		535							535
Stock-Based Compensation Expense		1,844							1,844
Net loss			(28,113)						(28,113)
Balance at the end at Jun. 30, 2019		948,603	(913,717)						34,905
Balance at the beginning at Dec. 31, 2019	$ 390	690,443	(998,784)	$ 258,371					(307,951)
Balance at the end at Mar. 31, 2020		965,495	(1,067,464)						(101,951)
Balance at the beginning at Dec. 31, 2019	$ 390	690,443	(998,784)	$ 258,371					$ (307,951)
Balance at the beginning (in shares) at Dec. 31, 2019	389,610			110,250
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of Stock Options (in shares)									3,855,000
Net loss									$ (230,117)
Balance at the end at Jun. 30, 2020		3,395,129	(1,228,901)						2,191,288
Balance at the beginning at Jan. 01, 2020		949,186	(998,784)						(49,580)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of Stock Options		467							467
Stock-Based Compensation Expense		4,842							4,842
Net loss			(68,680)						(68,680)
Balance at the end at Mar. 31, 2020		965,495	(1,067,464)						(101,951)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Conversion of Debt to Series E Preferred Stock		112,544							112,545
Exercise of Stock Options		5,599							5,599
Common Stock Issued		620,798							620,800
Stock-Based Compensation Expense		54,447							54,486
Net loss			(161,437)						(161,437)
Balance at the end at Jun. 30, 2020		$ 3,395,129	$ (1,228,901)						$ 2,191,288

CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Cash flows from operating activities:
Net loss	$ (142,734)	$ (76,220)	$ (75,556)
Adjustments to reconcile net loss to cash used in operating activities:
Depreciation and amortization	13,636	7,499	6,301
Non-cash rent expense	377	37	(120)
Non-cash interest expense	424	31	1,487
Stock-based compensation expense, including value of Class B common shares	17,613	7,210	4,500
Advertising expense paid through issuance of common stock and warrants	1,802	1,934	1,252
Amortization of debt discount			141
Gain on derivative fair value adjustment			(184)
Loss on exit activities	179		877
Loss on disposal of assets	730		185
Loss on conversion of promissory notes			650
Loss from equity method investment	479
Gain on initial equity method investment	(3,000)
Deferred income taxes	54	19	145
Changes in operating assets and liabilities:
Cash reserved for users	(32,302)	(22,633)	(17,346)
Receivables reserved for users	1,506	(4,087)	5,680
Prepaid expenses and other current assets	(9,554)	(2,214)	(4,175)
Deposits	(930)	728	(133)
Accounts payable and accrued expenses	27,946	5,699	(29,793)
Other long-term liabilities	18,028	12,068	5,307
Settlement liability	(3,400)	(2,212)	783
Liabilities to users	30,266	26,562	11,562
Net cash flows used in operating activities	(78,880)	(45,579)	(88,437)
Cash Flows from Investing Activities:
Purchases of property and equipment	(16,703)	(13,683)	(599)
Capitalization of internal-use software costs	(14,816)	(12,738)	(7,116)
Acquisition of state licenses	(10,752)	(251)
Net cash flows used in investing activities	(42,271)	(26,672)	(7,715)
Cash Flows from Financing Activities:
Net proceeds from term note	3,000
Repayment of notes payable		(1,250)
Proceeds from issuance of common stock	439
Net cost due to conversion of Series E Stock			(272)
Net proceeds from issuance of convertible promissory notes	68,087
Proceeds from exercise of stock options	1,148	552	180
Net cash flows provided by financing activities	79,776	140,892	118,531
Net Increase (Decrease) in Cash	(41,375)	68,641	22,379
Cash and cash equivalents at the beginning of period	117,908	49,267	26,888
Cash and cash equivalents, end of period	76,533	117,908	49,267
Supplemental Disclosure of Noncash Investing and Financing Activities
Non-cash redemption of Series F redeemable convertible preferred to stock through issuance of promissory notes	11,000
Accretion of Series E-1 and F Redeemable Convertible Preferred Stock	992	678	1,513
Conversion of Series A through E of preferred stock to common stock			$ 654,103
Conversion of convertible notes into preferred stock			160,928
Common stock issued		340
Acquisition of state licenses included in accounts payable and accrued expenses	1,000
Supplemental Disclosure of Cash Activities
Cash paid for interest	260	261	$ 285
Series E-1 redeemable convertible preferred stock
Cash Flows from Financing Activities:
Net proceeds due to issuance of Redeemable Convertible Preferred Stock			$ 118,623
Series F redeemable convertible preferred stock
Cash Flows from Financing Activities:
Net proceeds due to issuance of Redeemable Convertible Preferred Stock	7,824	$ 141,590
Repurchase of Redeemable Convertible Preferred Stock	$ (722)

Description of Business	12 Months Ended
Description of Business	Dec. 31, 2019
Description of Business
Description of Business	1. Description of Business DraftKings Inc. (the “Company” or “DraftKings”) was incorporated in Delaware on December 31, 2011. The Company provides online and retail sports wagering offerings, online daily fantasy sports contests, and online casino games. The Company is headquartered in Boston, MA. The Company began accepting users in the United States and Canada in 2012. The Company began accepting users in the United Kingdom in 2016, and in Germany, Malta, Netherlands, Ireland, and Austria in 2017 and in Australia in 2018. From 2015 through 2017, the daily fantasy sports industry was subject to government inquiries in the United States. State Attorneys General in Delaware, Georgia, Hawaii, Illinois, Maryland, Mississippi, Nevada, New York, Ohio, Rhode Island, Tennessee, Texas and West Virginia issued advisory opinions regarding the legality of daily fantasy sports in their respective states. As of February 20, 2020, the Company had reached agreements with the Attorneys General of Alabama, Hawaii and Idaho to suspend offering paid contests to individuals physically present at the time of contest entry in those states until such time a legislative solution is reached. A law authorizing fantasy sports was enacted by the Alabama legislature this year and DraftKings reentered the state to offer paid fantasy sports contests on June 18, 2019. The Company has suspended permitting participation in paid contests from Nevada and is currently seeking judicial clarifications with respect to offering paid contests to individuals in Texas, while continuing to permit participation from that state. Due to the Company’s interpretation of existing laws in Arizona, Louisiana, Montana, and Washington, the Company has not historically permitted individuals in those states to participate in paid contests. In April 2019, the Iowa legislature passed a bill to legalize fantasy sports and, in May 2019, the bill was signed into law by the Governor of Iowa. DraftKings launched paid fantasy sports contests in Iowa on October 24, 2019. Laws defining fantasy sports contests as games of skill and requiring certain consumer protections have been enacted in New York, Mississippi, Massachusetts, Virginia, Missouri, Indiana, Colorado, Kansas, Maryland, Arkansas, Tennessee, New Jersey, Delaware, New Hampshire, Vermont, Maine, Connecticut, Ohio, Alabama, Pennsylvania, Iowa, and Michigan. Of the remaining 20 states (and Washington, D.C.) that the Company operates in, two states (Kentucky and Nebraska) and one state the Company does not currently operate in (Arizona) have introduced legislation to authorize and regulate fantasy sports. Two states currently enjoy positive legal opinions from the states Attorneys General (West Virginia and Rhode Island). 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, states have moved quickly to legalize and regulate sports betting. U.S. jurisdictions with statutes legalizing statewide online sports betting as of December 31, 2019 are Nevada, New Jersey, West Virginia, Delaware, Pennsylvania, Indiana, Iowa, Tennessee, New Hampshire, Washington, D.C, and Rhode Island. States with current or in process statutes for online gaming are Colorado, Illinois, Indiana, Iowa, Nevada, New Hampshire, New Jersey, Oregon, Pennsylvania, Rhode Island, Tennessee, Washington, D.C. and West Virginia. Colorado enacted a law that became effective after approval by voters in a referendum in November 2019. States authorizing and regulating sports betting at specific retail locations are Nevada, New York, North Carolina, Illinois, Iowa, Indiana, New Hampshire, Washington, D.C., New Jersey, West Virginia, Mississippi, Rhode Island, Delaware, Pennsylvania, Arkansas and Colorado. Some states have passed laws authorizing sports wagering on the Internet or in retail locations, but no operators are offering live betting yet. The Company currently operates Internet sports betting in Indiana, Iowa, New Hampshire, New Jersey Pennsylvania, and West Virginia. The Company has retail sportsbooks in Mississippi, New York, New Jersey and at three locations in Iowa. The Company also has multi-state agreements in place to expand operations upon the passing of the appropriate laws and regulations and the receipt of the appropriate license. The Company launched an online casino product in New Jersey in December 2018. Recently, the outbreak of the novel coronavirus (“COVID‑19”) has adversely impacted global commercial activity and contributed to significant declines and volatility in financial markets. The COVID‑19 pandemic and government responses are creating disruption in global supply chains and adversely impacting many industries. The outbreak 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 ultimate material adverse impact of COVID‑19. Nevertheless, COVID‑19 presents material uncertainty and risk with respect to the Company, its performance, and its financial results and could adversely affect the Company’s financial information.

Summary of Significant Accounting Policies and Practices

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

Summary of Significant Accounting Policies and Practices

Summary of Significant Accounting Policies and Practices

2.Summary of Significant Accounting Policies and Practices

Basis of Presentation and Principles of Consolidation

The accompanying unaudited condensed consolidated financial statements include the accounts and operations of the Company. All intercompany accounts and transactions have been eliminated.

Comprehensive Income (Loss)

Foreign Currency

Use of Estimates

Going Concern

Emerging Growth Company

Concentrations of Credit Risk

Acquisitions

Cash and cash equivalents

Cash Reserved for Users

Receivables Reserved for Users

Accounts Receivables

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

The Company’s intangible assets consist of Developed Technology, Customer Relationships, Internally-Developed Software, Gaming Licenses and Trademarks and Tradenames.

Developed Technology

Customer Relationships

Internally Developed Software

Gaming Licenses

Trademarks and Tradenames

Goodwill

Impairment of Long-Lived Assets

Equity Method Investment

Leases

Liabilities to Users

Revenue Recognition

The Company determines revenue recognition through the following steps:

· Identifying the contract, or contracts, with the customer;

· Identifying the performance obligations in the contract;

· Determining the transaction price;

· Allocating the transaction price to performance obligations in the contract; and

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

Online Gaming

Gaming software

Transaction Price Considerations

Variable Consideration

Allocation of transaction price to performance obligations

Certain costs to obtain or fulfill contracts

Contract balances

Cost of Revenue

Sales and Marketing

Product and Technology

General and Administrative

Stock-based Compensation

Income Taxes

Fair Value Measurements

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

Earnings (loss) per share

Recently Adopted Accounting Pronouncements

Recent Accounting Pronouncements Not Yet Adopted

2. Summary of Significant Accounting Policies and Practices

Basis of Presentation and Principles of Consolidation

Going Concern

Emerging Growth Company

Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies, but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period, which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s consolidated financial statements with another public company which is neither an emerging growth company nor an emerging growth company, which has opted out of using the extended transition period, difficult or impossible because of the potential differences in accounting standards used.

Use of Estimates

Acquisitions

The Company accounts for business combinations under the acquisition method of accounting, in accordance with Accounting Standards Codification (“ASC”) Topic 805, Business Combinations, which requires assets acquired and liabilities assumed to be recognized at their fair values on the acquisition date. Any excess of the fair value of purchase consideration over 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 involves management making significant estimates and assumptions.

Cash

Cash includes highly liquid checking and instant access internet banking accounts which are owned by the Company.

Cash Reserved for Users

Receivables Reserved for Users

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

User Relationships

Internally Developed Software

State Licenses

Goodwill

Impairment of Long-Lived Assets

Equity Method Investment

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, dividends received, capital contributions and distributions and impairment losses. The Company performs a qualitative assessment quarterly and recognizes an impairment if there are sufficient indicators that the fair value of the investment is less than carrying value.

Deposits

Liabilities to Users

Concentrations of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of operating cash and cash reserved for users. The Company maintains cash and cash reserves for users primarily across five financial institutions; however, the vast majority is held with one financial institution within separate bank accounts, which management believes to be of a high credit quality, in amounts that exceed federally insured limits. The Company does not believe that it is subject to unusual credit risk beyond the normal credit risk associated with commercial banking relationships.

Leases

The Company accounts for leases under the provisions of ASC Topic 840, Leases, which requires that leases be evaluated and classified as operating or capital leases for financial reporting purposes. The terms used for the evaluation include renewal option periods in instances in which the exercise of the renewal option can be reasonably assured and failure to exercise such option would result in an economic penalty. Leases are classified as capital leases whenever the terms of the lease transfer substantially all of the risks and rewards of ownership to the lessee. All other leases are recorded as operating leases. As of December 31, 2019 and 2018, all of the Company’s leases were operating leases.

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 other long-term liabilities in the consolidated balance sheets.

Revenue Recognition

The Company determines revenue recognition through the following steps:

Identifying the contract, or contracts, with the customer;

Identifying the performance obligations in the contract;

Determining the transaction price;

Allocating the transaction price to performance obligations in the contract; and

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

Transaction Price Considerations

Certain costs to obtain or fulfill contracts

Contract balances

Refer to Note 15 for further information, including changes in deferred revenue during the period.

Cost of Revenue

Sales and Marketing

Product and Technology

General and Administrative

Advertising and Promotion Costs

Stock-based Compensation

The Company measures compensation expense for stock options and other stock awards in accordance with ASC Topic 718, Compensation — Stock Compensation. Stock-based compensation is measured at fair value on the grant date and recognized as compensation expense over the requisite service period. Generally, the Company issues stock options to employees with service-based, market based, 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. For awards with performance-based vesting conditions, the Company recognizes compensation cost on a tranche- by tranche basis (the accelerated attribution method).

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 the financial statements and tax bases 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 provision. 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.

Fair Value Measurements

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

Earnings (loss) per share

Recently Adopted Accounting Pronouncements

Recent Accounting Pronouncements Not Yet Adopted

Property and Equipment

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

Property and Equipment

4.Property and Equipment

Property and equipment, net consists of the following:


	June 30, 2020		December 31, 2019
Computer equipment and software	$	19,676	$	9,685
Furniture and fixtures		7,540		5,891
Leasehold improvements		20,558		17,373
Property and Equipment		47,774		32,949
Accumulated depreciation		(10,772)		(7,004)
Property and Equipment, net	$	37,002	$	25,945

3. Property and Equipment

Property and equipment, net consists of the following:


	December 31,
	2019		2018
Computer equipment and software	$	9,685	$	5,537
Furniture and fixtures		5,891		4,018
Leasehold improvements		17,373		7,924
Property and Equipment		32,949		17,479
Accumulated depreciation		(7,004)		(3,377)
Property and Equipment, net	$	25,945	$	14,102

Depreciation expense on property and equipment was $4,131, $1,185 and $1,934 during the years ended December 31, 2019, 2018 and 2017, respectively.

Intangible Assets and Goodwill

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

Intangible Assets and Goodwill

5.Intangible Assets and Goodwill

Intangible Assets

The Company has the following intangible assets, net at June 30, 2020:


	Weighted-
	Average
	Remaining	Gross
	Amortization	Carrying		Accumulated
	Period	Amount		Amortization		Net
Developed Technology	7.82 years	$	407,680	$	(9,484)	$	398,196
Internally developed software	2.37 years		55,109		(26,419)		28,690
Gaming Licenses	4.62 years		19,138		(1,944)		17,194
Trademarks and tradenames	2.82 years		4,480		(278)		4,202
Customer relationships	4.82 years		97,440		(3,627)		93,813
Intangible Assets, net		$	583,847	$	(41,752)	$	542,095

The Company has the following intangible assets, net at December 31, 2019:


	Weighted-
	Average
	Remaining	Gross
	Amortization	Carrying		Accumulated
	Period	Amount		Amortization		Net
Internally developed software	2.35 years	$	43,753	$	(21,188)	$	22,565
Gaming Licenses	4.86 years		12,003		(629)		11,374
Intangible Assets, net		$	55,756	$	(21,817)	$	33,939

Amortization expense was $16,372 and $19,632 for the three and six months ended June 30, 2020 and $2,125 and $4,223 for the three and six months ended June 30, 2019, respectively.

Goodwill

The changes in the carrying amount of goodwill for the six months ended June 30, 2020 by segment (refer to Note 12 for segment definitions) are:


	B2C		B2B		Total
Balance as of December 31, 2019	$	4,738	$	—	$	4,738
Goodwill acquired in SBTech Acquisition*		348,345		122,600		470,945
Currency Translation Adjustment		—		4,895		4,895
Balance as of June 30, 2020	$	353,083	$	127,495	$	480,578

* = Preliminary allocation

4. Intangible Assets and Goodwill

The Company has the following intangible assets, net at December 31, 2019:


	Weighted-
	Average	Gross
	Amortization	Carrying		Accumulated
	Period	Amount		Amortization		Net
User relationships	—	$	3,328	$	(3,328)	$	—
Internally developed software	2.35 years		43,753		(21,188)		22,565
State licenses	4.86 years		12,003		(629)		11,374
Intangible Assets, net		$	59,084	$	(25,145)	$	33,939

The Company has the following intangible assets, net at December 31, 2018:


	Weighted-
	Average	Gross
	Amortization	Carrying		Accumulated
	Period	Amount		Amortization		Net
User relationships	0.5 years	$	3,328	$	(3,013)	$	315
Internally developed software	2.45 years		28,937		(12,572)		16,365
State licenses	0.75 years		251		(55)		196
Intangible Assets, net		$	32,516	$	(15,640)	$	16,876

The Company recorded amortization expense of $9,505, $6,314 and $4,367 for the years ended December 31, 2019, 2018 and 2017, respectively.

At December 31, 2019, estimated future amortization of intangible assets is as follows:


Year ending December 31,
2020	$	13,048
2021		10,250
2022		6,241
2023		2,200
2024 and thereafter		2,200
Total	$	33,939

Goodwill

The changes in the carrying amount of goodwill for the years ended December 31, 2019 and 2018 are as follows:


Balance as of December 31, 2017	$	4,399
Goodwill acquired		339
Balance as of December 31, 2018	$	4,738
Goodwill acquired		—
Balance as of December 31, 2019	$	4,738

Accounts Payable and Accrued Expenses

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

Accounts Payable and Accrued Expenses

Accounts Payable and Accrued Expenses

6.Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses consist of the following:


	June 30, 2020		December 31, 2019
Accounts payable	$	32,312	$	16,618
Accrued compensation and related expenses		18,432		17,770
Accrued marketing		22,681		11,855
Accrued professional fees		9,414		10,344
Accrued other expenses		40,107		28,708
Total	$	122,946	$	85,295

5. Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses consist of the following:


	December 31,
	2019		2018
Accounts payable	$	16,618	$	11,626
Accrued payroll and related expenses		17,770		9,857
Accrued litigation, lobbying and compliance		6,153		5,566
Accrued loyalty points		4,131		7,272
Accrued marketing fees		11,855		3,237
Accrued operating taxes		5,745		2,741
Accrued partnership fees		7,868		4,340
Accrued professional fees		4,191		1,978
Accrued software and licenses		1,589		2,263
Accrued other		9,375		7,269
Total	$	85,295	$	56,149

Current and Long-term Liabilities	6 Months Ended	12 Months Ended
Current and Long-term Liabilities	Jun. 30, 2020	Dec. 31, 2019
Current and Long-term Liabilities
Current and Long-term Liabilities	7.Current and Long-term Liabilities Indirect Taxes Taxation of e-commerce is becoming more prevalent and could negatively affect the Company’s business 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 June 30, 2020, and December 31, 2019, the Company’s estimated contingent liability for indirect taxes was $40,907 and $35,899, respectively. This is recorded within other long-term liabilities on the condensed consolidated balance sheets and general and administrative expenses in the condensed consolidated statements of operations. Deferred Rent In conjunction with certain leased office facilities, the Company has received cash payments from landlords to fund tenant directed leasehold improvements. These payments are recorded as deferred rent and reported in accounts payable and accrued expenses and other long-term liabilities within the condensed consolidated balance sheets. These amounts are released ratably over the lease term, with an offset to rent expense. For the six months ended June 30, 2020, rent expense has been reduced by $82 due to the release of deferred rent liabilities. At June 30, 2020, the short-term and long-term deferred rent liabilities were $1,156 and $9,634, respectively. At December 31, 2019, the short-term and long-term deferred rent liabilities were $1,125 and $9,747, respectively.	6. Current and Long-term Liabilities Term Note 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 August 2019 (as amended, the “Credit Agreement”). The Credit Agreement provides a revolving line of credit of up to $50,000. The Credit Agreement has a maturity date of September 15, 2020. As of December 31, 2019 and 2018, the Credit Agreement provided a revolving line of credit of up to $50,000 and $40,000, respectively. Principal amounts outstanding under the Credit Agreement totaled $6,750 and $3,750 as of December 31, 2019 and 2018, respectively. Net facility available from the Credit Agreement as of December 31, 2019 and 2018 totaled $38,769 and $31,769, respectively, which exclude the letters of credit outlined in Note 13. 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. Upon the earlier of (i) an Acquisition, as defined in the Credit Agreement, or (ii) the closing of an initial public offering, in either case, the Company will also be required to pay a success fee to Pacific Western Bank in the amount of $600 or $650 if the outstanding principal amount exceeds $45,000 at any time. As of December 31, 2019, the Company did not meet all financial and non-financial covenants per the Credit Agreement; however, the Company has received waivers from Pacific Western Bank for all covenants not met. Borrowings under the Credit Agreement are secured by a first lien on all issued and outstanding shares of capital stock of the Company’s subsidiaries (except for any foreign subsidiaries, for which 65% of such capital stock is pledged) and on all assets, including intellectual property. Pursuant to the Credit Agreement, the Company is required to maintain substantially all depository, operating and investment accounts, excluding any proceeds from the Company’s gaming business, with Pacific Western Bank. The Company is also subject to certain affirmative and negative covenants until maturity. These covenants include limitations on the Company’s ability to incur additional indebtedness and to pay dividends. Obligations under the Credit Agreement are subject to acceleration upon the occurrence of specified events of default, including failure to comply with covenants. In connection with entering into the Credit Agreement, DraftKings issued a warrant to Pacific Western Bank to purchase 173,913 shares of its common stock at an exercise price of $0.23 per share. The warrant is immediately exercisable and expires in October 2020. Amounts outstanding, were recorded as current liabilities in the consolidated balance sheets as of December 31, 2019 and 2018. The interest rate in effect at December 31, 2019 and 2018 was 6.5%. The Company recorded interest expense of $258, $256 and $284 as of December 31, 2019, 2018 and 2017, respectively, which is included in interest income (expense), net on the consolidated statements of operations. The amount allocated to the warrants in October 2013 was recorded as a debt discount and was fully amortized as of December 31, 2017. The amount was recognized as interest expense over the term of the Credit Agreement using the effective interest method. Preferred Stock Investor in Series F Note On September 26, 2019, the Company entered into share redemption agreements with certain funds managed by Preferred Stock Investor in Series F (the “Preferred Stock Investor in Series F Funds”), pursuant to which the Company repurchased and redeemed shares of its preferred stock held by the Preferred Stock Investor in Series F Funds (the “Preferred Stock Investor in Series F Redemption”). A portion of the consideration paid by DraftKings in connection with the Preferred Stock Investor in Series F Redemption, equaling approximately $11,000, was paid by the issuance of promissory notes to certain of the Preferred Stock Investor in Series F Funds (the “Preferred Stock Investor in Series F Notes”). The Preferred Stock Investor in Series F Notes have a maturity date of the earlier of September 26, 2021 and the date on which DraftKings closes an equity financing with gross proceeds to DraftKings of at least $100 million. Until December 31, 2019, unpaid interest will accrue on the Preferred Stock Investor in Series F Notes at a rate of 2.33% per annum, computed on a basis of a 365-day year and payable annually in arrears. Following December 31, 2019, unpaid interest will accrue at a rate of 7.5% per annum, computed on a basis of a 365-day year and payable annually in arrears. Upon any event of default, as defined in the Preferred Stock Investor in Series F Notes, and at the option and upon the declaration of the holder thereof, the Preferred Stock Investor in Series F Notes will accelerate, and all principal and unpaid accrued interest will become due and payable. The Preferred Stock Investor in Series F Notes are subordinated to the Credit Agreement and any indebtedness or debentures, notes or other such indebtedness issued in exchange for the Credit Agreement, pursuant to a subordination agreement entered into by and among the relevant Preferred Stock Investor in Series F Funds, the Company and Pacific Western Bank, dated as of September 25, 2019. Indirect Taxes Taxation of e-commerce is becoming more prevalent and could negatively affect the Company’s business 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 taxation laws are complex and subject to differences in application and interpretation. Tax authorities may interpret laws originally enacted for mature industries and apply it to newer industries, such as the Company’s, and that application may be inconsistent from jurisdiction to jurisdiction. 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. Additionally, the Company’s jurisdictional activities may vary from period to period which could result in differences in nexus from period to period. Lastly, the Company’s estimated contingent liability for indirect taxes may be materially impacted by future indirect tax audit results, litigation and settlements, should they occur. As of December 31, 2019 and 2018, the Company’s estimated contingent liability for indirect taxes was $35,899, and $27,238, respectively. This is recorded within other long-term liabilities on the consolidated balance sheets and general and administrative expenses on the consolidated statements of operations. Deferred Rent In conjunction with its newly leased business facilities, the Company receives incentives from landlords for tenant owned leasehold improvements. These short-term and long-term amounts are recorded as deferred rent reported in the accounts payable and accrued expenses and other long-term liabilities sections of the consolidated balance sheet. These amounts are released ratably over the lease term, with an offset to current period lease expense. As of December 31, 2019, rent expense has been reduced by $377 due to the release of the deferred rent balance. Short-term and long-term balances of deferred rent are $1,125 and $9,747, respectively.

Convertible Promissory Notes	12 Months Ended
Convertible Promissory Notes	Dec. 31, 2019
Convertible Promissory Notes
Convertible Promissory Notes	7. Convertible Promissory Notes Beginning in December 2019, DraftKings issued subordinated convertible promissory notes to certain investors (the “Convertible Notes”). The aggregate principal amount outstanding under the Convertible Notes was approximately $69,123 (the “Convertible Notes”). Interest accrues on the Convertible Notes at a rate of 10% per annum and is automatically capitalized and added to the outstanding principal amount of each Convertible Note on each anniversary of the date of issuance of such Convertible Note. The Convertible Notes may only be prepaid with the consent of the holders of a majority of the then-outstanding principal amount (the “Majority Holders”). In connection with issuance of the Convertible Notes, the Company incurred fees in the amount of 1.5% of the gross proceeds, payable to a related party as described in Note 12. These fees are capitalized as debt issuance costs and are recorded in the convertible promissory notes in the consolidated balance sheets. The amount owed to the related party is recorded in accounts payable and accrued expenses in the consolidated balance sheets. The Convertible Notes automatically convert into equity upon (i) a business combination transaction that results in common shares of DraftKings, its successor or a new parent company being listed on a national securities exchange (a “Qualified Business Combination”), (ii) the issuance of equity securities of DraftKings that results in DraftKings receiving a minimum of $100,000 in proceeds (a “Qualified Financing”) or (iii) an initial public offering of the equity securities of DraftKings pursuant to a registration statement under the Securities Act of 1933, as amended (an “IPO”). In the case of a Qualified Business Combination, the outstanding principal and interest on the Convertible Notes will convert into listed common shares of DraftKings, its successor or the new parent entity, as applicable, at a price per share equal to (i) in the case of the closing of the Private Investment in Public Entity (“PIPE”) Transaction, the price paid by the cash investors purchasing PIPE Shares in the PIPE Transaction and (ii) in all other cases, the volume weighted average trading price of such shares for the five consecutive trading days ending on the trading day immediately preceding the closing of the Qualified Business Combination. In the case of a Qualified Financing, the outstanding principal and interest on the Convertible Notes will convert into the equity securities sold to the cash investors in such Qualified Financing, at a price per share equal to the price paid by the cash investors in such Qualified Financing. In the case of an IPO, the outstanding principal and interest on the Convertible Notes will convert into the equity securities sold in such IPO, at a price per share equal to the initial public offering price. At the election of the Majority Holders, the Convertible Notes are convertible into equity upon the issuance of equity securities of DraftKings that results in DraftKings receiving less than $100,000 in proceeds (a “Non- Qualified Financing”). In the case of a Non-Qualified Financing, the outstanding principal and interest on the Convertible Notes will convert into the equity securities sold to the cash investors in such Non-Qualified Financing, at a price per share equal to the price paid by the cash investors in such Non-Qualified Financing. In the event of a combination, consolidation or merger, other than a Qualified Business Combination, or a transfer of more than 50% of the voting power of DraftKings’ stock to stockholders that were not stockholders on the date of issuance of the Convertible Notes, the Company will be obligated to repay the Convertible Notes, an amount equal to the outstanding principal and interest, plus a prepayment premium equal to 15% of the original principal amount. In addition to the foregoing, in the event that the Convertible Notes remain outstanding on December 16, 2022 (the “CN Maturity Date”), the Convertible Notes will convert as of the CN Maturity Date into shares of a newly created series of DraftKings’ preferred stock having substantially the same rights, privileges and preferences as DraftKings’ existing Series F Preferred Stock at a conversion price equal to $3.31 (as adjusted for any stock split, stock dividend, combination, recapitalization or similar transaction). The Convertible Notes are subordinated to the Credit Agreement and any indebtedness or debentures, notes or other such indebtedness issued in exchange for the Credit Agreement, pursuant to a subordination agreement entered into by and among the holders of the Convertible Notes, DraftKings and Pacific Western Bank. The Convertible Notes have a provision requiring the repayment of the notes at a premium upon a change of control, which constitutes an embedded compound derivative that is being accounted for separately. Each reporting period, the Company will record the derivative liability at fair value, with any changes in fair value recorded in the consolidated statements of operations. The Company determined that the fair value of this embedded compound derivative was $457 at December 31, 2019. The derivative was recorded as a debt discount and will be amortized as interest expense using the effective interest method. The Company recorded total interest expense of $276 for the year ended December 31, 2019.

Redeemable Convertible Preferred Stock

12 Months Ended

Dec. 31, 2019

Redeemable Convertible Preferred Stock

Redeemable Convertible Preferred Stock

8. Redeemable Convertible Preferred Stock

The Company had the following shares of preferred stock authorized and outstanding at December 31, 2019:


		Preferred
	Preferred	Shares Issued
	Shares	and
	Authorized	Outstanding	Carrying Value
Series E-1 redeemable convertible preferred stock	54,901	54,901	$	119,752
Series F redeemable convertible preferred stock	78,445	55,349		138,619
Total	133,346	110,250	$	258,371

The Company had the following shares of preferred stock authorized and outstanding at December 31, 2018:


		Preferred
	Preferred	Shares Issued
	Shares	and
	Authorized	Outstanding	Carrying Value
Series E-1 redeemable convertible preferred stock	54,901	54,901	$	119,427
Series F redeemable convertible preferred stock	78,445	57,068		141,850
Total	133,346	111,969	$	261,277

The Company had the following shares of preferred stock authorized and outstanding at December 31, 2017:


		Preferred
	Preferred	Shares Issued
	Shares	and
	Authorized	Outstanding	Carrying Value
Series E-1 redeemable convertible preferred stock	54,901	54,901	$	119,009

In September 2019, the Company repurchased 4,598 of Series F preferred stock through the issuance of $11,000 convertible notes and a cash payment of $722 as described in Note 6. As of December 31, 2019, the Company had 54,901 and 55,349 Series E‑1 and Series F convertible preferred stock with conversion rates of approximately 1.57 and 2.55 per share, respectively.

As of December 31, 2018, the Company had 54,901 and 57,068 Series E‑1 and Series F convertible preferred stock with conversion rates of approximately 1.57, and 2.55 per share, respectively.

As of December 31, 2017, the Company had 54,901 Series E‑1 convertible preferred stock issued and outstanding with a conversion rate of approximately 1.12 per share.

Voting

Each holder of each series of preferred stock shall be entitled to vote on all matters and shall be entitled to the number of votes equal to the number of whole shares of common stock into which such holder’s shares of preferred stock could be converted, as defined below. Except as otherwise required by law, or by the provisions of the Certificate of Incorporation, the holders of preferred stock shall vote together with the holders of common stock as a single class.

Dividends

The holders of Series E‑1 and Series F preferred stock are generally not entitled to any dividends. However, no dividends shall be declared or paid on shares of any other classes or series of capital stock of the Company, unless the holders of preferred stock first receive a dividend, with the preferred stock dividend calculated in such a manner that it would result in the highest possible preferred stock dividend. As of December 31, 2019, no dividends have been declared for either Series E‑1 or Series F.

Liquidation

In the event of any voluntary or involuntary liquidation, dissolution or winding up of the Company, the holders of Series E‑1 or Series F shall be entitled to be paid out of the assets of the Company on a pari passu basis before any payments are made to the holders of common stock.

Conversion

Each share of preferred stock is convertible at the option of the holder by dividing the original issue price by the applicable conversion price. The original issue prices for Series E‑1 and Series F were approximately $2.20 and $2.55, respectively. The conversion prices in effect as of December 31, 2019 for Series E‑1 and Series F preferred stock are approximately $1.57 and $2.55, respectively, which result in share conversion factors of approximately 1.40 for Series E‑1 and 1.00 for Series F. If all preferred stock converts to common stock, the Company would issue 77,132 shares of common stock to the holders of Series E‑1 and 55,349 shares of common stock to the holders of Series F.

The applicable conversion prices are subject to adjustment, as defined in the Certificate of Incorporation.

Redemption

At any time on or after August 17, 2023, with respect to the Series E‑1, the Series E‑1 majority and with respect to the Series F, the Series F majority (each as defined in the Certificate of Incorporation) may request to redeem the applicable original issue price per share plus all declared but unpaid dividends on each series of preferred stock, in three annual installments commencing not more than sixty days after receipt by the Company of a written notice requesting redemption. Due to this contingent redemption feature that is outside of the Company’s control and, accordingly, pursuant to ASC 480‑10‑S99, the preferred shares are recorded at their redemption value, outside of stockholder’s equity (mezzanine equity). Subsequent to the date of the Business Combination Agreement, the instruments will be assessed to determine whether it is probable of the instruments being redeemed as a result of a contingency being resolved. When it is deemed probable, the fair value will be adjusted to the new estimate of the fair value in that period.

Common Stock	6 Months Ended	12 Months Ended
Common Stock	Jun. 30, 2020	Dec. 31, 2019
Common Stock
Common Stock	8.Stockholder’s Equity The condensed consolidated statements of change 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 and 2018 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 condensed 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 393,014 shares of Class B common stock to Jason Robins, the Chief Executive Officer of Old DK and of the Company, which converted into 393,014 shares of Class B common stock of the Company and which is recorded as stock-based compensation for the three and six months ended June 30, 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, they are excluded from the calculation of earnings per share of DraftKings. Upon the consummation of the Business Combination, the mandatory conversion feature was triggered for the Company’s convertible notes. All outstanding principal of $109,165 and unpaid accrued interest of $3,380 were collectively converted to equity securities at a $10 per share. The noteholders received 11,254 shares of Class A common stock in New DraftKings as result of the conversion. As part of the Business Combination $665,485 of Class A common stock and Additional Paid in Capital was recorded, net of transaction costs of $10,631, in relation to DEAC shares being recapitalized. The Company then used $186,477 as cash consideration in its acquisition of SBTech and $7,192 for the buyout of unaccredited investors. Net cash proceeds to the Company were $484,962. In June 2020, the Company issued 16,000 new shares of our Class A common stock in a public offering for net proceeds (net of underwriting fees) of $620,800. As of June 30, 2020, the Company had 300,000 shares authorized of preferred stock, $0.0001 par value, none of which were issued and outstanding as of June 30, 2020 or December 31, 2019.	9. Common Stock Per the Company’s Ninth Amended and Restated Certificate of Incorporation, the Company is authorized to issue 735,000 shares of $0.001 par value common stock. As of December 31, 2019 and 2018, 389,610 and 384,009 shares, respectively, of $0.001 par value common stock were issued and outstanding. Each share of common stock entitles the holder to one vote on all matters submitted to a vote of the Company’s stockholders. Common stockholders are entitled to receive dividends, if any, as may be declared by the board of directors, subject to the preferential dividend rights of the preferred stockholders. No dividends have been declared through December 31, 2019.

Stock-Based Compensation

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

Stock-Based Compensation

10.Stock-Based Compensation

The following table shows stock option activity for the six months ended June 30, 2020 and 2019:


							Weighted-
					Weighted-		Average
					Average		Remaining	Aggregate
	Number of Options / RSU’s				Exercise		Term	Intrinsic
	Time Based	PSP (3)	LTIP (3)	Total	Price		(in Years)	Value
Outstanding at December 31, 2018	66,527	5,161	40,189	111,877	$	0.84	8.15	$	69,765
Recapitalization Impact	(43,003)	(3,336)	(25,978)	(72,317)		1.54	—		—
Outstanding at December 31, 2018	23,524	1,825	14,211	39,560		2.38	8.15		69,765
Granted	14,861	6,263	5,490	26,614		4.70
Exercised	(1,285)	(31)	—	(1,316)		0.96
Forfeited	(636)	(47)	—	(683)		3.32
Outstanding at June 30, 2019	36,464	8,010	19,701	64,175		2.82	8.11		90,252

Outstanding at December 31, 2019	78,772	11,233	45,817	135,822	$	1.01	7.64	$	203,431
Recapitalization Impact	(50,919)	(7,261)	(29,616)	(87,796)		1.85	—		—
Outstanding at December 31, 2019	27,853	3,972	16,201	48,026		2.86	7.64		203,431
Granted	4,331	—	15,070	19,401		0.61
Exercised	(2,732)	(520)	(603)	(3,855)		1.61
Forfeited	(656)	(4)	—	(660)		2.53
Outstanding at June 30, 2020	28,796	3,448	30,668	62,912	$	2.26	7.79	$	1,968,051

Vested and Expected to Vest as of June 30, 2020
Vested	21,147	3,448	15,599	40,194	$	2.72	6.91	$	1,225,735

Estimate of Expected to Vest(1)
2020(4)	1,966	—	5,100	7,066
2021	3,223	—	—	3,223
2022+(2)	2,110	—	9,280	11,390
	7,299	-	14,380	21,679	$	1.44	9.33	$	708,362

Effect of estimated forfeitures	350	—	689	1,039	$	1.56	9.53	$	33,953

(1)

Adjusted for estimated forfeitures.

(2)

Estimate does not consider future vesting based on share price targets, which may differ materially from the above estimates.

(3)

Performance based instruments.

(4)

For remainder of 2020 period.


			Three Months Ended June 30,					Six Months Ended June 30,
		2020			2019		2020			2019
Time Based	$	1,712		$	1,844	$	3,346		$	3,611
PSP		—			—		1,633			3,064
LTIP (1)		44,774			—		46,349			—
B Shares (2)		8,000			—		8,000			—
Total	$	54,486		$	1,844	$	59,328		$	6,675

(1)

Resulting from achievement of share price targets and probability-based expensing.

(2)

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

10. Stock-Based Compensation


	2019		2018
Risk free interest rate	1.95	%	2.80	%
Expected term (in years)	6.02		6.11
Expected volatility	41.48	%	41.98	%
Expected dividend yield	0	%	0	%

LTIP options

PSP options

Non-Employee Warrants

The following table shows stock option activity for the years ended December 31, 2019, 2018 and 2017:


								Weighted
						Weighted		Average
	Number of Shares					Average		Remaining	Aggregate
	Time					Exercise		Term	Intrinsic
	Based		PSP	LTIP	Total	Price		(years)	Value
Outstanding at December 31, 2016	$	44,530	—	—	44,530	$	0.22	8.24	$	30,680
Granted		14,165	—	5,131	19,296		1.17
Exercised		(1,306)	—	—	(1,306)		0.15
Forfeited		(958)	—	—	(958)		0.61
Outstanding at December 31, 2017	$	56,431	—	5,131	61,562	$	0.51	8.00	$	32,401
Granted		13,564	5,320	35,058	53,942		1.18
Exercised		(2,297)	—	—	(2,297)		0.25
Forfeited		(1,171)	(159)	—	(1,330)		0.88
Outstanding at December 31, 2018	$	66,527	5,161	40,189	111,877	$	0.84	8.15	$	69,765
Granted		16,278	6,263	5,628	28,169		1.65
Exercised		(2,837)	(112)	—	(2,949)		0.41
Forfeited		(1,196)	(79)	—	(1,275)		1.19
Outstanding at December 31, 2019	$	78,772	11,233	45,817	135,822	$	1.01	7.64	$	203,431
Time Vesting*					75,170	$	0.84	7.01	$	125,849
PSP**					10,719	$	1.44	8.92	$	11,484
LTIP**					8,568	$	1.21	8.42	$	11,129

* Adjusted for assumed forfeitures

** Adjusted for assumed forfeitures, excludes post‑2019 vesting

Income Taxes

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

11.Income Taxes

Three and six months ended June 30, 2020 and June 30, 2019 is as follows:


	Three months ended June 30,				Six months ended June 30,
	2020		2019		2020		2019
Provisions for income taxes	$	323	$	7	$	332	$	16

11. Income Taxes

Loss before provision for (benefit from) income taxes for the years ended December 31, 2019, 2018 and 2017 consist of the following:


	Year Ended December 31,
	2019		2018		2017
United States	$	(142,198)	$	(76,122)	$	(75,445)
Foreign		1		7		99
Loss before provision for (benefit from) income taxes	$	(142,197)	$	(76,115)	$	(75,346)

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


	Year Ended December 31,
	2019		2018		2017
Current:
Federal	$	—	$	—	$	—
State		—		—		—
Foreign		4		86		65
Total current provision		4		86	$	65
Deferred:
Federal	$	—	$	9	$	36
State		54		10		109
Foreign		—		—		—
Total deferred provision		54		19		145
Total provision	$	58	$	105	$	210

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, 2019, 2018 and 2017 are as follows:


	Year Ended December 31,
	2019		2018		2017
Provision for income taxes at statutory rate	$	(29,863)	$	(15,984)	$	(25,400)
Prior year provision true-ups		3,164		(157)		982
State taxes, net of federal benefit		(7,522)		(7,525)		(2,769)
Certain stock-based compensation expenses		2,412		430		536
Non-deductible lobbying expenses		1,885		1,352		2,505
Non-deductible acquisition expenses		2,068		—		—
Change in valuation allowance		19,988		21,584		(66,370)
Impact of federal rate change on net deferred taxes		—		—		90,889
Net operating loss write-off		7,246		—		—
Other		680		405		(163)
Provision for income taxes	$	58	$	105	$	210

Significant components of the Company’s deferred tax assets (liabilities) as of December 31, 2019 and 2018 are as follows:


	As of December 31,
	2019		2018
Deferred tax assets:
Stock-based compensation	$	4,552	$	3,472
Intangible assets		123		187
Fixed assets		—		365
Accrual and other temporary differences		20,907		12,273
Credit carryforwards		15		15
Net operating loss carryforwards		217,836		203,180
Total deferred tax assets:	$	243,433	$	219,492
Deferred tax liability:
Capitalized software costs		(6,335)		(4,364)
Fixed assets		(2,035)		—
Total Net Deferred Tax Assets		235,063		215,128
Valuation allowance		(235,280)		(215,292)
Net deferred tax liabilities	$	(217)	$	(164)

Related-Party Transactions	6 Months Ended	12 Months Ended
Related-Party Transactions	Jun. 30, 2020	Dec. 31, 2019
Related Party Transactions
Related-Party Transactions	14.Related-Party Transactions Media Purchase Agreement (“MPA”) In July 2015, Old DK entered into an MPA with a related party purchaser 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 $15,000 per year, plus an additional contingent commitment of $5,000 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 $15,000 in aggregate through December 31, 2021 ($5,000 per year) and the contingent commitment was removed. If the Company satisfies the $15,000 commitment prior to December 31, 2021, the MPA will expire unless the Company elects to extend the MPA through the next NFL season with no required minimum. The Company recorded expense of $1,241 and $3,400 related to the MPA for the three and six months ended June 30, 2020 and recorded expense of $88 and $2,216 related to the MPA for the three and six months ended June 30, 2019, respectively, in sales and marketing expenses in the condensed consolidated statements of operations. As of June 30, 2020 and December 31, 2019, $1,563 and $2,413, respectively, of MPA is included in accounts payable and accrued expenses in the condensed consolidated balance sheets. Private Placement Agent Old DK entered into an engagement letter with a related party (the “Private Placement Agent”) in August 2019, as amended in December 2019. Pursuant to the engagement letter, the Private Placement Agent has acted as the exclusive financial advisor to Old DK, and Old DK agreed to pay certain acquisition and financing fees in connection with the Business Combination with SBTech and DEAC. As of the six months ended June 30, 2020 and June 30, 2019 Old DK incurred $12,349 and $0, respectively, of fees with the Private Placement Agent. During the three months ended June 30, 2020 and June 30, 2019, Old DK incurred $11,748 and $0, respectively. Receivables from Equity Method Investment The Company provides office space and general operational support to DKFS, LLC, an equity-method investment. The operational support is primarily general and administrative support services. As of June 30, 2020, and December 31, 2019, the Company had $1,080 and $959, respectively, of receivables from the entity related to these services, which are included within current assets in the condensed consolidated balance sheets. Transactions with a Shareholder and his Immediate Family Members The Business Combination Agreement requires payment to a shareholder in the event certain SBTech accounts receivable are collected. As of June 30, 2020, the Company had a $1,593 payable to the shareholder. In addition, the Company had sales to an entity related to an immediate family member of the shareholder during the three and six months ended June 30, 2020 and had an associated accounts receivable balance of $579 as of June 30, 2020. There were no related party transactions with the shareholder or their immediate family members for the three or six months ended June 30, 2019 and no related accounts receivable balance as of December 31, 2019.	12. Related-Party Transactions Media Purchase Agreement (“MPA”) In July 2015, the Company entered into a MPA with a related party purchaser 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 $15,000 per year plus an additional contingent commitment of $5,000 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 $15,000 in aggregate through December 31, 2021 ($5,000 per year) and the contingent commitment was removed. If the Company satisfies the $15,000 commitment prior to December 31, 2021, the MPA will expire unless the Company elects to extend the MPA through the next NFL season with no required minimum. The Company recorded expense of $8,411 and $23,313 related to the MPA for the years ended December 31, 2019 and 2018, respectively, in sales and marketing expenses in the consolidated statements of operations. As of December 31, 2019, and 2018, $2,413 and $428, respectively, of MPA contractual obligations were unpaid and included in accounts payable and accrued expenses in the consolidated balance sheets. Future minimum obligations under the MPA are included in the other contractual obligations table in Note 13. Private Placement Agent In March 2015, the Company entered into an engagement letter with a related party (the “Private Placement Agent”), pursuant to which the related party served as a private placement agent for DraftKings in connection with DraftKings’ Series E and Series E‑1 preferred stock financings. The engagement letter terminated in June 2018. Of the Company’s Series E‑1 redeemable convertible preferred stock issued and outstanding, $119,752 and $119,427 as of December 31, 2019 and 2018, respectively, is held by the related party. Redeemable convertible preferred stock is discussed in Note 8. In connection with the Company’s Series E‑1 redeemable convertible preferred stock issuance, $2,066 of fees were incurred during the year ended December 31, 2017 and $0 in fees were incurred during the years ended December 31, 2019 and 2018. The 2017 fees are accreted ratably over the expected life of Series E‑1. These fees are presented in the Series E‑1 redeemable convertible preferred stock in the consolidated balance sheets. The Company also entered into an engagement letter in August 2019, and amended in December 2019, with the Private Placement Agent. Pursuant to the engagement letter, the Private Placement Agent has acted as the exclusive financial advisor to DraftKings, and the Company has agreed to pay certain acquisition and financing fees in connection with potential transactions. Refer to Note 7 for a description of the financing fee incurred in 2019. Receivables from Equity Method Investment The Company provides office space and general overhead support to DKFS, LLC, an equity-method affiliate. The overhead support relates to rent, utilities and general and administrative support services. As of December 31, 2019, the Company had $959 of receivables from the entity related to these services and is included within current assets.

Commitments and Contingencies

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

15.Commitments and Contingencies

Leases

Total rent expense for the three and six months ended June 30, 2020 was $4,702 and $7,785, respectively, and for the three and six months ended June 30, 2019 was $2,406 and $4,597, respectively.

Future minimum lease payments are as follows:


Years ending December 31,
From July 1, 2020 to December 31, 2020	$	8,435
2021		15,668
2022		13,947
2023		13,637
2024		12,029
Thereafter		35,766
Total	$	99,482

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:


Years ending December 31,
From July 1, 2020 to December 31, 2020	$	24,439
2021		51,487
2022		28,959
2023		17,463
2024		8,150
Thereafter		15,400
Total	$	145,898

Contingencies

Letters of Credit

13. Commitments and Contingencies

Leases

Total rent expense for the years ended December 31, 2019, 2018 and 2017 was $10,412, $5,266 and $3,431, respectively.

Future minimum lease payments are as follows:


Years ending December 31,
2020	$	10,067
2021		8,300
2022		8,374
2023		8,292
2024		7,310
Thereafter		23,685
Total	$	66,028

Other Contractual Obligations and Contingencies


Years ending December 31,
2020(a)	$	74,390
2021		54,725
2022		33,885
2023		13,689
2024		4,950
Thereafter		4,100
Total	$	185,739

(a) 2020 balance includes $13,880 of contingent success fees.

Included in the above contractual obligations are related party commitments from the MPA discussed in Note 13.

Litigation

From time to time, and in the ordinary course of business, the Company may be subject to certain claims, charges and litigation. Much of civil litigation to which the Company is a party relates to advertising and consumer protection matters. The majority of these cases were consolidated into a multi-district litigation (“MDL”) in February 2016 in the U.S. District Court for the District of Massachusetts along with claims against other entities and individuals within the DFS industry (the “DFS defendants”). On November 27, 2019, the Court granted in part and denied in part the DFS defendants’ motions to compel arbitration. The Company intends to vigorously defend itself. While we do not believe, based on currently available information, that the outcome of this proceeding will have a material adverse effect on the Company’s financial condition, the outcome could be material to the Company’s financial results for any particular period, depending, in part, upon the results for such period.

Settlement Liability

Letters of Credit

Retirement Plans	12 Months Ended
Retirement Plans	Dec. 31, 2019
Retirement Plans
Retirement Plans	14. Retirement Plans In August 2017, the Company created a defined contribution savings plan under Section 401(k) of the Internal Revenue Code. All domestic employees who meet minimum age and service requirements are permitted to participate in this plan. The plan allows participants to defer a portion of their annual compensation on a pre-tax basis for the calendar years 2019, 2018 and 2017. Company contributions to the plan are made based on achievement of designated financial goals. During the years ended December 31, 2019, 2018 and 2017 the Company contributed $1,342, $842 and $0 respectively.

Revenue Recognition

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

9.Revenue Recognition

Deferred Revenue


	Three months ended June 30,				Six months ended June 30,
	2020		2019		2020		2019
Deferred revenue, beginning of the period	$	24,094	$	14,074	$	20,760	$	13,581
Deferred revenue, end of the period		24,759		13,280		24,759		13,280
Revenue recognized in the period from amounts included in deferred revenue at the beginning of the period		1,909		2,386		8,635		6,661

Revenue Disaggregation

Disaggregation of revenue for the three and six months ended June 30, 2020 and 2019 are as follows:


	Three months ended June 30,				Six Months ended June 30,
	2020		2019		2020		2019
Online gaming	$	55,409	$	56,112	$	139,114	$	121,402
Gaming software		14,954		—		14,954		—
Other		568		1,278		5,405		4,080
Total Revenue	$	70,931	$	57,390	$	159,473	$	125,482

Online gaming includes DFS, iGaming and Sportsbook which have similar attributes and pattern of recognition. Gaming software and Other also have similar attributes and pattern of recognition.

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


	Three months ended June 30,				Six months ended June 30,
	2020		2019		2020		2019
United States	$	56,577	$	55,120	$	147,387	$	122,290
International		14,354		2,270		12,086		3,192
Total Revenue	$	70,931	$	57,390	$	159,473	$	125,482

15. Revenue Recognition

Deferred Revenue

Revenue Disaggregation


	Years Ended December 31,
	2019		2018(a)		2017(a)
Online Gaming(b)	$	308,177	$	219,131	$	189,779
Other		15,233		7,146		2,065
Total revenue	$	323,410	$	226,277	$	191,844

(a) As disclosed in Note 2, prior period amounts have not been adjusted under the modified retrospective method of adoption of Topic 606.

(b) Online Gaming includes DFS, iGaming and Sportsbook. These revenue streams have similar attributes and the same pattern of recognition.

Loss Per Share

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

Loss Per Share

13.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:


	Three months ended June 30,				Six months ended June 30,
	2020		2019		2020		2019
Net loss	$	(161,437)	$	(28,113)	$	(230,117)	$	(57,667)
Basic and diluted weighted-average common shares outstanding		291,992		184,723		238,104		184,234
Loss per share attributable to common stockholders:
Basic and diluted	$	(0.55)	$	(0.15)	$	(0.97)	$	(0.31)


	June 30, 2020	June 30, 2019
Warrants	2,327	3,783
Stock options	62,912	48,267
Total	65,239	52,050

16. Loss Per Share

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


	Years ended December 31,
(in thousands except per share data):	2019		2018		2017
Net loss	$	(142,734)	$	(76,220)	$	(75,556)
Less: accretion of preferred share issuance costs		(992)		(678)		(1,513)
Net loss attributable to common stockholders	$	(143,726)	$	(76,898)	$	(77,069)
Basic and diluted weighted average common share outstanding		386,793		381,821		142,451
Loss per share attributable to common shareholders:
Basic and diluted	$	(0.37)	$	(0.20)	$	(0.54)


	Years ended December 31,
	2019	2018	2017
Warrants	515	2,422	2,080
Stock options	135,823	111,877	61,562
Convertible Notes(a)	20,952	—	—
Total	157,290	114,299	63,642

(a)

Represents the conversion of the outstanding balance plus accrued interest divided by the stated conversion price of 3.31. These notes are contingently issuable as of December 31, 2019.

Segment Information

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

Summary of Significant Accounting Policies and Practices

Segment Information

12.Segment Information

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 tables:


	Three Months Ended June 30,
	2020		2019
Revenue:
B2C	$	55,977	$	57,390
B2B		14,954		—
Total revenue		70,931		57,390

Adjusted EBITDA:
B2C		(53,973)		(21,101)
B2B		(3,522)		—
Total adjusted EBITDA		(57,495)		(21,101)
Adjusted for:
Depreciation and amortization		18,668		3,274
Interest (income) expense, net		588		(426)
Income tax expense		323		7
Stock-based compensation		54,486		1,844
Transaction-related costs		25,255		1,276
Litigation, settlement and related costs		2,022		814
Other non-recurring costs and special project costs		2,517		223
Non-operating costs		83		—
Net Loss attributable to common stockholders	$	(161,437)	$	(28,113)


	Six Months Ended June 30,
	2020		2019
Revenue:
B2C	$	144,519	$	125,482
B2B		14,954		—
Total revenue		159,473		125,482

Adjusted EBITDA:
B2C		(103,434)		(41,516)
B2B		(3,522)		—
Total adjusted EBITDA		(106,956)		(41,516)
Adjusted for:
Depreciation and amortization		23,372		6,199
Interest (income) expense, net		2,939		(1,087)
Income tax expense		332		16
Stock-based compensation		59,328		6,675
Transaction-related costs		30,907		1,276
Litigation, settlement and related costs		3,352		1,701
Other non-recurring costs and special project costs		2,646		1,371
Non-operating costs		285		—
Net Loss attributable to common stockholders	$	(230,117)	$	(57,667)

17. Segment Information

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


	Years ended December 31,
	2019		2018		2017
United States	$	318,144	$	219,415	$	187,261
Other		5,266		6,862		4,583
Total revenue	$	323,410	$	226,277	$	191,844

As of the years ended December 31, 2019, and 2018, the Company did not have material assets located outside of the United States.

Subsequent Events	6 Months Ended	12 Months Ended
Subsequent Events	Jun. 30, 2020	Dec. 31, 2019
Subsequent Events
Subsequent Events	16.Subsequent Events The Company considers events or transactions that occur after the balance sheet date, but before the unaudited condensed consolidated financial statements are issued, to provide additional evidence relative to certain estimates or identify matters that require additional disclosures. The Company evaluated subsequent events through August 14, 2020, the date on which the unaudited condensed consolidated financial statements were available to be issued. The unaudited condensed consolidated financial statements reflect those material items that arose after the balance sheet date, but prior to this date that would be considered recognized subsequent events.	18. Subsequent Events On December 22, 2019, Diamond Eagle Acquisition Corp, a special purpose acquisition company (“Diamond Eagle”), entered into a Business Combination Agreement (the “Business Combination Agreement”) with DraftKings Inc. (“DraftKings”), the Group, the Group’s shareholders, the representative of the Group’s shareholders, DEAC NV Merger Corp., a Nevada corporation and a wholly-owned subsidiary of DEAC (“DEAC Nevada”), DEAC Merger Sub Inc., a Delaware corporation and a wholly-owned subsidiary of DEAC (“Merger Sub”), pursuant to which (i) Diamond Eagle will merge with and into DEAC Nevada, with DEAC Nevada surviving the merger (the “reincorporation”), (ii) following the reincorporation, Merger Sub will merge with and into DraftKings with DraftKings surviving the merger (the “DraftKings Merger”), (iii) immediately following the DraftKings Merger, Diamond Eagle will acquire all of the issued and outstanding share capital of SBTech and vested in-the-money options exercisable for SBTech share capital (the “SBTech Acquisition”) for approximately €590,000, consisting of (x) €180,000 in cash, subject to customary net debt and working capital and certain other specified adjustments payable in respect of the SBT shares and 30% of the in-the-money vested SBT options and (y) approximately €410,000 in shares of New DraftKings Class A common stock, valued at the redemption price for Diamond Eagle’s public shares in the Business Combination, and in the form of newly issued in-the-money vested options of New DraftKings exercisable for New DraftKings Class A common stock and (iv) DEAC Nevada will be renamed DraftKings Inc. Each of the DraftKings Merger and the SBTech Acquisition will be on the terms and subject to the conditions set forth in the Business Combination Agreement. The transaction is expected to close in 2020. In January and February 2020, DraftKings issued $40,042 of additional Convertible Notes. Refer to Note 7 for the associated terms and conditions. In February 2020, the Company paid off its $6,750 term note outstanding at December 31, 2019. In March 2020, the Company withdrew $44,500 in funds from its Credit Agreement with Pacific Western Bank. The Net facility available from the Credit Agreement for future withdrawals as of March 26, 2020 is $1,019, which represents the $50,000 facility less the $44,500 in funds withdrawn and the $4,481 in letters of credit outlined in Note 13. The $44,500 remains on deposit with Pacific Western Bank on March 26, 2020. COVID‑19 is having a significant impact on the Company. The direct impact on the Company beyond disruptions in normal business operations is primarily through the suspension, postponement and cancellation of major sports seasons and sporting events. Typically, during the March and April time periods, the Company would have significant user interest and activity in our DFS and Sportsbook product offerings for sporting events such as the NCAA college basketball tournament, the Masters golf tournament, as well as late season games and early playoff series of the National Basketball Association and the National Hockey League. The status of most of these sporting events is unknown, including whether the NBA season will be completed either in part or in its entirety on a delayed schedule or whether the Masters will be played anytime in calendar year 2020. The ultimate impact of COVID‑19 on the Company’s financial and operating results is unknown and will depend on the length of time that these disruptions exist and whether the sports seasons and sporting events will ultimately be suspended, postponed, or cancelled; however, COVID‑19 has had an impact and may continue to have an impact, the full extent of which is unknown, but which could be material. The Company considers events or transactions that occur after the balance sheet date, but before the consolidated financial statements are issued to provide additional evidence relative to certain estimates or identify matters that require additional disclosures. The Company evaluated subsequent events through March 26, 2020, the date on which the consolidated financial statements were available to be issued. The consolidated financial statements reflect those material items that arose after the balance sheet date, but prior to this date that would be considered recognized subsequent events.

Summary of Significant Accounting Policies and Practices (Policies)

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

Basis of Presentation and Principles of Consolidation

Going Concern

Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies, but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period, which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s consolidated financial statements with another public company which is neither an emerging growth company nor an emerging growth company, which has opted out of using the extended transition period, difficult or impossible because of the potential differences in accounting standards used.

Receivables Reserved for Users

Acquisitions

The Company accounts for business combinations under the acquisition method of accounting, in accordance with Accounting Standards Codification (“ASC”) Topic 805, Business Combinations, which requires assets acquired and liabilities assumed to be recognized at their fair values on the acquisition date. Any excess of the fair value of purchase consideration over 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 involves management making significant estimates and assumptions.

Cash

Cash and cash equivalents

Cash

Cash includes highly liquid checking and instant access internet banking accounts which are owned by the Company.

Cash Reserved for Users

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

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

User Relationships

Internally Developed Software

State Licenses

Goodwill

Impairment of Long-Lived Assets

Equity Method Investment

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, dividends received, capital contributions and distributions and impairment losses. The Company performs a qualitative assessment quarterly and recognizes an impairment if there are sufficient indicators that the fair value of the investment is less than carrying value.

Deposits

Liabilities to Users

Concentrations of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of operating cash and cash reserved for users. The Company maintains cash and cash reserves for users primarily across five financial institutions; however, the vast majority is held with one financial institution within separate bank accounts, which management believes to be of a high credit quality, in amounts that exceed federally insured limits. The Company does not believe that it is subject to unusual credit risk beyond the normal credit risk associated with commercial banking relationships.

Leases

The Company accounts for leases under the provisions of ASC Topic 840, Leases, which requires that leases be evaluated and classified as operating or capital leases for financial reporting purposes. The terms used for the evaluation include renewal option periods in instances in which the exercise of the renewal option can be reasonably assured and failure to exercise such option would result in an economic penalty. Leases are classified as capital leases whenever the terms of the lease transfer substantially all of the risks and rewards of ownership to the lessee. All other leases are recorded as operating leases. As of December 31, 2019 and 2018, all of the Company’s leases were operating leases.

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 other long-term liabilities in the consolidated balance sheets.

General and Administrative

The Company determines revenue recognition through the following steps:

· Identifying the contract, or contracts, with the customer;

· Identifying the performance obligations in the contract;

· Determining the transaction price;

· Allocating the transaction price to performance obligations in the contract; and

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

Online Gaming

Gaming software

Transaction Price Considerations

Variable Consideration

Allocation of transaction price to performance obligations

Certain costs to obtain or fulfill contracts

Contract balances

Revenue Recognition

The Company determines revenue recognition through the following steps:

Identifying the contract, or contracts, with the customer;

Identifying the performance obligations in the contract;

Determining the transaction price;

Allocating the transaction price to performance obligations in the contract; and

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

Transaction Price Considerations

Certain costs to obtain or fulfill contracts

Contract balances

Refer to Note 15 for further information, including changes in deferred revenue during the period.

Cost of Revenue

Sales and Marketing

Product and Technology

Advertising and Promotion Costs

Stock-based Compensation

The Company measures compensation expense for stock options and other stock awards in accordance with ASC Topic 718, Compensation — Stock Compensation. Stock-based compensation is measured at fair value on the grant date and recognized as compensation expense over the requisite service period. Generally, the Company issues stock options to employees with service-based, market based, 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. For awards with performance-based vesting conditions, the Company recognizes compensation cost on a tranche- by tranche basis (the accelerated attribution method).

Earnings (loss) per share

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 the financial statements and tax bases 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 provision. 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.

Fair Value Measurements

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

Recently Adopted Accounting Pronouncements

Recent Accounting Pronouncements Not Yet Adopted

Summary of Significant Accounting Policies and Practices (Tables)

12 Months Ended

Dec. 31, 2019

Summary of Significant Accounting Policies and Practices

Schedule of property plant and equipment useful life


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

Property and Equipment (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

Summary of property and equipment, net


	June 30, 2020		December 31, 2019
Computer equipment and software	$	19,676	$	9,685
Furniture and fixtures		7,540		5,891
Leasehold improvements		20,558		17,373
Property and Equipment		47,774		32,949
Accumulated depreciation		(10,772)		(7,004)
Property and Equipment, net	$	37,002	$	25,945


	December 31,
	2019		2018
Computer equipment and software	$	9,685	$	5,537
Furniture and fixtures		5,891		4,018
Leasehold improvements		17,373		7,924
Property and Equipment		32,949		17,479
Accumulated depreciation		(7,004)		(3,377)
Property and Equipment, net	$	25,945	$	14,102

Intangible Assets and Goodwill (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

Summary of intangible assets


	Weighted-
	Average
	Remaining	Gross
	Amortization	Carrying		Accumulated
	Period	Amount		Amortization		Net
Developed Technology	7.82 years	$	407,680	$	(9,484)	$	398,196
Internally developed software	2.37 years		55,109		(26,419)		28,690
Gaming Licenses	4.62 years		19,138		(1,944)		17,194
Trademarks and tradenames	2.82 years		4,480		(278)		4,202
Customer relationships	4.82 years		97,440		(3,627)		93,813
Intangible Assets, net		$	583,847	$	(41,752)	$	542,095


	Weighted-
	Average
	Remaining	Gross
	Amortization	Carrying		Accumulated
	Period	Amount		Amortization		Net
Internally developed software	2.35 years	$	43,753	$	(21,188)	$	22,565
Gaming Licenses	4.86 years		12,003		(629)		11,374
Intangible Assets, net		$	55,756	$	(21,817)	$	33,939


	Weighted-
	Average	Gross
	Amortization	Carrying		Accumulated
	Period	Amount		Amortization		Net
User relationships	—	$	3,328	$	(3,328)	$	—
Internally developed software	2.35 years		43,753		(21,188)		22,565
State licenses	4.86 years		12,003		(629)		11,374
Intangible Assets, net		$	59,084	$	(25,145)	$	33,939

The Company has the following intangible assets, net at December 31, 2018:


	Weighted-
	Average	Gross
	Amortization	Carrying		Accumulated
	Period	Amount		Amortization		Net
User relationships	0.5 years	$	3,328	$	(3,013)	$	315
Internally developed software	2.45 years		28,937		(12,572)		16,365
State licenses	0.75 years		251		(55)		196
Intangible Assets, net		$	32,516	$	(15,640)	$	16,876

Schedule of estimated future amortization of intangible assets


Year ending December 31,
2020	$	13,048
2021		10,250
2022		6,241
2023		2,200
2024 and thereafter		2,200
Total	$	33,939

Schedule of Goodwill


	B2C		B2B		Total
Balance as of December 31, 2019	$	4,738	$	—	$	4,738
Goodwill acquired in SBTech Acquisition*		348,345		122,600		470,945
Currency Translation Adjustment		—		4,895		4,895
Balance as of June 30, 2020	$	353,083	$	127,495	$	480,578

* = Preliminary allocation


Balance as of December 31, 2017	$	4,399
Goodwill acquired		339
Balance as of December 31, 2018	$	4,738
Goodwill acquired		—
Balance as of December 31, 2019	$	4,738

Accounts Payable and Accrued Expenses (Tables)

12 Months Ended

Dec. 31, 2019

Accounts Payable and Accrued Expenses

Schedule of Accounts payable and accrued expenses


	December 31,
	2019		2018
Accounts payable	$	16,618	$	11,626
Accrued payroll and related expenses		17,770		9,857
Accrued litigation, lobbying and compliance		6,153		5,566
Accrued loyalty points		4,131		7,272
Accrued marketing fees		11,855		3,237
Accrued operating taxes		5,745		2,741
Accrued partnership fees		7,868		4,340
Accrued professional fees		4,191		1,978
Accrued software and licenses		1,589		2,263
Accrued other		9,375		7,269
Total	$	85,295	$	56,149

Redeemable Convertible Preferred Stock (Tables)

12 Months Ended

Dec. 31, 2019

Redeemable Convertible Preferred Stock

Summary of shares of preferred stock authorized and outstanding

The Company had the following shares of preferred stock authorized and outstanding at December 31, 2019:


		Preferred
	Preferred	Shares Issued
	Shares	and
	Authorized	Outstanding	Carrying Value
Series E-1 redeemable convertible preferred stock	54,901	54,901	$	119,752
Series F redeemable convertible preferred stock	78,445	55,349		138,619
Total	133,346	110,250	$	258,371

The Company had the following shares of preferred stock authorized and outstanding at December 31, 2018:


		Preferred
	Preferred	Shares Issued
	Shares	and
	Authorized	Outstanding	Carrying Value
Series E-1 redeemable convertible preferred stock	54,901	54,901	$	119,427
Series F redeemable convertible preferred stock	78,445	57,068		141,850
Total	133,346	111,969	$	261,277

The Company had the following shares of preferred stock authorized and outstanding at December 31, 2017:


		Preferred
	Preferred	Shares Issued
	Shares	and
	Authorized	Outstanding	Carrying Value
Series E-1 redeemable convertible preferred stock	54,901	54,901	$	119,009

Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of assumptions used to measure fair value


	2019		2018
Risk free interest rate	1.95	%	2.80	%
Expected term (in years)	6.02		6.11
Expected volatility	41.48	%	41.98	%
Expected dividend yield	0	%	0	%

Schedule of stock option activity

The following table shows stock option activity for the years ended December 31, 2019, 2018 and 2017:


								Weighted
						Weighted		Average
	Number of Shares					Average		Remaining	Aggregate
	Time					Exercise		Term	Intrinsic
	Based		PSP	LTIP	Total	Price		(years)	Value
Outstanding at December 31, 2016	$	44,530	—	—	44,530	$	0.22	8.24	$	30,680
Granted		14,165	—	5,131	19,296		1.17
Exercised		(1,306)	—	—	(1,306)		0.15
Forfeited		(958)	—	—	(958)		0.61
Outstanding at December 31, 2017	$	56,431	—	5,131	61,562	$	0.51	8.00	$	32,401
Granted		13,564	5,320	35,058	53,942		1.18
Exercised		(2,297)	—	—	(2,297)		0.25
Forfeited		(1,171)	(159)	—	(1,330)		0.88
Outstanding at December 31, 2018	$	66,527	5,161	40,189	111,877	$	0.84	8.15	$	69,765
Granted		16,278	6,263	5,628	28,169		1.65
Exercised		(2,837)	(112)	—	(2,949)		0.41
Forfeited		(1,196)	(79)	—	(1,275)		1.19
Outstanding at December 31, 2019	$	78,772	11,233	45,817	135,822	$	1.01	7.64	$	203,431
Time Vesting*					75,170	$	0.84	7.01	$	125,849
PSP**					10,719	$	1.44	8.92	$	11,484
LTIP**					8,568	$	1.21	8.42	$	11,129

* Adjusted for assumed forfeitures

** Adjusted for assumed forfeitures, excludes post‑2019 vesting

Income Taxes (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

Summary of loss before provision (benefit) for income taxes


	Year Ended December 31,
	2019		2018		2017
United States	$	(142,198)	$	(76,122)	$	(75,445)
Foreign		1		7		99
Loss before provision for (benefit from) income taxes	$	(142,197)	$	(76,115)	$	(75,346)

Components of the provision (benefit) for income taxes

Three and six months ended June 30, 2020 and June 30, 2019 is as follows:


	Three months ended June 30,				Six months ended June 30,
	2020		2019		2020		2019
Provisions for income taxes	$	323	$	7	$	332	$	16


	Year Ended December 31,
	2019		2018		2017
Current:
Federal	$	—	$	—	$	—
State		—		—		—
Foreign		4		86		65
Total current provision		4		86	$	65
Deferred:
Federal	$	—	$	9	$	36
State		54		10		109
Foreign		—		—		—
Total deferred provision		54		19		145
Total provision	$	58	$	105	$	210

Reconciliation between income taxes computed at statutory rate to the provision


	Year Ended December 31,
	2019		2018		2017
Provision for income taxes at statutory rate	$	(29,863)	$	(15,984)	$	(25,400)
Prior year provision true-ups		3,164		(157)		982
State taxes, net of federal benefit		(7,522)		(7,525)		(2,769)
Certain stock-based compensation expenses		2,412		430		536
Non-deductible lobbying expenses		1,885		1,352		2,505
Non-deductible acquisition expenses		2,068		—		—
Change in valuation allowance		19,988		21,584		(66,370)
Impact of federal rate change on net deferred taxes		—		—		90,889
Net operating loss write-off		7,246		—		—
Other		680		405		(163)
Provision for income taxes	$	58	$	105	$	210

Components of deferred tax assets and liabilities


	As of December 31,
	2019		2018
Deferred tax assets:
Stock-based compensation	$	4,552	$	3,472
Intangible assets		123		187
Fixed assets		—		365
Accrual and other temporary differences		20,907		12,273
Credit carryforwards		15		15
Net operating loss carryforwards		217,836		203,180
Total deferred tax assets:	$	243,433	$	219,492
Deferred tax liability:
Capitalized software costs		(6,335)		(4,364)
Fixed assets		(2,035)		—
Total Net Deferred Tax Assets		235,063		215,128
Valuation allowance		(235,280)		(215,292)
Net deferred tax liabilities	$	(217)	$	(164)

Commitments and Contingencies (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

Schedule of future minimum lease payments

Future minimum lease payments are as follows:


Years ending December 31,
From July 1, 2020 to December 31, 2020	$	8,435
2021		15,668
2022		13,947
2023		13,637
2024		12,029
Thereafter		35,766
Total	$	99,482


Years ending December 31,
2020	$	10,067
2021		8,300
2022		8,374
2023		8,292
2024		7,310
Thereafter		23,685
Total	$	66,028

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


Years ending December 31,
2020(a)	$	74,390
2021		54,725
2022		33,885
2023		13,689
2024		4,950
Thereafter		4,100
Total	$	185,739

(a) 2020 balance includes $13,880 of contingent success fees.

Revenue Recognition (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

Schedule of disaggregates revenue from contracts with customers


	Three months ended June 30,				Six Months ended June 30,
	2020		2019		2020		2019
Online gaming	$	55,409	$	56,112	$	139,114	$	121,402
Gaming software		14,954		—		14,954		—
Other		568		1,278		5,405		4,080
Total Revenue	$	70,931	$	57,390	$	159,473	$	125,482


	Years Ended December 31,
	2019		2018(a)		2017(a)
Online Gaming(b)	$	308,177	$	219,131	$	189,779
Other		15,233		7,146		2,065
Total revenue	$	323,410	$	226,277	$	191,844

(a) As disclosed in Note 2, prior period amounts have not been adjusted under the modified retrospective method of adoption of Topic 606.

(b) Online Gaming includes DFS, iGaming and Sportsbook. These revenue streams have similar attributes and the same pattern of recognition.

Loss Per Share (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

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:


	Three months ended June 30,				Six months ended June 30,
	2020		2019		2020		2019
Net loss	$	(161,437)	$	(28,113)	$	(230,117)	$	(57,667)
Basic and diluted weighted-average common shares outstanding		291,992		184,723		238,104		184,234
Loss per share attributable to common stockholders:
Basic and diluted	$	(0.55)	$	(0.15)	$	(0.97)	$	(0.31)


	Years ended December 31,
(in thousands except per share data):	2019		2018		2017
Net loss	$	(142,734)	$	(76,220)	$	(75,556)
Less: accretion of preferred share issuance costs		(992)		(678)		(1,513)
Net loss attributable to common stockholders	$	(143,726)	$	(76,898)	$	(77,069)
Basic and diluted weighted average common share outstanding		386,793		381,821		142,451
Loss per share attributable to common shareholders:
Basic and diluted	$	(0.37)	$	(0.20)	$	(0.54)

Schedule of securities and Convertible Notes


	June 30, 2020	June 30, 2019
Warrants	2,327	3,783
Stock options	62,912	48,267
Total	65,239	52,050


	Years ended December 31,
	2019	2018	2017
Warrants	515	2,422	2,080
Stock options	135,823	111,877	61,562
Convertible Notes(a)	20,952	—	—
Total	157,290	114,299	63,642

Represents the conversion of the outstanding balance plus accrued interest divided by the stated conversion price of 3.31. These notes are contingently issuable as of December 31, 2019.

Segment Information (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of Geographical Areas


	Years ended December 31,
	2019		2018		2017
United States	$	318,144	$	219,415	$	187,261
Other		5,266		6,862		4,583
Total revenue	$	323,410	$	226,277	$	191,844

Description of Business (Details)	12 Months Ended
Description of Business (Details)	Dec. 31, 2019 state location
Number of states the company operates in	20
Number of states that entity operates in which have introduced legislation	2
Number of states that entity does not operate in which have introduced legislation	1
Number of state that currently enjoy positive legal opinions	2
IOWA
Number of locations in which the company has retail sportsbooks \| location	3

Summary of Significant Accounting Policies and Practices - Going Concern (Details) - USD ($) $ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Summary of Significant Accounting Policies and Practices
Operating cash flows	$ (134,971)	$ (39,813)	$ (78,880)	$ (45,579)	$ (88,437)

Summary of Significant Accounting Policies and Practices - Property and Equipment, net (Details)	6 Months Ended	12 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Computer equipment and software
Accounting Policies [Line Items]
Estimated useful lives	3 years	3 years
Furniture and fixtures
Accounting Policies [Line Items]
Estimated useful lives	7 years	7 years
Minimum \| Leasehold improvements
Accounting Policies [Line Items]
Estimated useful lives	1 year	1 year
Maximum \| Leasehold improvements
Accounting Policies [Line Items]
Estimated useful lives	10 years	10 years

Summary of Significant Accounting Policies and Practices - Intangible Assets, Net (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Accounting Policies [Line Items]
Impairment of goodwill		$ 0	$ 0	$ 0
User relationships
Accounting Policies [Line Items]
Weighted Average Amortization Period	5 years
Internally developed software
Accounting Policies [Line Items]
Weighted Average Amortization Period		3 years
Minimum \| User relationships
Accounting Policies [Line Items]
Weighted Average Amortization Period		6 years
Minimum \| Internally developed software
Accounting Policies [Line Items]
Weighted Average Amortization Period	3 years
Maximum \| User relationships
Accounting Policies [Line Items]
Weighted Average Amortization Period		11 years
Maximum \| Internally developed software
Accounting Policies [Line Items]
Weighted Average Amortization Period	4 years

Summary of Significant Accounting Policies and Practices - Additional information (Details) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2020 USD ($)	Jun. 30, 2019 USD ($)	Jun. 30, 2020 USD ($)	Jun. 30, 2019 USD ($)	Dec. 31, 2019 USD ($) Institution	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)
Accounting Policies [Line Items]
Deposit					$ 2,434	$ 1,504
Certificate of deposit					$ 403
Number of financial institutions in which company maintains cash and cash reserve for users \| Institution					5
Number of financial institutions in which company maintains majority of cash and cash reserve for users \| Institution					1
DFS Entry fee					$ 10,000
Revenue recognized related to breakage	$ 107	$ 82	$ 200	$ 716	1,179	421	$ 1,800
Advertising and promotion costs					$ 152,203	$ 124,541	$ 137,121
D K F S L L C
Accounting Policies [Line Items]
Equity method investment ownership percentage					46.00%

Property and Equipment (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
Property and Equipment (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Property, Plant and Equipment [Line Items]
Property and Equipment	$ 47,774		$ 47,774		$ 32,949	$ 17,479
Accumulated depreciation	(10,772)		(10,772)		(7,004)	(3,377)
Property and Equipment, net	37,002		37,002		25,945	14,102
Depreciation expense	2,296	$ 1,149	3,740	$ 1,976	4,131	1,185	$ 1,934
Loss on disposal of fixed assets					730	0	$ 185
Computer equipment and software
Property, Plant and Equipment [Line Items]
Property and Equipment	19,676		19,676		9,685	5,537
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property and Equipment	7,540		7,540		5,891	4,018
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and Equipment	$ 20,558		$ 20,558		$ 17,373	$ 7,924

Intangible Assets and Goodwill (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount					$ 59,084	$ 32,516
Accumulated Amortization					(25,145)	(15,640)
Net	$ 542,095		$ 542,095		33,939	16,876
Amortization expense	16,372	$ 2,125	$ 19,632	$ 4,223	9,505	6,314	$ 4,367
User relationships
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period			5 years
Gross Carrying Amount					3,328	3,328
Accumulated Amortization					$ (3,328)	(3,013)
Net	93,813		$ 93,813			315
Internally developed software
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period					3 years
Gross Carrying Amount					$ 43,753	28,937
Accumulated Amortization					(21,188)	(12,572)
Net	$ 28,690		$ 28,690		22,565	16,365
State licenses
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount					12,003	251
Accumulated Amortization					(629)	(55)
Net					$ 11,374	$ 196
Weighted Average \| User relationships
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period					2 years 4 months 6 days	6 months
Weighted Average \| Internally developed software
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period						2 years 5 months 12 days
Weighted Average \| State licenses
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period					4 years 10 months 10 days	9 months

Intangible Assets and Goodwill - Estimated future amortization of intangible assets (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019	Dec. 31, 2018
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
2020		$ 13,048
2021		10,250
2022		6,241
2023		2,200
2024 and thereafter		2,200
Net	$ 542,095	$ 33,939	$ 16,876

Intangible Assets and Goodwill - Goodwill (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Intangible Assets and Goodwill
Balance as of December 31, 2019	$ 4,738	$ 4,738	$ 4,399
Goodwill acquired	470,945		339
Balance as of June 30, 2020	$ 480,578	4,738	4,738	$ 4,399
Impairment of goodwill		$ 0	$ 0	$ 0

Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019	Dec. 31, 2018
Accounts Payable and Accrued Expenses
Accounts payable		$ 16,618	$ 11,626
Accrued payroll and related expenses	$ 18,432	17,770	9,857
Accrued litigation, lobbying and compliance		6,153	5,566
Accrued loyalty points		4,131	7,272
Accrued marketing fees	22,681	11,855	3,237
Accrued operating taxes		5,745	2,741
Accrued partnership fees		7,868	4,340
Accrued professional fees		4,191	1,978
Accrued software and licenses		1,589	2,263
Accrued other		9,375	7,269
Accounts Payable and Accrued Liabilities, Current, Total	$ 122,946	$ 85,295	$ 56,149

Current and Long-term Liabilities - Term Note (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	12 Months Ended
	Aug. 31, 2019	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Jun. 30, 2020
Term Note
Funds withdrawn		$ 6,750			$ 0
Interest expense		276
Pacific Western Bank Revolving Line of Credit
Term Note
Maximum borrowing capacity	$ 50,000	50,000	$ 40,000
Funds withdrawn		6,750	3,750
Net facility available		$ 38,769	$ 31,769
Threshold amount of borrowing above which success fee payments will be required	$ 45,000
Percentage of lien on all issued and outstanding shares of capital stock of foreign subsidiaries	65.00%
Interest rate in effect		6.50%	6.50%
Interest expense		$ 258	$ 256	$ 284
Pacific Western Bank Revolving Line of Credit \| Common Stock Warrants related to Credit Agreement
Term Note
Number of stock to be purchased by warrants	173,913
Price per warrant	$ 0.23
Pacific Western Bank Revolving Line of Credit \| Minimum
Term Note
Success fee required when the outstanding principal amount exceeds threshold amount	$ 600
Pacific Western Bank Revolving Line of Credit \| Maximum
Term Note
Success fee required when the outstanding principal amount exceeds threshold amount	$ 650
Pacific Western Bank Revolving Line of Credit \| Prime rate
Term Note
Variable interest rate spread	1.00%
Variable annual interest rate floor	6.50%
Quarterly in arrears fee per annum	0.25%

Current and Long-term Liabilities - Preferred Stock (Details) - Preferred Stock Investor in Series F Note $ in Thousands	3 Months Ended	21 Months Ended
	Mar. 31, 2019 D	Sep. 26, 2021 D	Dec. 31, 2019 USD ($)	Aug. 26, 2019 USD ($)
Debt Instruments
Note amount \| $				$ 11,000
Threshold gross proceeds of equity financing to be obtained when determining the maturity date \| $			$ 100,000
Interest rate	2.33%
Number of days as basis for computing interest per annum \| D	365
Forecast
Debt Instruments
Interest rate		7.50%
Number of days as basis for computing interest per annum \| D		365

Current and Long-term Liabilities - Other (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Jun. 30, 2020	Dec. 31, 2018
Liabilities, Other than Long-term Debt, Noncurrent [Abstract]
Estimated liability for indirect taxes	$ 35,899		$ 27,238
Reduction in rent expense due to the release of the deferred rent balance	377
Deferred rent	1,125		$ 9,747
Deferred rent , short term	1,125	$ 1,156
Deferred rent , long term	$ 9,747	$ 9,634

Convertible Promissory Notes (Details) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2019 USD ($) item $ / shares
Debt Instrument [Line Items]
Percentage of voting power the entity will be obligated to repay the Convertible Notes	50.00%
Prepayment premium as a percentage of original principal amount	15.00%
Conversion price \| $ / shares	$ 3.31
Fair value of this embedded compound derivative	$ 457
Total interest expense	$ 276
Series F Preferred Stock
Debt Instrument [Line Items]
Conversion price \| $ / shares	$ 3.31
Subordinated convertible promissory notes
Debt Instrument [Line Items]
Aggregate principal amount	$ 69,123
Interest rate	10.00%
Fees on issuance of debt, as a percentage of gross proceeds	1.50%
Subordinated convertible promissory notes \| Qualified Financing
Debt Instrument [Line Items]
Consecutive trading days on volume weighted average trading price of shares \| item	5
Subordinated convertible promissory notes \| Minimum \| Qualified Financing
Debt Instrument [Line Items]
Proceeds from issuance of equity securities	$ 100,000
Subordinated convertible promissory notes \| Maximum \| Non- Qualified Financing
Debt Instrument [Line Items]
Proceeds from issuance of equity securities	$ 100,000

Redeemable Convertible Preferred Stock (Details) $ / shares in Units, $ in Thousands		1 Months Ended	12 Months Ended
	Aug. 17, 2023 installment	Sep. 30, 2019 USD ($) shares	Dec. 31, 2019 USD ($) $ / shares shares	Dec. 31, 2018 USD ($) $ / shares shares	Dec. 31, 2017 USD ($) $ / shares shares
Class of Stock [Line Items]
Redeemable convertible preferred stock, shares authorized \| shares			133,346	133,346
Redeemable convertible preferred stock, shares issued \| shares			110,250	111,969
Redeemable convertible preferred stock, carrying value \| $			$ 258,371	$ 261,277
Series E-1 redeemable convertible preferred stock
Class of Stock [Line Items]
Redeemable convertible preferred stock, shares authorized \| shares			54,901	54,901	54,901
Redeemable convertible preferred stock, shares issued \| shares			54,901	54,901	54,901
Redeemable convertible preferred stock, shares outstanding \| shares			54,901	54,901	54,901
Redeemable convertible preferred stock, carrying value \| $			$ 119,752	$ 119,427	$ 119,009
Conversion rate			$ 1.57	$ 1.57	$ 1.12
Preferred stock, dividend declared			0
Preferred stock, dividend paid			0
Original issue prices			2.20
Conversion price			1.57
Share conversion factors			$ 1.40
Shares issued upon conversion \| shares			77,132
Series E-1 redeemable convertible preferred stock \| Forecast
Class of Stock [Line Items]
Number of annual installments in which stock may redeem \| installment	3
Threshold period of written notice requesting redemption	60 days
Series F redeemable convertible preferred stock
Class of Stock [Line Items]
Redeemable convertible preferred stock, shares authorized \| shares			78,445	78,445
Redeemable convertible preferred stock, shares issued \| shares			55,349	57,068
Redeemable convertible preferred stock, shares outstanding \| shares			55,349	57,068
Redeemable convertible preferred stock, carrying value \| $			$ 138,619	$ 141,850
Repurchase of Preferred Stock and Issuance of Promissory Note \| $		$ 11,000
Repurchase of Preferred Stock and Issuance of Promissory Note (in shares) \| shares		4,598
Payments for issuance of convertible notes \| $		$ 722	$ 722
Conversion rate			$ 2.55	$ 2.55
Preferred stock, dividend declared			0
Preferred stock, dividend paid			0
Original issue prices			2.55
Conversion price			2.55
Share conversion factors			$ 1.00
Shares issued upon conversion \| shares			55,349

Common Stock (Details)	12 Months Ended
Common Stock (Details)	Dec. 31, 2019 Vote $ / shares shares	Dec. 31, 2018 $ / shares shares
Common Stock
Common shares, shares authorized	735,000	735,000
Common shares, par value \| $ / shares	$ 0.001	$ 0.001
Common shares, shares issued	389,610	384,009
Common shares, shares outstanding	389,610	384,009
Number of votes per share \| Vote	1
Common stock, dividend declared per share \| $ / shares	$ 0

Stock-Based Compensation (Details)	6 Months Ended	12 Months Ended
Stock-Based Compensation (Details)	Jun. 30, 2020	Dec. 31, 2017 item	Dec. 31, 2012	Dec. 31, 2019 shares	Dec. 31, 2018 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
No restricted stock or other forms of equity based awards have been issued				0	0
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	4 years
Contractual term	10 years
2012 Plan \| Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for issuance				5,614	12,313
Vesting period			4 years
Contractual term			10 years
Employee ownership percentage which results in higher exercise price			10.00%
Higher exercise price minimum, as a percentage, based on employee stock ownership			110.00%
2017 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share reserve				130,825
Number of types of performance based awards \| item		2
2017 Plan \| Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for issuance				75,671
Exercise Price As Percent of Fair Value		100.00%
2017 Plan \| Service Based Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period		4 years
Contractual term		10 years

Stock-Based Compensation - Valuation Assumptions (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Proceeds from the exercise of stock options			$ 6,066	$ 533	$ 1,148	$ 552	$ 180
Unrecognized stock-based compensation	$ 272,791		$ 272,791
Recognition period for unrecognized share-based compensation			2 years 8 months 27 days
Share-based compensation expense	$ 54,486	$ 1,844	$ 59,328	$ 6,675
Stock options
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Risk free interest rate					1.95%	2.80%
Expected term (in years)					6 years 7 days	6 years 1 month 10 days
Expected volatility					41.48%	41.98%
Expected dividend yield					0.00%	0.00%
Weighted average grant date fair value per share					$ 0.72	$ 0.54
Proceeds from the exercise of stock options					$ 1,148	$ 552
Aggregate intrinsic value of stock options exercised					3,406	2,234
Grant date fair value of stock options vested					9,803	7,334	3,351
Unrecognized stock-based compensation					$ 19,769
Recognition period for unrecognized share-based compensation					2 years 11 days
Share-based compensation expense					$ 17,614	7,210	4,500
LTIP
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Share-based compensation expense					5,236	0	0
PSP
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Share-based compensation expense					$ 5,221	$ 0	$ 0

Stock-Based Compensation - Warrant For Marketing Services (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended		6 Months Ended		12 Months Ended
	Sep. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Class of Warrant or Right [Line Items]
Share-based compensation expense		$ 54,486	$ 1,844	$ 59,328	$ 6,675
Marketing Services Warrant \| Non-employee
Class of Warrant or Right [Line Items]
Number of stock to be purchased by warrants	341
Exercise price of warrants	$ 0.01
Contractual term	5 years
Share-based compensation expense						$ 444

Stock-Based Compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Number of shares
Outstanding at the beginning	48,026,000	39,560,000	39,560,000
Number of shares granted	19,401,000	26,614,000
Number of shares exercised	(3,855,000)	(1,316,000)
Number of shares forfeited	(660,000)	(683,000)
Outstanding at the end	62,912,000	64,175,000	48,026,000	39,560,000
Weighted average exercise price
Outstanding (in dollars per share)	$ 2.86	$ 2.38	$ 2.38
Weighted average exercise price granted	0.61	4.70
Weighted average exercise price exercised	1.61	0.96
Weighted average exercise price forfeited	2.53	3.32
Outstanding at the end (in dollars per share)	$ 2.26	$ 2.82	$ 2.86	$ 2.38
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Weighted average remaining term	7 years 9 months 15 days	8 years 1 month 10 days	7 years 7 months 21 days	8 years 1 month 24 days
Aggregate intrinsic value of stock options exercised	$ 1,968,051	$ 90,252	$ 203,431	$ 69,765
Stock options
Number of shares
Outstanding at the beginning	135,822	111,877	111,877	61,562	44,530
Number of shares granted			28,169	53,942	19,296
Number of shares exercised			(2,949)	(2,297)	(1,306)
Number of shares forfeited			(1,275)	(1,330)	(958)
Outstanding at the end			135,822	111,877	61,562	44,530
Weighted average exercise price
Outstanding (in dollars per share)	$ 1.01	$ 0.84	$ 0.84	$ 0.51	$ 0.22
Weighted average exercise price granted			1.65	1.18	1.17
Weighted average exercise price exercised			0.41	0.25	0.15
Weighted average exercise price forfeited			1.19	0.88	0.61
Outstanding at the end (in dollars per share)			$ 1.01	$ 0.84	$ 0.51	$ 0.22
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Weighted average remaining term			7 years 7 months 21 days	8 years 1 month 24 days	8 years	8 years 2 months 27 days
Aggregate intrinsic value of stock options exercised			$ 203,431	$ 69,765	$ 32,401	$ 30,680
Stock options \| Adjusted for assumed forfeitures
Number of shares
Outstanding at the beginning	75,170
Outstanding at the end			75,170
Weighted average exercise price
Outstanding (in dollars per share)	$ 0.84
Outstanding at the end (in dollars per share)			$ 0.84
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Weighted average remaining term			7 years 4 days
Aggregate intrinsic value of stock options exercised			$ 125,849
Service Based Stock Option
Number of shares
Outstanding at the beginning	78,772	66,527	66,527	56,431	44,530
Number of shares granted			16,278	13,564	14,165
Number of shares exercised			(2,837)	(2,297)	(1,306)
Number of shares forfeited			(1,196)	(1,171)	(958)
Outstanding at the end			78,772	66,527	56,431	44,530
PSP
Number of shares
Outstanding at the beginning	11,233	5,161	5,161
Number of shares granted			6,263	5,320
Number of shares exercised			(112)
Number of shares forfeited			(79)	(159)
Outstanding at the end			11,233	5,161
PSP \| Adjusted for assumed forfeitures
Number of shares
Outstanding at the beginning	10,719
Outstanding at the end			10,719
Weighted average exercise price
Outstanding (in dollars per share)	$ 1.44
Outstanding at the end (in dollars per share)			$ 1.44
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Weighted average remaining term			8 years 11 months 1 day
Aggregate intrinsic value of stock options exercised			$ 11,484
LTIP
Number of shares
Outstanding at the beginning	45,817	40,189	40,189	5,131
Number of shares granted			5,628	35,058	5,131
Outstanding at the end			45,817	40,189	5,131
LTIP \| Adjusted for assumed forfeitures
Number of shares
Outstanding at the beginning	8,568
Outstanding at the end			8,568
Weighted average exercise price
Outstanding (in dollars per share)	$ 1.21
Outstanding at the end (in dollars per share)			$ 1.21
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Weighted average remaining term			8 years 5 months 1 day
Aggregate intrinsic value of stock options exercised			$ 11,129

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Loss before provision for (benefit from) income taxes:
United States					$ (142,198)	$ (76,122)	$ (75,445)
Foreign					1	7	99
Loss before provision for (benefit from) income taxes					(142,197)	(76,115)	(75,346)
Current:
Foreign					4	86	65
Total current provision					4	86	65
Deferred:
Federal						9	36
State					54	10	109
Total deferred provision			$ (201)	$ 12	54	19	145
Total provision	$ 323	$ 7	$ 332	$ 16	$ 58	$ 105	$ 210

Income Taxes - Reconciliation (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Effective Income Tax Rate Reconciliation, Amount [Abstract]
Provision for income taxes at statutory rate					$ (29,863)	$ (15,984)	$ (25,400)
Prior year provision true-ups					3,164	(157)	982
State taxes, net of federal benefit					(7,522)	(7,525)	(2,769)
Certain stock-based compensation expenses					2,412	430	536
Non-deductible lobbying expenses					1,885	1,352	2,505
Non-deductible acquisition expenses					2,068
Change in valuation allowance					19,988	21,584	(66,370)
Impact of federal rate change on net deferred taxes							90,889
Net operating loss write-off					7,246
Other					680	405	(163)
Total provision	$ 323	$ 7	$ 332	$ 16	$ 58	$ 105	$ 210

Income Taxes - Reconciliation Narrative (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2019 USD ($)
Income Taxes
Net operating loss write-off	$ 7,246
Change in valuation allowance related to write-off	(7,246)
Net impact on provision for income taxes, net operating losses	$ 0

Income Taxes - Tax Cuts And Jobs Act (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Effect of Tax Cuts and Jobs Act [Abstract]
Federal tax rate	0.20%	0.03%	0.14%	0.03%	21.00%	21.00%	35.00%
Expected future federal tax rate					21.00%	21.00%
Remeasurement of deferred tax asset					$ (90,890)
Change in valuation allowance for Tax Cuts and Jobs Act					91,050
Net impact on provision for income taxes, remeasurement					$ 160
Limitation on net operating loss carryovers, as percentage of taxable income					80.00%	80.00%
Income tax benefit related to schedule of indefinite lived intangibles							$ 230
Provisional amount recorded for transition tax					$ 36	$ 15
Net impact on provision for income taxes, provisional tax					$ 0	0
Measurement period adjustment						$ 0
Accounting complete						true

Income Taxes - Deferred Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Deferred tax assets:
Stock-based compensation	$ 4,552	$ 3,472
Intangible assets	123	187
Fixed assets		365
Accrual and other temporary differences	20,907	12,273
Credit carryforwards	15	15
Net operating loss carryforwards	217,836	203,180
Total deferred tax assets:	243,433	219,492
Deferred tax liability:
Capitalized software costs	(6,335)	(4,364)
Fixed assets	(2,035)
Total Net Deferred Tax Assets	235,063	215,128
Valuation allowance	(235,280)	(215,292)
Net deferred tax liabilities	(217)	(164)
Change in valuation allowance	$ 19,988	$ 21,584	$ (66,370)

Income Taxes - Net Operating Loss (Details) - USD ($)	12 Months Ended
Income Taxes - Net Operating Loss (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Operating Loss Carryforwards [Line Items]
Operating loss carryforward not expected to be utilized	$ 34,504,000
Net operating loss write-off	7,246,000
Operating loss carryforward subject to 80% taxable income limitation	$ 134,400
Tax Cuts And Jobs Act Percentage Of Carryover Of NOL Limit	80.00%	80.00%
Federal
Operating Loss Carryforwards [Line Items]
Operating loss carryforward	$ 676,040,000
State
Operating Loss Carryforwards [Line Items]
Operating loss carryforward	759,040,000
Foreign \| Malta
Operating Loss Carryforwards [Line Items]
Operating loss carryforward	171,000
Foreign \| Australia
Operating Loss Carryforwards [Line Items]
Operating loss carryforward	$ 100,000

Income Taxes - Tax Credit Carryforward (Details) $ in Thousands	Dec. 31, 2019 USD ($)
Research credit
Tax Credit Carryforward [Line Items]
Tax credit carryforward	$ 15

Income Taxes - Net Operating Loss Carryforward Limitations (Details)	Dec. 31, 2019 USD ($)
Operating Loss Carryforwards [Line Items]
Operating loss carryforward subject to 80% taxable income limitation	$ 134,400
Federal \| 2020
Operating Loss Carryforwards [Line Items]
Operating loss carryforward subject to 80% taxable income limitation	295,605,000
Federal \| 2021
Operating Loss Carryforwards [Line Items]
Operating loss carryforward subject to 80% taxable income limitation	77,069,000
Federal \| 2022
Operating Loss Carryforwards [Line Items]
Operating loss carryforward subject to 80% taxable income limitation	25,247,000
Federal \| 2023 - 2037
Operating Loss Carryforwards [Line Items]
Operating loss carryforward subject to 80% taxable income limitation	$ 15,051,000

Related-Party Transactions (Details) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
Related-Party Transactions (Details) - USD ($)	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Related Party Transaction [Line Items]
2021	$ 51,487,000		$ 51,487,000
Aggregate commitment	145,898,000		145,898,000
Media Purchase Agreement
Related Party Transaction [Line Items]
2017					$ 15,000
2018					15,000
2019					15,000
2020					15,000
2021					15,000
Additional contingent commitment					5,000
Aggregate commitment	15,000,000		15,000,000
Related party expense	1,241,000	$ 88,000	3,400,000	$ 2,216,000	8,411,000	$ 23,313,000
Due to related party	$ 1,563,000		$ 1,563,000		2,413,000	428,000
Media Purchase Agreement \| Amended agreement
Related Party Transaction [Line Items]
2019					(5,000)
2020					5,000
2021					5,000
Aggregate commitment					15,000
DKFC, an equity method affiliate
Related Party Transaction [Line Items]
Receivables from related party					959,000
Series E-1 redeemable convertible preferred stock \| Private Placement Agent
Related Party Transaction [Line Items]
Related party expense					0	0	$ 2,066,000
Temporary equity owned by related party					$ 119,752,000	$ 119,427,000

Commitments and Contingencies (Details) € in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
Commitments and Contingencies (Details) € in Thousands	Jun. 30, 2020 USD ($)	Jun. 30, 2019 USD ($)	Jun. 30, 2020 USD ($)	Jun. 30, 2019 USD ($)	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Nov. 30, 2019 EUR (€)	Nov. 30, 2019 USD ($)
Property, Plant and Equipment [Line Items]
Lease payments	$ 99,482,000		$ 99,482,000		$ 66,028,000
Total commitment	145,898,000		145,898,000
Escrow deposit					3,409,000
Rent expenses	$ 4,702	$ 2,406	$ 7,785	$ 4,597	$ 10,412,000	$ 5,266,000	$ 3,431,000
Office space in Dublin
Property, Plant and Equipment [Line Items]
Term of contract					12 years
Lease payments								€ 598	$ 651,000
Corporate office facilities
Property, Plant and Equipment [Line Items]
Term of contract					10 years
Total commitment					$ 35,642,000

Commitments and Contingencies - Future Minimum Lease Payments (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Commitments and Contingencies
2020		$ 10,067
2021	$ 15,668	8,300
2022	13,947	8,374
2023	13,637	8,292
2024	12,029	7,310
Thereafter	35,766	23,685
Total	$ 99,482	$ 66,028

Commitments and Contingencies - Future Minimum Payments Under the Non-Cancelable (Details) $ in Thousands	Dec. 31, 2019 USD ($)
Other Commitments [Line Items]
2020	$ 74,390
2021	54,725
2022	33,885
2023	13,689
2024	4,950
Thereafter	4,100
Total	185,739
Contingent Success Fee
Other Commitments [Line Items]
Total	$ 13,880

Commitments and Contingencies - Other Contractual Obligations and Contingencies (Details) - USD ($)	Dec. 31, 2019	Dec. 22, 2019	Oct. 31, 2016
Other Commitments [Line Items]
Other Commitment	$ 185,739,000
Contingent Success Fee
Other Commitments [Line Items]
Other Commitment	$ 13,880,000
Contingent Success Fee \| Third Party Advisors \| DraftKings Merger
Other Commitments [Line Items]
Other Commitment		$ 1,280,000
Contingent Success Fee \| Pacific Western Bank
Other Commitments [Line Items]
Threshold limit for payment of success fee			$ 45,000
Contingent Success Fee \| Pacific Western Bank \| Minimum
Other Commitments [Line Items]
Other Commitment			600,000
Contingent Success Fee \| Pacific Western Bank \| Maximum
Other Commitments [Line Items]
Other Commitment			$ 650,000
Contingent Success Fee \| Private Placement Agent \| SBTech Acquisition
Other Commitments [Line Items]
Other Commitment		5,000
Contingent Success Fee \| Private Placement Agent \| DraftKings Merger
Other Commitments [Line Items]
Other Commitment		$ 7,000

Commitments and Contingencies - Settlement Liability (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Other Commitments [Line Items]
Penalty cost	$ 6,000
Period of settlement	4 years
Accrued current liabilities		$ 3,272
Payments to the agreements	$ 400	400
NYAG
Other Commitments [Line Items]
Accrued current liabilities		2,876
Accrued non current liabilities		$ 0
MAAG
Other Commitments [Line Items]
Penalty cost	$ 1,300
Period of settlement	3 years

Commitments and Contingencies - Letters of Credit (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019	Dec. 31, 2018
Letter of Credit [Member] \| Pacific Western Bank
Other Commitments [Line Items]
Letters of Credit Outstanding, Amount	$ 5,053	$ 4,481	$ 4,481

Retirement Plans (Details) - USD ($) $ in Thousands	12 Months Ended
Retirement Plans (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Retirement Plans
Retirement Plans	$ 1,342	$ 842	$ 0

Revenue Recognition (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
Revenue Recognition (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Mar. 31, 2020	Mar. 31, 2019
Disaggregation of Revenue [Line Items]
Deferred revenue	$ 24,759	$ 13,280	$ 24,759	$ 13,280	$ 20,760	$ 13,581		$ 24,094	$ 14,074
Total revenue	70,931	57,390	159,473	125,482	323,410	226,277	$ 191,844
Online Gaming
Disaggregation of Revenue [Line Items]
Total revenue	55,409	56,112	139,114	121,402	308,177
Other
Disaggregation of Revenue [Line Items]
Total revenue	$ 568	$ 1,278	$ 5,405	$ 4,080	$ 15,233
Calculated under Revenue Guidance in Effect before Topic 606 [Member]
Disaggregation of Revenue [Line Items]
Total revenue						226,277	191,844
Calculated under Revenue Guidance in Effect before Topic 606 [Member] \| Online Gaming
Disaggregation of Revenue [Line Items]
Total revenue						219,131	189,779
Calculated under Revenue Guidance in Effect before Topic 606 [Member] \| Other
Disaggregation of Revenue [Line Items]
Total revenue						$ 7,146	$ 2,065

Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended				6 Months Ended		12 Months Ended
	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Loss Per Share
Net income (loss)	$ (161,437)	$ (68,680)	$ (28,113)	$ (29,554)	$ (230,117)	$ (57,667)	$ (142,734)	$ (76,220)	$ (75,556)
Less: accretion of preferred share issuance costs							(992)	(678)	(1,513)
Net loss attributable to common stockholders							$ (143,726)	$ (76,898)	$ (77,069)
Weighted average number of ordinary shares outstanding	291,992,000		184,723,000		238,104,000	184,234,000	386,793	381,821	142,451
Basic and diluted (in dollars per share)	$ (0.55)		$ (0.15)		$ (0.97)	$ (0.31)	$ (0.37)	$ (0.20)	$ (0.54)

- 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 - Securities and Convertible Notes (Details) - $ / shares			12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	65,239	52,050	157,290	114,299	63,642
Fair value of this embedded compound derivative			$ 3.31
Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	2,327	3,783	515	2,422	2,080
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	62,912	48,267	135,823	111,877	61,562
Convertible Notes
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total			20,952

Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
Segment Information (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Disaggregation of Revenue [Line Items]
Total revenue	$ 70,931	$ 57,390	$ 159,473	$ 125,482	$ 323,410	$ 226,277	$ 191,844
United States
Disaggregation of Revenue [Line Items]
Total revenue	$ 56,577	$ 55,120	$ 147,387	$ 122,290	318,144	219,415	187,261
Other
Disaggregation of Revenue [Line Items]
Total revenue					$ 5,266	$ 6,862	$ 4,583

Subsequent Events (Details)			1 Months Ended		2 Months Ended	6 Months Ended		12 Months Ended
Subsequent Events (Details)	Mar. 26, 2020 USD ($)	Dec. 22, 2019 EUR (€)	Mar. 31, 2020 USD ($)	Feb. 29, 2020 USD ($)	Feb. 29, 2020 USD ($)	Jun. 30, 2020 USD ($)	Jun. 30, 2019 USD ($)	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)
Subsequent Event [Line Items]
Additional Convertible Notes issued						$ 41,077,000	$ 0	$ 68,087,000
Repayment of term note									$ 1,250,000
Funds withdrawn						$ 0		$ 6,750,000
Subsequent Event
Subsequent Event [Line Items]
Additional Convertible Notes issued				$ 6,750,000
Repayment of term note			$ 44,500,000
Funds from Credit Agreement	$ 1,019,000				$ 40,042,000
Net facility available	50,000
Credit facility	44,500
Funds withdrawn	4,481,000
Letters of credit amount	$ 44,500,000
Diamond Eagle \| SB Tech Acquisition
Subsequent Event [Line Items]
Total consideration \| €		€ 590,000
Cash consideration \| €		€ 180,000
Percentage of the in-the-money vested options of acquiree under the business combination consideration adjustments		30.00%
Equity consideration \| €		€ 410,000

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Mar. 31, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents		$ 76,533,000
Total current assets		261,148,000
Total assets		330,725,000
Current liabilities:
Accounts payable		16,618,000
Accounts payable and accrued expenses		85,295,000
Total current liabilities		255,080,000
Total liabilities		380,305,000
Stockholders' deficit:
Common stock		390,000
Additional paid-in capital		949,186,000
Retained earnings		(998,784,000)
Total stockholders' equity (deficit)	$ (101,951,000)	(307,951,000)
Total liabilities and stockholders' equity (deficit)		330,725,000
Class A common stock
Stockholders' deficit:
Common stock		18,000
Class B common stock
Stockholders' deficit:
Common stock		0
Diamond eagle acquisition
Current assets:
Cash and cash equivalents	157,758	491,225
Prepaid expenses	93,333	319,239
Total current assets	251,091	810,464
Cash and investments held in Trust Account	405,002,234	403,961,209
Total assets	405,253,325	404,771,673
Current liabilities:
Accounts payable		1,493,133
Accounts payable and accrued expenses	1,495,374	1,493,133
Total current liabilities	1,495,374	1,493,133
Deferred underwriting compensation	14,000,000	14,000,000
Total liabilities	15,495,374	15,493,133
Class A common stock subject to possible redemption; 38,475,795 and 38,427,853 shares at approximately $10.00 per share at March 31, 2020 and December 31, 2019, respectively	384,757,950	384,278,530
Stockholders' deficit:
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; none issued and outstanding
Additional paid-in capital	2,210,029	2,689,444
Retained earnings	2,788,820	2,309,409
Total stockholders' equity (deficit)	5,000,001	5,000,010
Total liabilities and stockholders' equity (deficit)	405,253,325	404,771,673
Diamond eagle acquisition \| Class A common stock
Stockholders' deficit:
Common stock	152	157
Diamond eagle acquisition \| Class B common stock
Stockholders' deficit:
Common stock	$ 1,000	$ 1,000

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Preferred shares, par value	$ 0.0001		$ 0.0001
Preferred shares, shares authorized	300,000
Preferred shares, shares issued	0		0
Preferred shares, shares outstanding	0		0
Common shares, par value			$ 0.001	$ 0.001
Common shares, shares authorized			735,000	735,000
Common shares, shares issued			389,610	384,009
Common shares, shares outstanding			389,610	384,009
Class A common stock
Common shares, par value	$ 0.0001		$ 0.0001
Common shares, shares authorized	900,000,000		735,000,000
Common shares, shares issued	354,251,000		184,626,000
Common shares, shares outstanding	354,251,000		184,626,000
Class B common stock
Common shares, par value	$ 0.0001
Common shares, shares authorized	900,000,000
Common shares, shares issued	393,014,000
Common shares, shares outstanding	393,014,000
Diamond eagle acquisition
Preferred shares, par value		$ 0.0001	$ 0.0001
Preferred shares, shares authorized		1,000,000	1,000,000
Preferred shares, shares issued		0	0
Preferred shares, shares outstanding		0	0
Common shares, shares authorized			5,250,000
Diamond eagle acquisition \| Class A common stock
Shares subject to possible redemption		38,475,795	38,427,853
Shares subject to possible redemption, par value per share		$ 10.00	$ 10.00
Common shares, par value		$ 0.0001	$ 0.0001
Common shares, shares authorized		380,000,000	380,000,000
Common shares, shares issued		1,524,205	1,572,147
Common shares, shares outstanding		1,524,205	1,572,147
Diamond eagle acquisition \| Class B common stock
Common shares, par value		$ 0.0001	$ 0.0001
Common shares, shares authorized		20,000,000	20,000,000
Common shares, shares issued		10,000,000	10,000,000
Common shares, shares outstanding		10,000,000	10,000,000

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS	3 Months Ended
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS	Mar. 31, 2020 USD ($) $ / shares shares
Diamond eagle acquisition
General and administrative expenses	$ 718,799
Loss from operations	(718,799)
Other income - interest on Trust Account	1,444,499
Loss before income tax provision and loss from equity method investment	725,700
Income tax expense	246,289
Net loss attributable to common stockholders	479,411
Diamond eagle acquisition \| Class A common stock
Income tax expense	$ 246,289,000
Weighted average number of ordinary shares outstanding \| shares	40,000,000
Net income per common stock, basic \| $ / shares	$ 0.02
Weighted average number of ordinary shares outstanding, diluted \| shares	43,805,838
Net income per common stock diluted \| $ / shares	$ 0.02
Diamond eagle acquisition \| Class B common stock
Weighted average number of ordinary shares outstanding \| shares	10,000,000
Basic and diluted \| $ / shares	$ (0.04)

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - shares			3 Months Ended	12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Mar. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Antidilutive aggregate of excluded number of shares	65,239	52,050		157,290	114,299	63,642
Diamond eagle acquisition \| Class B common stock
Antidilutive aggregate of excluded number of shares			1,312,500

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDER'S EQUITY - USD ($)	Diamond eagle acquisition Common Stock Class A common stock	Diamond eagle acquisition Common Stock Class B common stock	Diamond eagle acquisition Common Stock	Diamond eagle acquisition Additional Paid-in Capital	Diamond eagle acquisition Accumulated Deficit	Diamond eagle acquisition Class B common stock	Diamond eagle acquisition	Common Stock Class A common stock	Common Stock Class B common stock	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Total
Balance at the beginning at Dec. 31, 2016										$ 22,000	$ 3,998,000	$ (704,274,000)	$ (700,254,000)
Balance at the beginning (in shares) at Dec. 31, 2016										22,291
Increase (Decrease) in Stockholders' Equity
Underwriters' discount and offering expenses											(1,513,000)		(1,513,000)
Net income (loss)												(75,556,000)	(75,556,000)
Balance at the end at Dec. 31, 2017										$ 380,000	661,085,000	(779,830,000)	(118,365,000)
Balance at the end (in shares) at Dec. 31, 2017										379,932
Increase (Decrease) in Stockholders' Equity
Shares issued in Offering, net of issuance costs										$ 1,000	339,000		340,000
Shares issued in Offering, net of issuance costs (in shares)										393
Underwriters' discount and offering expenses											(678,000)		(678,000)
Net income (loss)												(76,220,000)	(76,220,000)
Balance at the end at Dec. 31, 2018										$ 384,000	670,439,000	(856,050,000)	(185,227,000)
Balance at the end (in shares) at Dec. 31, 2018										384,009
Increase (Decrease) in Stockholders' Equity
Net income (loss)													(57,667,000)
Balance at the end at Jun. 30, 2019								$ 19,000			948,603,000	(913,717,000)	34,905,000
Balance at the end (in shares) at Jun. 30, 2019								193,265
Balance at the beginning at Dec. 31, 2018										$ 384,000	670,439,000	(856,050,000)	(185,227,000)
Balance at the beginning (in shares) at Dec. 31, 2018										384,009
Increase (Decrease) in Stockholders' Equity
Shares issued in Offering, net of issuance costs										$ 2,000	437,000		439,000
Shares issued in Offering, net of issuance costs (in shares)										1,906
Underwriters' discount and offering expenses											(992,000)		(992,000)
Sale of 6,333,334 Private Placement Warrants at $1.50 per warrant											438,000		438,000
Net income (loss)						$ 1,453,333						(142,734,000)	(142,734,000)
Balance at the end at Dec. 31, 2019	$ 157	$ 1,000	$ 5,000,010	$ 2,689,444	$ 2,309,409		$ 5,000,010			$ 390,000	690,443,000	(998,784,000)	(307,951,000)
Balance at the end (in shares) at Dec. 31, 2019	1,572,147	10,000,000								389,610
Balance at the beginning at Jan. 01, 2019								$ 19,000			932,081,000	(856,050,000)	76,050,000
Balance at the beginning (in shares) at Jan. 01, 2019								190,812
Increase (Decrease) in Stockholders' Equity
Net income (loss)												(29,554,000)	(29,554,000)
Balance at the end at Mar. 31, 2019		$ 1,006		23,994	(675)		24,325	$ 19,000			944,283,000	(885,604,000)	58,698,000
Balance at the end (in shares) at Mar. 31, 2019		10,062,500						191,940
Balance at the beginning at Mar. 26, 2019	$ 0	$ 0	0	0	0		0
Balance at the beginning (in shares) at Mar. 26, 2019	0	0
Increase (Decrease) in Stockholders' Equity
Shares issued in Offering, net of issuance costs		$ 1,006		23,994			25,000
Shares issued in Offering, net of issuance costs (in shares)		10,062,500
Net income (loss)					(675)		(675)
Balance at the end at Mar. 31, 2019		$ 1,006		23,994	(675)		24,325	$ 19,000			944,283,000	(885,604,000)	58,698,000
Balance at the end (in shares) at Mar. 31, 2019		10,062,500						191,940
Balance at the beginning at Mar. 26, 2019	$ 0	$ 0	0	0	0		0
Balance at the beginning (in shares) at Mar. 26, 2019	0	0
Increase (Decrease) in Stockholders' Equity
Shares issued in Offering, net of issuance costs		$ 1,006	25,000	23,994
Shares issued in Offering, net of issuance costs (in shares)		10,062,500
Sale of Units to the public at $10.00 per unit	$ 4,000		400,000,000	399,996,000
Underwriters' discount and offering expenses			(22,555,869)	(22,555,869)
Sale of 6,333,334 Private Placement Warrants at $1.50 per warrant			9,500,000	9,500,000
Forfeiture of Class B shares by initial shareholders		$ (6)		6
Adjustment to ordinary common stock subject to redemption	$ (3,843)		(384,278,530)	(384,274,687)
Adjustment to ordinary common stock subject to redemption (in Shares)	(38,427,853)
Net income (loss)			2,309,409		2,309,409		2,309,409
Balance at the end at Dec. 31, 2019	$ 157	$ 1,000	5,000,010	2,689,444	2,309,409		5,000,010			$ 390,000	690,443,000	(998,784,000)	(307,951,000)
Balance at the end (in shares) at Dec. 31, 2019	1,572,147	10,000,000								389,610
Balance at the beginning at Mar. 31, 2019		$ 1,006		23,994	(675)		24,325	$ 19,000			944,283,000	(885,604,000)	58,698,000
Balance at the beginning (in shares) at Mar. 31, 2019		10,062,500						191,940
Increase (Decrease) in Stockholders' Equity
Shares issued in Offering, net of issuance costs											438,000		438,000
Shares issued in Offering, net of issuance costs (in shares)								674
Net income (loss)												(28,113,000)	(28,113,000)
Balance at the end at Jun. 30, 2019								$ 19,000			948,603,000	(913,717,000)	34,905,000
Balance at the end (in shares) at Jun. 30, 2019								193,265
Balance at the beginning at Dec. 31, 2019	$ 157	$ 1,000	5,000,010	2,689,444	2,309,409		5,000,010			$ 390,000	690,443,000	(998,784,000)	(307,951,000)
Balance at the beginning (in shares) at Dec. 31, 2019	1,572,147	10,000,000								389,610
Increase (Decrease) in Stockholders' Equity
Adjustment to ordinary common stock subject to redemption	$ (5)			(479,415)			(479,420)
Adjustment to ordinary common stock subject to redemption (in Shares)	(47,942)
Net income (loss)					479,411		479,411
Balance at the end at Mar. 31, 2020	$ 152	$ 1,000		2,210,029	2,788,820		5,000,001	$ 18,000			965,495,000	(1,067,464,000)	(101,951,000)
Balance at the end (in shares) at Mar. 31, 2020	1,524,205	10,000,000						186,608
Balance at the beginning at Dec. 31, 2019	$ 157	$ 1,000	$ 5,000,010	2,689,444	2,309,409		5,000,010			$ 390,000	690,443,000	(998,784,000)	(307,951,000)
Balance at the beginning (in shares) at Dec. 31, 2019	1,572,147	10,000,000								389,610
Increase (Decrease) in Stockholders' Equity
Net income (loss)													(230,117,000)
Balance at the end at Jun. 30, 2020								$ 35,000	$ 39,000		3,395,129,000	(1,228,901,000)	2,191,288,000
Balance at the end (in shares) at Jun. 30, 2020								354,251	393,014
Balance at the beginning at Jan. 01, 2020								$ 18,000			949,186,000	(998,784,000)	(49,580,000)
Balance at the beginning (in shares) at Jan. 01, 2020								184,626
Increase (Decrease) in Stockholders' Equity
Net income (loss)												(68,680,000)	(68,680,000)
Balance at the end at Mar. 31, 2020	$ 152	$ 1,000		$ 2,210,029	$ 2,788,820		$ 5,000,001	$ 18,000			965,495,000	(1,067,464,000)	(101,951,000)
Balance at the end (in shares) at Mar. 31, 2020	1,524,205	10,000,000						186,608
Increase (Decrease) in Stockholders' Equity
Shares issued in Offering, net of issuance costs								$ 2,000			620,798,000		620,800,000
Shares issued in Offering, net of issuance costs (in shares)								16,000
Net income (loss)												(161,437,000)	(161,437,000)
Balance at the end at Jun. 30, 2020								$ 35,000	$ 39,000		$ 3,395,129,000	$ (1,228,901,000)	$ 2,191,288,000
Balance at the end (in shares) at Jun. 30, 2020								354,251	393,014

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDER'S EQUITY (Parenthetical) - Diamond eagle acquisition - $ / shares	Dec. 31, 2019	May 10, 2019	Mar. 31, 2019
Share price	$ 10.00	$ 12.00
Common Stock \| Class B common stock
Share price	$ 0.002		$ 0.002

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($)		3 Months Ended
	Mar. 31, 2019	Mar. 31, 2020
Cash Flows from Financing Activities:
Cash and cash equivalents at the beginning of period		$ 76,533,000
Diamond eagle acquisition
Cash flows from operating activities:
Net income (loss)	$ (675)	479,411
Adjustments to reconcile net income to net cash used in operating activities:
Trust income reinvested in Trust Account	0	(1,444,499)
Changes in operating assets and liabilities:
Prepaid expenses	0	225,906
Accounts payable and accrued expenses	2,408	2,240
Deferred offering costs	(1,733)
Net cash flows used in operating activities	0	(736,942)
Cash flows from investing activities:
Cash withdrawn from Trust account to pay taxes	0	403,475
Net cash flows used in investing activities	0	403,475
Cash Flows from Financing Activities:
Net increase (decrease) in cash, cash equivalents and restricted cash	0	(333,467)
Cash and cash equivalents at the beginning of period	0	491,225
Cash and cash equivalents, end of period	0	157,758
Supplemental disclosure of cash flow information:
Cash paid for taxes	0
Supplemental disclosure of non-cash financing activities:
Class A common stock subject to possible redemption	0	$ 479,420
Offering costs paid by Sponsor in exchange for Founder Shares	25,000
Deferred offering costs included in accrued expenses	$ 1,733

Organization and Business Operations	3 Months Ended	6 Months Ended	12 Months Ended
Organization and Business Operations	Mar. 31, 2020	Jun. 30, 2020	Dec. 31, 2019
Organization and Business Operations		1.Description of Business DraftKings Inc., a Nevada corporation (the “Company”, “DraftKings”, “we” or “us”), 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 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 us, whereby we 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) we changed our name to “DraftKings Inc.,” (iii) we acquired DraftKings Inc., a Delaware corporation, (“Old DK”) by way of a merger and (iv) we acquired all of the issued and outstanding share capital of SBTech (Global) Limited (“SBTech”). Upon consummation of the foregoing 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 iGaming products. The Company’s business-to-business (“B2B”) segment is involved in the design and development of sports betting and casino gaming software for 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. The U.S. jurisdictions with statutes legalizing statewide online sports betting as of June 30, 2020 are Colorado, Illinois, Indiana, Iowa, Michigan, Nevada, New Hampshire, New Jersey, Oregon, Pennsylvania, Puerto Rico, Rhode Island, Tennessee, Virginia, Washington, D.C and West Virginia. The jurisdictions with statutes legalizing sports betting at certain land-based retail locations are Arkansas, Colorado, Delaware, Illinois, Indiana, Iowa, Michigan, Mississippi, Montana, Nevada, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Puerto Rico, Rhode Island, Washington, Washington, D.C and West Virginia. The jurisdictions with statutes legalizing online casinos are Michigan, New Jersey, Pennsylvania and West Virginia. Several of the aforementioned jurisdictions have enacted laws authorizing sports wagering online or in retail locations, but such operations have not yet begun. As of June 30, 2020, the Company operates online sports betting in Colorado, Indiana, Iowa, New Hampshire, New Jersey, Oregon (B2B), Pennsylvania, and West Virginia, has retail sportsbooks in Colorado, Iowa, Mississippi, New Jersey and New York and has online casino products in New Jersey and Pennsylvania. The Company also has arrangements in place with land-based casinos to expand operations into additional states upon the passing of the appropriate laws and regulations and the receipt of appropriate licenses. Recently, the novel coronavirus (“COVID-19”) has adversely impacted global commercial activity and contributed to significant declines and volatility in financial markets. The COVID-19 pandemic is creating disruption in global supply chains and adversely impacting many industries. COVID-19 could have a continued material adverse impact on economic and market conditions and trigger a period of continued global economic slowdown. The rapid development and fluidity of this situation precludes any prediction as to the ultimate impact of COVID-19. Nevertheless, COVID-19 presents material uncertainty and risk with respect to the Company, its performance, and its financial results and could adversely affect the Company’s financial results. The direct impact of COVID-19 on the business of DraftKings beyond disruptions to normal business operations in several offices primarily results from the suspension and cancellation of sports seasons and sporting events. Typically, during the March to June time periods, DraftKings would have significant user interest and activity in its Sportsbook and DFS product offerings for Major League Baseball, European Soccer competitions, the NBA regular season and playoffs, the NCAA college basketball tournament, the Masters golf tournament, the NHL regular season and playoffs and the French Open grand slam tennis tournament. All of the aforementioned sports seasons and sporting events were suspended, although many plan to return later in 2020. The suspension of sports seasons and sporting events have reduced customers’ use of, and spending on, the Company’s Sportsbook and DFS product offerings, and has caused the Company to issue refunds for canceled events. Additionally, some retail casinos where the Company has branded sportsbooks and DFS remain closed or have reduced their capacity. The Company’s revenues vary based on sports seasons and sporting events, and the Company may not generate as much revenue as it would have without the cancellation or suspensions as a result of COVID-19. However, the strong performance of the Company’s product offerings that do not rely on sports seasons and sporting events, such as iGaming, has partially offset this adverse impact on revenue. DraftKings is also innovating to generate more content that does not rely on sports seasons and sporting events, for example, products that permit wagering and contests on events such as eSports, simulated NASCAR and League of Legends. A significant or prolonged decrease in consumer spending on entertainment or leisure activities would likely adversely affect demand for the Company’s product offerings, reducing cash flows and revenues, and thereby materially harming our business, financial condition and results of operations. Finally, the Company has business continuity programs in place to ensure that employees are safe and that the business continues to function while its employees work remotely.
Diamond eagle acquisition
Organization and Business Operations	1. Organization and Business Operations Incorporation Diamond Eagle Acquisition Corp., our predecessor, was incorporated as a Delaware corporation on March 27, 2019. Subsidiaries In connection with the business combination (the “Business Combination”) with DraftKings Inc., a Delaware corporation (“Old DK” or “DK”), and SBTech (Global) Limited, a company limited by shares, incorporated in Gibraltar and continued as a company under the Isle of Man Companies Act 2006, with registration number 014119V (“SBTech” or “SBT”), the Company formed a wholly-owned subsidiary, DEAC Merger Sub Inc., which was incorporated in Delaware on December 9, 2019 (“Merger Sub”). Merger Sub did not have any activity as of March 31, 2020. Also in connection with the Business Combination, the Company formed another wholly-owned subsidiary, DEAC NV Merger Corp. (“DEAC Nevada”), which was incorporated in Nevada on November 13, 2019. DEAC Nevada did not have any activity as of March 30, 2020. In connection with the Business Combination, DEAC Nevada changed its name to DraftKings Inc. and, by operation of Rule 12g-3(a) under the Exchange Act of 1934, as amended (the “Exchange Act”), became the successor issuer to DEAC and succeeded to the attributes of DEAC as the registrant, including DEAC’s SEC file number (001-38908) and CIK Code (0001772757). Sponsor The Company’s sponsor is Eagle Equity Partners, LLC, a Delaware limited liability company (the “Sponsor”). Fiscal Year End The Company has selected December 31 as its fiscal year end. Business Purpose The Company was formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or other similar business combination with one or more operating businesses. The Company had neither engaged in any operations nor generated significant revenue through March 31, 2020. Business Combination On December 22, 2019, the Company entered into a business combination agreement (as amended, the “Business Combination Agreement”) with Old DK, SBTech, the shareholders of SBTech (the “SBT Sellers”), Shalom Meckenzie, in his capacity as the SBT Sellers’ Representative, DEAC Nevada and Merger Sub, pursuant to which (i) the Company changed its jurisdiction of incorporation to Nevada by merging with and into DEAC Nevada, with DEAC Nevada surviving the merger (the “reincorporation”), (ii) Merger Sub merged with and into Old DK with Old DK surviving the merger (the “DK Merger”), and (iii) immediately following the DK Merger, New DraftKings (as defined below) acquired all of the issued and outstanding share capital of SBTech. The aggregate value of the consideration paid to Old DK and SBTech shareholders in the Business Combination was approximately $2.7 billion, of which (A) approximately $2.055 billion was paid to (i) the current equityholders of Old DK (the “DK Sellers”) in the form of shares of Class A common stock of New DraftKings (“New DraftKings Class A common stock”), valued at the redemption price for the Company’s public shares in the Business Combination and (ii) holders of vested in-the-money options and warrants exercisable for DK equity in the form of newly issued options and warrants of New DraftKings exercisable for New DraftKings Class A common stock, and (B) approximately €590 million was paid to the SBT Sellers and holders of vested options exercisable for equity of SBT, consisting of (i) €180 million in cash, subject to customary net debt and working capital adjustments as well as certain other specified items (the “Cash Consideration”) payable in respect of the ordinary shares of SBT and 30% of the in-the-money vested options of SBT and (ii) approximately €410 million in shares of New DraftKings Class A common stock, valued at the redemption price for the Company’s public shares in the Business Combination, and in the form of newly issued in-the-money vested options of New DraftKings exercisable for New DraftKings Class A common stock. Outstanding unvested options exercisable for DK or SBT equity (other than cashed-out options of SBT, for which the holders received a portion of the Cash Consideration for such options) converted into options exercisable for shares of New DraftKings Class A common stock. After the execution of the BCA, DK granted restricted stock units to certain of its employees, which converted into restricted stock units denominated in New DraftKings Class A common stock. The Cash Consideration came from the following sources: (1) proceeds available from the Company’s Trust Account, after giving effect to all redemptions; and (2) proceeds from private placements of shares of the Company’s Class A common stock to certain institutional investors immediately prior to the closing of the Business Combination for $304.7 million of proceeds. In addition, in connection with the Business Combination, Jason Robins received shares of Class B common stock of New DraftKings (“New DraftKings Class B common stock”) such that as of immediately following the completion of the Business Combination, Mr. Robins held approximately ninety percent (90%) of the voting power of the capital stock of New DraftKings on a fully-diluted basis. On April 23, 2020, the Company consummated the Business Combination. In connection with the closing of the Business Combination (the “Closing”), DEAC discontinued its existence as a Delaware company by merging with and into DEAC Nevada, with DEAC Nevada surviving the merger as a Nevada corporation (the “reincorporation”). In addition, upon the Closing, Old DK and SBTech became wholly-owned subsidiaries of DEAC Nevada and DEAC Nevada changed its name to DraftKings Inc. (“New DraftKings” or “DraftKings”). References to the “Company” in these notes to the unaudited condensed consolidated financial statements refer to either DEAC before the Business Combination or New DraftKings after the Business Combination, as the context suggests. PIPE Investment and Convertible Notes In connection with satisfying the Minimum Proceeds Condition (as defined in the Business Combination Agreement), the Company entered into subscription agreements (the “Subscription Agreements”), each dated as of December 22, 2019, with certain institutional investors (the “Investors”), pursuant to which, among other things, the Company agreed to issue and sell, in private placements, an aggregate of 30,471,352 shares of Class A common stock for $10.00 per share and an aggregate of 3,000,000 warrants to purchase shares of Class A common stock (the “PIPE Investment”). The warrants have terms identical to New DraftKings’ publicly traded warrants. On and after December 16, 2019, Old DK issued subordinated convertible promissory notes to certain investors in an aggregate principal amount of approximately $109.2 million (the “Convertible Notes”). Pursuant to the terms of the Convertible Notes, the outstanding principal and accrued interest on the Convertible Notes converted immediately prior to the reincorporation into shares of Class A common stock, at a price per share equal to the price per share paid by the Investors in the PIPE Investment, which resulted in the issuance of 11,254,479 shares of Class A common stock on the Closing Date. The PIPE Investment closed immediately prior to the Business Combination on the Closing Date. The shares of Class A common stock issued to the Investors and upon conversion of the Convertible Notes, were converted into shares of DraftKings’ Class A common stock upon consummation of the reincorporation and the Business Combination. The shares issued to the Investors in the PIPE Investment and to the holders of Convertible Notes on the Closing Date were issued pursuant to and in accordance with the exemption from registration under the Securities Act, under Section 4(a)(2) and/or Regulation D promulgated under the Securities Act. For more information, please see the Registration Statement on Form S-1, originally filed by DEAC NV on April 15, 2020. Financing The registration statement for the Company’s initial public offering (the “Public Offering”) (as described in Note 3) was declared effective by the United States Securities and Exchange Commission (the “SEC”) on May 10, 2019. The Company consummated the Public Offering on May 14, 2019, and, simultaneously with the closing of the Public Offering, the Sponsor and Harry E. Sloan purchased an aggregate of 6,333,334 warrants in a private placement (as described in Note 4) for a total purchase price of approximately $9,500,000. The closing of the Public Offering included a partial exercise (5,000,000 units) of the over-allotment option granted to the underwriters. Upon the closing of the Public Offering and the private placement, $400,000,000 was placed in a Trust Account with Continental Stock Transfer & Trust Company acting as trustee (the “Trust Account”). Trust Account The proceeds held in the Trust Account were invested in permitted United States “government securities” within the meaning of Section 2(a)(16) of the Investment Company Act of 1940, as amended (the “Investment Company Act”), having a maturity of 185 days or less or in money market funds meeting certain conditions under Rule 2a‑7 promulgated under the Investment Company Act that invest only in direct U.S. government treasury obligations. The Company’s amended and restated certificate of incorporation (the “Charter”) as of prior to the Business Combination provided that, other than the withdrawal of interest earned on the funds that may be released to the Company to fund working capital requirements (subject to an annual limit of $250,000) and/or to pay taxes, none of the funds held in the Trust Account will be released until the earlier of: (i) the completion of an initial business combination; (ii) the redemption of any of the shares of Class A common stock, par value $0.0001 per share (the “Class A Common Stock”) included in the Units sold in the Public Offering properly submitted in connection with a stockholder vote to amend the Charter to modify the substance or timing of the Company’s obligation to redeem 100% of the common stock included in the Units being sold in the Public Offering if the Company does not complete an initial business combination within 24 months from the closing of the Public Offering or with respect to any other material provisions relating to stockholders’ rights or pre-initial business combination activity or (iii) the redemption of 100% of the shares of Class A Common Stock included in the Units sold in the Public Offering if the Company was unable to complete an initial business combination within 24 months from the closing of the Public Offering. In connection with the Closing, the Company withdrew $404,981,569 of funds from the Trust Account to partially fund the Business Combination, pay transaction costs associated therewith and fund participant share redemptions. Emerging Growth Company Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act of 1933, as amended (the “Securities Act”) registration statement declared effective or do not have a class of securities registered under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such an election to opt out is irrevocable. We have elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies, we, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s financial statements with another public company which is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accountant standards used.		NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 1. Organization and Business Operations Incorporation Diamond Eagle Acquisition Corp. (the “Company”) was incorporated as a Delaware corporation on March 27, 2019. Subsidiaries In connection with the proposed business combination (the "Business Combination") with DraftKings Inc. ("DK") and SBTech (Global) Limited ("SBT"), the Company formed a wholly-owned subsidiary, DEAC Merger Sub Inc., which was incorporated in Delaware on December 9, 2019 ("Merger Sub"). Merger Sub did not have any activity as of December 31, 2019. Also in connection with an initial business combination, the Company formed another wholly-owned subsidiary, DEAC NV Merger Corp. ("DEAC Nevada"), which was incorporated in Nevada on November 13, 2019. DEAC Nevada did not have any activity as of December 31, 2019. Sponsor The Company’s sponsor is Eagle Equity Partners, LLC, a Delaware limited liability company (the “Sponsor”). Fiscal Year End The Company has selected December 31 as its fiscal year end. Business Purpose The Company was formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or other similar business combination with one or more operating businesses that it has not yet selected. Financing The registration statement for the Company's initial public offering (the "Public Offering") (as described in Note 3) was declared effective by the United States Securities and Exchange Commission (the "SEC") on May 10, 2019. The Company consummated the Public Offering on May 14, 2019, and, simultaneously with the closing of the Public Offering, the Sponsor and Harry E. Sloan purchased an aggregate of 6,333,334 warrants in a private placement (as described in Note 4) for a total purchase price of approximately $9,500,000. The closing of the Public Offering included a partial exercise (5,000,000 units) of the over-allotment option granted to the underwriters. Upon the closing of the Public Offering and the private placement, $400,000,000 was placed in a Trust Account with Continental Stock Transfer & Trust Company acting as trustee (the "Trust Account"). Trust Account The Trust Account can be invested in permitted United States “government securities” within the meaning of Section 2(a) (16) of the Investment Company Act of 1940, as amended (the “Investment Company Act”), having a maturity of 185 days or less or in money market funds meeting certain conditions under Rule 2a‑7 promulgated under the Investment Company Act that invest only in direct U.S. government treasury obligations. The Company’s amended and restated certificate of incorporation (the “Charter”) provides that, other than the withdrawal of interest to pay income taxes, and the withdrawal of interest to fund the Company's working capital requirements (subject to an annual limit of $250,000) and/or to pay taxes, if any, none of the funds held in Trust will be released until the earlier of: (i) the completion of an initial business combination; (ii) the redemption of any of the shares of Class A common stock included in the units sold in the Public Offering (the “Units”) properly tendered in connection with a stockholder vote to amend the Company’s Charter to modify the substance or timing of the Company’s obligation to redeem 100% of the shares of Class A common stock included in the Units if the Company does not complete an initial business combination within 24 months from the closing of the Public Offering (May 14, 2021) or (iii) the redemption of 100% of the shares of Class A common stock included in the Units if the Company is unable to complete an initial business combination by May 14, 2021. Cash and Cash Equivalents The Company considers all short-term investments with an original maturity of three months or less when purchased to be cash equivalents. Business Combination An initial business combination is subject to the following size, focus and stockholder approval provisions: Size/Control - An initial business combination must occur with one or more target businesses that together have an aggregate fair market value of at least 80% of the assets held in the Trust Account (excluding the deferred underwriting commissions and taxes payable on the income earned on the Trust Account) at the time of the agreement to enter into an initial business combination. The Company will not complete an initial business combination unless it acquires a controlling interest in a target company or is otherwise not required to register as an investment company under the Investment Company Act. Tender Offer/Stockholder Approval -The Company, after signing a definitive agreement for an initial business combination, will either (i) seek stockholder approval of an initial business combination at a meeting called for such purpose in connection with which stockholders may seek to redeem their shares of Class A common stock, regardless of whether they vote for or against an initial business combination, for cash equal to their pro rata share of the aggregate amount then on deposit in the Trust Account calculated as of two business days prior to the consummation of an initial business combination, including interest but less income taxes payable, or (ii) provide stockholders with the opportunity to sell their shares of Class A common stock to the Company by means of a tender offer (and thereby avoid the need for a stockholder vote) for an amount in cash equal to their pro rata share of the aggregate amount then on deposit in the Trust Account calculated as of two business days prior to commencement of the tender offer, including interest but less income taxes payable. The decision as to whether the Company will seek stockholder approval of an initial business combination or will allow stockholders to sell their shares of Class A common stock in a tender offer will be made by the Company, solely in its discretion, and will be based on a variety of factors such as the timing of the transaction and whether the terms of the transaction would otherwise require the Company to seek stockholder approval. If the Company seeks stockholder approval, it will complete its initial business combination only if a majority of the outstanding shares of common stock voted are voted in favor of an initial business combination. However, in no event will the Company redeem its public shares in an amount that would cause its net tangible assets to be less than $5,000,001. In such case, the Company would not proceed with the redemption of its public shares and the related Business Combination, and instead may search for an alternate business combination. If the Company holds a stockholder vote in connection with an initial business combination, a public stockholder will have the right to redeem its shares of Class A common stock for an amount in cash equal to its pro rata share of the aggregate amount then on deposit in the Trust Account calculated as of two business days prior to the consummation of the initial business combination, including interest but less income taxes payable. As a result, such shares of Class A common stock have been recorded at redemption amount and classified as temporary equity, in accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 480, “Distinguishing Liabilities from Equity.” Going Concern and Liquidity The Company has until May 14, 2021 to complete its initial business combination. If the Company does not complete an initial business combination within this period of time, it shall (i) cease all operations except for the purpose of winding up, (ii) as promptly as reasonably possible but not more than ten business days thereafter, redeem the public shares, at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account, including interest earned on the funds held in the Trust Account and not previously released to us to fund our working capital requirements (subject to an annual limit of $250,000) (less taxes payable and up to $100,000 of interest to pay dissolution expenses), divided by the number of then outstanding public shares, which redemption will completely extinguish public stockholders' rights as stockholders (including the right to receive further liquidation distributions, if any), and (iii) as promptly as reasonably possible following such redemption, subject to the approval of our remaining stockholders and our board of directors, liquidate and dissolve, subject in the case of clauses (ii) and (iii) to our obligations under Delaware law to provide for claims of creditors and in all cases subject to the other requirements of applicable law. The Sponsor, Harry E. Sloan and the Company’s executive officers and directors (the “initial stockholders”) have entered into letter agreements with the Company, pursuant to which they have waived their rights to participate in any redemption with respect to their Founder Shares (as defined below); however, if the initial stockholders or any of the Company’s officers, directors or affiliates acquire shares of Class A common stock in or after the Public Offering, they will be entitled to a pro rata share of the Trust Account upon the Company’s redemption or liquidation in the event the Company does not complete an initial business combination within the required time period. In the event of such distribution, it is possible that the per share value of the residual assets remaining available for distribution (including Trust Account assets) will be less than the initial public offering price per Unit in the Public Offering. As of December 31, 2019, the Company had $491,225 in cash and a working capital deficit of $682,669. In connection with the Company’s assessment of going concern considerations in accordance with ASU 2014-15, “Disclosures of Uncertainties about an Entity’s Ability to Continue as a Going Concern” as of December 31, 2019, the Company does not have sufficient liquidity to meet its current obligations. However, management has determined that the Company has access to funds from the Sponsor entity, in the form of Working Capital Loans, that are sufficient to fund the working capital needs of the Company until the earlier of the consummation of an initial business combination or a minimum one year from the date of issuance of these consolidated financial statements.

Significant Accounting Policies

3 Months Ended

6 Months Ended

12 Months Ended

Mar. 31, 2020

Jun. 30, 2020

Dec. 31, 2019

2.Summary of Significant Accounting Policies and Practices

Basis of Presentation and Principles of Consolidation

The accompanying unaudited condensed consolidated financial statements include the accounts and operations of the Company. All intercompany accounts and transactions have been eliminated.

Comprehensive Income (Loss)

Foreign Currency

Use of Estimates

Going Concern

Emerging Growth Company

Concentrations of Credit Risk

Acquisitions

Cash and cash equivalents

Cash Reserved for Users

Receivables Reserved for Users

Accounts Receivables

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

The Company’s intangible assets consist of Developed Technology, Customer Relationships, Internally-Developed Software, Gaming Licenses and Trademarks and Tradenames.

Developed Technology

Customer Relationships

Internally Developed Software

Gaming Licenses

Trademarks and Tradenames

Goodwill

Impairment of Long-Lived Assets

Equity Method Investment

Leases

Liabilities to Users

Revenue Recognition

The Company determines revenue recognition through the following steps:

· Identifying the contract, or contracts, with the customer;

· Identifying the performance obligations in the contract;

· Determining the transaction price;

· Allocating the transaction price to performance obligations in the contract; and

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

Online Gaming

Gaming software

Transaction Price Considerations

Variable Consideration

Allocation of transaction price to performance obligations

Certain costs to obtain or fulfill contracts

Contract balances

Cost of Revenue

Sales and Marketing

Product and Technology

General and Administrative

Stock-based Compensation

Income Taxes

Fair Value Measurements

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

Earnings (loss) per share

Recently Adopted Accounting Pronouncements

Recent Accounting Pronouncements Not Yet Adopted

2. Summary of Significant Accounting Policies and Practices

Basis of Presentation and Principles of Consolidation

Going Concern

Emerging Growth Company

Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies, but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period, which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s consolidated financial statements with another public company which is neither an emerging growth company nor an emerging growth company, which has opted out of using the extended transition period, difficult or impossible because of the potential differences in accounting standards used.

Use of Estimates

Acquisitions

The Company accounts for business combinations under the acquisition method of accounting, in accordance with Accounting Standards Codification (“ASC”) Topic 805, Business Combinations, which requires assets acquired and liabilities assumed to be recognized at their fair values on the acquisition date. Any excess of the fair value of purchase consideration over 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 involves management making significant estimates and assumptions.

Cash

Cash includes highly liquid checking and instant access internet banking accounts which are owned by the Company.

Cash Reserved for Users

Receivables Reserved for Users

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

User Relationships

Internally Developed Software

State Licenses

Goodwill

Impairment of Long-Lived Assets

Equity Method Investment

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, dividends received, capital contributions and distributions and impairment losses. The Company performs a qualitative assessment quarterly and recognizes an impairment if there are sufficient indicators that the fair value of the investment is less than carrying value.

Deposits

Liabilities to Users

Concentrations of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of operating cash and cash reserved for users. The Company maintains cash and cash reserves for users primarily across five financial institutions; however, the vast majority is held with one financial institution within separate bank accounts, which management believes to be of a high credit quality, in amounts that exceed federally insured limits. The Company does not believe that it is subject to unusual credit risk beyond the normal credit risk associated with commercial banking relationships.

Leases

The Company accounts for leases under the provisions of ASC Topic 840, Leases, which requires that leases be evaluated and classified as operating or capital leases for financial reporting purposes. The terms used for the evaluation include renewal option periods in instances in which the exercise of the renewal option can be reasonably assured and failure to exercise such option would result in an economic penalty. Leases are classified as capital leases whenever the terms of the lease transfer substantially all of the risks and rewards of ownership to the lessee. All other leases are recorded as operating leases. As of December 31, 2019 and 2018, all of the Company’s leases were operating leases.

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 other long-term liabilities in the consolidated balance sheets.

Revenue Recognition

The Company determines revenue recognition through the following steps:

Identifying the contract, or contracts, with the customer;

Identifying the performance obligations in the contract;

Determining the transaction price;

Allocating the transaction price to performance obligations in the contract; and

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

Transaction Price Considerations

Certain costs to obtain or fulfill contracts

Contract balances

Refer to Note 15 for further information, including changes in deferred revenue during the period.

Cost of Revenue

Sales and Marketing

Product and Technology

General and Administrative

Advertising and Promotion Costs

Stock-based Compensation

The Company measures compensation expense for stock options and other stock awards in accordance with ASC Topic 718, Compensation — Stock Compensation. Stock-based compensation is measured at fair value on the grant date and recognized as compensation expense over the requisite service period. Generally, the Company issues stock options to employees with service-based, market based, 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. For awards with performance-based vesting conditions, the Company recognizes compensation cost on a tranche- by tranche basis (the accelerated attribution method).

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 the financial statements and tax bases 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 provision. 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.

Fair Value Measurements

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

Earnings (loss) per share

Recently Adopted Accounting Pronouncements

Recent Accounting Pronouncements Not Yet Adopted

2. Significant Accounting Policies

Basis of Presentation

These unaudited condensed consolidated financial statements of the Company are presented in U.S. dollars in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and pursuant to the rules and regulations of the SEC. The interim financial information provided is unaudited, but includes all adjustments which management considers necessary for the fair presentation of the results for these periods. Operating results for interim periods are not necessarily indicative of the results that may be expected for the full year period and should be read in conjunction with the Company’s audited financial statements and notes thereto included in the Company’s Form 10-K filed with the SEC on March 12, 2020.

Net Income (Loss) Per Share

Net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of common shares outstanding for the period. Diluted net income per share reflects the potential dilution that could occur if warrants were to be exercised or converted or otherwise resulted in the issuance of Common Stock that then shared in the earnings of the entity.

For the three months ended March 31, 2020, the Company had potentially dilutive securities in the form of 19,666,667 warrants, including 13,333,333 warrants issued as part of the Public Units and 6,333,334 Private Placement Warrants issued in the Private Placement. Of the total warrants outstanding for the period then ended, approximately 2,615,800 and 1,242,505 represent incremental shares of common stock, based on their assumed exercise, to be included in the weighted average number of shares of Class A common stock outstanding under the treasury stock method for the calculation of diluted income per share of Class A common stock. The Company uses the “treasury stock method” to calculate potential dilutive shares, as if they were redeemed for common stock at the beginning of the period.

The Company’s unaudited condensed consolidated statement of operations includes a presentation of net income per share for common shares subject to redemption in a manner similar to the two-class method of net income (loss) per share. Net income (loss) per common share for basic and diluted Class A common stock is calculated by dividing the interest income earned on the Trust Account, net of applicable franchise taxes of $50,000, working capital up to $250,000 annually, and income taxes of $246,289, by the weighted average number of Class A common stock for the period. Net loss per common share for basic and diluted for Class B common stock is calculated by dividing the net income, which excludes income attributable to Class A common stock, by the weighted average number of Class B common stock outstanding for the period.

Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentration of credit risk consist of cash accounts in a financial institution which, at times, may exceed the Federal depository insurance coverage of $250,000. The Company has not experienced losses on these accounts and management believes the Company is not exposed to significant risks on such accounts.

Fair Value of Financial Instruments

The fair value of the Company’s assets and liabilities, which qualify as financial instruments under FASB ASC 820, “Fair Value Measurements and Disclosures,” approximates the carrying amounts represented in the balance sheet with the exception of investments in the Trust Account which are carried at amortized cost.

Use of Estimates

The preparation of financial statements in conformity with 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 revenue and expenses during the reporting period. Actual results could differ from those estimates.

Offering Costs

The Company complies with the requirements of the ASC 340‑10‑S99‑1. Offering costs of $22,555,870 consisting principally of underwriters’ discounts of $22,000,000 (including $14,000,000 of which payment is deferred) and $555,870 of professional, printing, filing, regulatory and other costs were charged to additional paid-in capital upon completion of the Public Offering.

Income Taxes

The Company complies with the accounting and reporting requirements of Financial Accounting Standards Board Accounting Standard Codification, or FASB ASC, 740, “Income Taxes,” which requires an asset and liability approach to financial accounting and reporting for income taxes. Deferred income tax assets and liabilities are computed for differences between the financial statement and tax bases of assets and liabilities that will result in future taxable or deductible amounts, based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.

There were no unrecognized tax benefits as of March 31, 2020 and December 31, 2019. FASB ASC 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. No amounts were accrued for the payment of interest and penalties at March 31, 2020 and December 31, 2019. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation from its position. The Company is subject to income tax examinations by major taxing authorities since inception.

As of March 31, 2020 and December 31, 2019, the Company’s taxable income primarily consisted of interest income on the Trust Account. The Company’s general and administrative costs are generally considered start-up and business combination costs and are not currently deductible. During the three months ended March 31, 2020, and the period from March 27, 2019 (inception) to March 31, 2019, the Company recorded income tax expense of $246,289 and nil, respectively.

Recent Accounting Pronouncements

Management does not believe that any recently issued, but not yet effective, accounting pronouncements, if currently adopted, would have a material effect on the Company’s unaudited condensed consolidated financial statements.

2. Significant Accounting Policies

Basis of Presentation

The accompanying consolidated financial statements of the Company are presented in U.S. dollars in conformity with accounting principles generally accepted in the United States of America and pursuant to the rules and regulations of the SEC.

Net Income (Loss) Per Share

Net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of common shares outstanding for the period. The Company has not considered the effect of the warrants sold in the Public Offering (including the over-allotment) and private placement warrants to purchase approximately 13,333,333 and 6,333,334 shares of the Company's Class A common stock, respectively, in the calculation of diluted income per share, since their inclusion would be anti-dilutive.

The Company’s consolidated statement of operations includes a presentation of net income per share for common shares subject to redemption in a manner similar to the two-class method of net income (loss) per share. Net income (loss) per common share for basic and diluted Class A common stock is calculated by dividing the interest income earned on the Trust Account of $5,111,208, net of applicable franchise taxes of $153,971, working capital up to $250,000 annually, and income taxes of $944,494, by the weighted average number of Class A common stock since issuance. Net loss per common share for basic and diluted for Class B common stock is calculated by dividing the net loss of $1,453,333, which excludes income attributable to Class A common stock, by the weighted average number of Class B common stock outstanding for the period.

Emerging Growth Company

Section 102(b)(1) of the Jumpstart Our Business Startups Act of 2012 (the "JOBS Act") exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a registration statement under the Securities Act of 1933, as amended (the "Securities Act"), declared effective or do not have a class of securities registered under the Securities Exchange Act of 1934, as amended (the "Exchange Act") are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such an election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s consolidated financial statements with another public company which is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used.

Concentration of Credit Risk

Fair Value of Financial Instruments

The fair value of the Company’s assets and liabilities, which qualify as financial instruments under FASB ASC 820, “Fair Value Measurements and Disclosures,” approximates the carrying amounts represented in the consolidated balance sheet with the exception of investments in Trust, as they are carried at amortized cost.

Use of Estimates

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America 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 consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

Offering Costs

The Company complies with the requirements of the ASC 340‑10‑S99‑1. Offering costs of $22,555,869 consisting principally of underwriters' discounts of $22,000,000 (including $14,000,000 of which payment is deferred) and $555,869 of professional, printing, filing, regulatory and other costs were charged to additional paid-in capital upon completion of the Public Offering. Approximately $224,395 of such offering expenses were accrued but unpaid at December 31, 2019.

Redeemable Shares

As discussed in Note 1, all of the 40,000,000 shares of Class A common stock sold as parts of the Units in the Public Offering contain a redemption feature which allows for the redemption of shares of Class A common stock under the Company's Charter. In accordance with FASB ASC 480, redemption provisions not solely within the control of the Company require the security to be classified outside of permanent equity. Ordinary liquidation events, which involve the redemption and liquidation of all of the entity's equity instruments, are excluded from the provisions of FASB ASC 480. Although the Company has not specified a maximum redemption threshold, its Charter provides that in no event will the Company redeem its public shares in an amount that would cause its net tangible assets to be less than $5,000,001.

The Company recognizes changes in redemption value immediately as they occur and will adjust the carrying value of the security at the end of each reporting period. Increases or decreases in the carrying amount of redeemable shares of Class A common stock shall be affected by charges against additional paid in capital.

Accordingly, at December 31, 2019, 38,427,853 shares of the 40,000,000 shares of Class A common stock included in the Units were classified outside of permanent equity.

Income Taxes

There were no unrecognized tax benefits as of December 31, 2019. FASB ASC 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. No amounts were accrued for the payment of interest and penalties at December 31, 2019. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation from its position. The Company is subject to income tax examinations by major taxing authorities since inception. The Company's currently taxable income primarily consists of interest income on the Trust Account. The Company's general and administrative costs are generally considered start-up costs and are not currently deductible. During the period from March 27, 2019 (inception) to December 31, 2019, the Company recorded an income tax expense of $944,494.

Recent Accounting Pronouncements

Management does not believe that any recently issued, but not yet effective, accounting pronouncements, if currently adopted, would have a material effect on the Company’s consolidated financial statements.

Public Offering	3 Months Ended	12 Months Ended
Public Offering	Mar. 31, 2020	Dec. 31, 2019
Diamond eagle acquisition
Public Offering	3. Public Offering Public Units In the Public Offering, which closed May 14, 2019, the Company sold 40,000,000 Units at a price of $10.00 per Unit. Each Unit consists of one share of Class A Common Stock and one-third of one redeemable warrant (each whole warrant, a “Warrant”). Each whole Warrant entitles the holder to purchase one share of Class A Common Stock at a price of $11.50 per share. Each Warrant will become exercisable on the later of 30 days after the completion of our initial business combination and 12 months from the closing of the Public Offering. The exercise price and number of shares of Class A Common Stock issuable upon exercise of the Warrants may be adjusted in certain circumstances including in the event of a stock dividend, or recapitalization, reorganization, merger or consolidation. The Company granted the underwriters a 45‑day option to purchase up to 5,250,000 additional Units to cover any over-allotment, at the Public Offering price less the underwriting discounts and commissions. The Company issued 5,000,000 Units in connection with the underwriters’ partial exercise of the over-allotment option. Underwriting Commissions The Company paid an underwriting discount of $8,000,000 ($0.20 per Unit sold) to the underwriters at the closing of the Public Offering on May 14, 2019, with an additional fee (“Deferred Discount”) of $14,000,000 ($0.35 per Unit sold) payable upon the Company’s completion of an initial business combination. The Deferred Discount becomes payable to the underwriters from the amounts held in the Trust Account solely in connection with the closing of its initial business combination. Subsequent to March 31, 2020, in connection with the consummation of the Business Combination, the Company paid the Deferred Discount in full.	3. Public Offering On May 14, 2019, the Company sold 40,000,000 Units at a price of $10.00 per unit in the Public Offering.Each Unit consists of one share of Class A common stock of the Company, $0.0001 par value per share (the "Public Shares"), and one-third of one warrant to purchase one share of Class A common stock (the “Public Warrants”). The closing of the Public Offering included a partial exercise (5,000,000 Units) of the overallotment option granted to the underwriters. Each whole Public Warrant entitles the holder to purchase one share of Class A common stock at a price of $11.50 per share. No fractional shares will be issued upon exercise of the Public Warrants. If, upon exercise of the Public Warrants, a holder would be entitled to receive a fractional interest in a share, the Company will, upon exercise, round down to the nearest whole number the number of shares of Class A common stock to be issued to the Public Warrant holder. Each Public Warrant will become exercisable on the later of 30 days after the completion of an initial business combination and 12 months from the closing of the Public Offering. However, if the Company does not complete an initial business combination on or prior to the 24‑month period allotted to complete an initial business combination, the Public Warrants will expire at the end of such period. Under the terms of a warrant agreement between the Company and Continental Stock Transfer & Trust Company, as warrant agent, the Company has agreed to, following the completion of an initial business combination, use its best efforts to file a new registration statement under the Securities Act for the registration of the shares of Class A common stock issuable upon exercise of the Public Warrants. If the Company is unable to deliver registered shares of Class A common stock to the holder upon exercise of Public Warrants issued in connection with the 40,000,000 Units during the exercise period, there will be no net cash settlement of these Public Warrants and the Public Warrants will expire worthless, unless they may be exercised on a cashless basis in the circumstances described in the warrant agreement. The Company granted the underwriters a 45‑day option to purchase up to 5,250,000 additional Units to cover any over-allotments at the Public Offering price less the underwriting discounts and commissions. The Units that were issued in connection with the over-allotment option are identical to the Units issued in the Public Offering. Prior to the Public Offering, the underwriters’ elected to exercise a portion of the over-allotment option for 5,000,000 additional Units for additional gross proceeds of $50 million. The partial exercise resulted in a reduction of 62,500 shares of Class B common stock subject to forfeiture and are considered as forfeited in the accompanying consolidated balance sheet. The Company paid an upfront underwriting discount of $8,000,000 ($0.20 per Unit sold) in the aggregate to the underwriters at the closing of the Public Offering, with an additional fee (the “Deferred Discount”) equal to $14,000,000 ($0.35 per Unit sold) to become payable to the underwriters from the amounts held in the Trust Account solely in the event the Company completes an initial business combination. The underwriters are not entitled to any interest accrued on the Deferred Discount.

Related Party Transactions	3 Months Ended	6 Months Ended	12 Months Ended
Related Party Transactions	Mar. 31, 2020	Jun. 30, 2020	Dec. 31, 2019
Related Party Transactions		14.Related-Party Transactions Media Purchase Agreement (“MPA”) In July 2015, Old DK entered into an MPA with a related party purchaser 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 $15,000 per year, plus an additional contingent commitment of $5,000 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 $15,000 in aggregate through December 31, 2021 ($5,000 per year) and the contingent commitment was removed. If the Company satisfies the $15,000 commitment prior to December 31, 2021, the MPA will expire unless the Company elects to extend the MPA through the next NFL season with no required minimum. The Company recorded expense of $1,241 and $3,400 related to the MPA for the three and six months ended June 30, 2020 and recorded expense of $88 and $2,216 related to the MPA for the three and six months ended June 30, 2019, respectively, in sales and marketing expenses in the condensed consolidated statements of operations. As of June 30, 2020 and December 31, 2019, $1,563 and $2,413, respectively, of MPA is included in accounts payable and accrued expenses in the condensed consolidated balance sheets. Private Placement Agent Old DK entered into an engagement letter with a related party (the “Private Placement Agent”) in August 2019, as amended in December 2019. Pursuant to the engagement letter, the Private Placement Agent has acted as the exclusive financial advisor to Old DK, and Old DK agreed to pay certain acquisition and financing fees in connection with the Business Combination with SBTech and DEAC. As of the six months ended June 30, 2020 and June 30, 2019 Old DK incurred $12,349 and $0, respectively, of fees with the Private Placement Agent. During the three months ended June 30, 2020 and June 30, 2019, Old DK incurred $11,748 and $0, respectively. Receivables from Equity Method Investment The Company provides office space and general operational support to DKFS, LLC, an equity-method investment. The operational support is primarily general and administrative support services. As of June 30, 2020, and December 31, 2019, the Company had $1,080 and $959, respectively, of receivables from the entity related to these services, which are included within current assets in the condensed consolidated balance sheets. Transactions with a Shareholder and his Immediate Family Members The Business Combination Agreement requires payment to a shareholder in the event certain SBTech accounts receivable are collected. As of June 30, 2020, the Company had a $1,593 payable to the shareholder. In addition, the Company had sales to an entity related to an immediate family member of the shareholder during the three and six months ended June 30, 2020 and had an associated accounts receivable balance of $579 as of June 30, 2020. There were no related party transactions with the shareholder or their immediate family members for the three or six months ended June 30, 2019 and no related accounts receivable balance as of December 31, 2019.	12. Related-Party Transactions Media Purchase Agreement (“MPA”) In July 2015, the Company entered into a MPA with a related party purchaser 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 $15,000 per year plus an additional contingent commitment of $5,000 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 $15,000 in aggregate through December 31, 2021 ($5,000 per year) and the contingent commitment was removed. If the Company satisfies the $15,000 commitment prior to December 31, 2021, the MPA will expire unless the Company elects to extend the MPA through the next NFL season with no required minimum. The Company recorded expense of $8,411 and $23,313 related to the MPA for the years ended December 31, 2019 and 2018, respectively, in sales and marketing expenses in the consolidated statements of operations. As of December 31, 2019, and 2018, $2,413 and $428, respectively, of MPA contractual obligations were unpaid and included in accounts payable and accrued expenses in the consolidated balance sheets. Future minimum obligations under the MPA are included in the other contractual obligations table in Note 13. Private Placement Agent In March 2015, the Company entered into an engagement letter with a related party (the “Private Placement Agent”), pursuant to which the related party served as a private placement agent for DraftKings in connection with DraftKings’ Series E and Series E‑1 preferred stock financings. The engagement letter terminated in June 2018. Of the Company’s Series E‑1 redeemable convertible preferred stock issued and outstanding, $119,752 and $119,427 as of December 31, 2019 and 2018, respectively, is held by the related party. Redeemable convertible preferred stock is discussed in Note 8. In connection with the Company’s Series E‑1 redeemable convertible preferred stock issuance, $2,066 of fees were incurred during the year ended December 31, 2017 and $0 in fees were incurred during the years ended December 31, 2019 and 2018. The 2017 fees are accreted ratably over the expected life of Series E‑1. These fees are presented in the Series E‑1 redeemable convertible preferred stock in the consolidated balance sheets. The Company also entered into an engagement letter in August 2019, and amended in December 2019, with the Private Placement Agent. Pursuant to the engagement letter, the Private Placement Agent has acted as the exclusive financial advisor to DraftKings, and the Company has agreed to pay certain acquisition and financing fees in connection with potential transactions. Refer to Note 7 for a description of the financing fee incurred in 2019. Receivables from Equity Method Investment The Company provides office space and general overhead support to DKFS, LLC, an equity-method affiliate. The overhead support relates to rent, utilities and general and administrative support services. As of December 31, 2019, the Company had $959 of receivables from the entity related to these services and is included within current assets.
Diamond eagle acquisition
Related Party Transactions	4. Related Party Transactions Founder Shares On March 28, 2019, the Sponsor received 10,062,500 shares of Class B common stock (the “Founder Shares”) in exchange for a capital contribution of $25,000, or approximately $0.002 per share. The Founder Shares are identical to the shares of Class A Common Stock included in the Units sold in the Public Offering except that the Founder Shares are subject to certain transfer restrictions, as described in more detail below. On April 10, 2019, the Sponsor transferred 4,930,625 Founder Shares to Harry E. Sloan (together with the Sponsor, the “initial stockholders”) for a purchase price of $12,250 (the same per-share price initially paid by the Sponsor), resulting in the Sponsor holding 5,131,875 Founder Shares. On May 10, 2019, the Sponsor and Mr. Sloan each forfeited at no cost 31,875 and 30,625 Founder Shares, respectively, to the Company in connection with the election by the underwriters of the Public Offering to exercise their over-allotment option in part and not in full, resulting in an aggregate of 10,000,000 Founder Shares outstanding. On December 31, 2019, the Sponsor transferred an aggregate of 80,000 Founder Shares to each of the Company's independent directors. The initial stockholders and the Company's independent directors agreed not to transfer, assign or sell any of their Founder Shares until the earlier of (A) one year after the completion of the Company’s initial business combination, or earlier if, subsequent to the Company’s initial business combination, the closing price of the Company’s common stock equals or exceeds $12.00 per share (as adjusted for stock splits, stock capitalizations, reorganizations, recapitalizations and the like) for any 20 trading days within any 30‑trading day period commencing at least 150 days after the Company’s initial business combination, and (B) the date on which the Company completes a liquidation, merger, capital stock exchange or other similar transaction after the initial business combination that results in all of the Company’s stockholders having the right to exchange their common stock for cash, securities or other property. Private Placement Warrants In conjunction with the Public Offering, the Sponsor and Harry E. Sloan purchased an aggregate of 6,333,334 Private Placement Warrants, at a price of $1.50 per warrant (approximately $9,500,000 in the aggregate) in the IPO Private Placement. Each Private Placement Warrant entitles the holder to purchase one share of Class A Common Stock at $11.50 per share. A portion of the purchase price of the Private Placement Warrants was added to the proceeds from the Public Offering to be held in the Trust Account such that at closing of the Public Offering, $400,000,000 was placed in the Trust Account. On December 31, 2019, the Sponsor transferred an aggregate of 333,332 Private Placement Warrants to certain of the Company's independent directors. The Private Placement Warrants (including the shares of common stock issuable upon exercise of the Private Placement Warrants) are not transferable, assignable or salable until 30 days after the completion of the Business Combination and they are non-redeemable for cash so long as they are held by the initial purchasers of the Private Placement Warrants or their permitted transferees. If the Private Placement Warrants are held by someone other than the initial purchasers of the Private Placement Warrants or their permitted transferees, the Private Placement Warrants will be redeemable for cash by the Company and exercisable by such holders on the same basis as the warrants included in the Units sold in the Public Offering. Otherwise, the Private Placement Warrants have terms and provisions that are identical to those of the Warrants sold as part of the Units in the Public Offering and have no net cash settlement provisions. Registration Rights The holders of the Founder Shares, Private Placement Warrants and Warrants that may be issued upon conversion of working capital loans (and any Class A common stock issuable upon the exercise of the Private Placement Warrants and warrants that may be issued upon conversion of working capital loans and upon conversion of the Founder Shares) are entitled to registration rights pursuant to a registration rights agreement, requiring the Company to register such securities for resale. The holders of these securities are entitled to make up to three demands, excluding short form demands, that we register such securities. In addition, the holders have certain “piggy-back” registration rights with respect to registration statements filed subsequent to our completion of our initial business combination. The Company will bear the expenses incurred in connection with the filing of any such registration statements. In connection with the Business Combination, the holders of these securities entered into the Stockholders Agreement (as defined below). See Note 8. Sponsor Loans The Sponsor agreed to loan the Company up to an aggregate of $300,000 by the issuance of an unsecured promissory note (the “Note”) to cover expenses related to the Public Offering. The Note was payable without interest on the earlier of December 31, 2019 or the completion of the Public Offering. Upon completion of the Public Offering, $60,875 under the Note was repaid in full. As of March 31, 2020 and December 31, 2019, there was no outstanding balance under the Note. Administrative Services Agreement The Company entered into an administrative services agreement in which the Company reimbursed an affiliate of the Sponsor for office space, utilities and secretarial and administrative services provided to members of the Company’s management team in an amount not to exceed $15,000 per month. For the three months ended March 31, 2020 and the period from March 27, 2019 (inception) to March 31, 2019, the Company incurred $45,000 and nil, respectively, of administrative services expenses under the arrangement. The Company ceased paying these monthly fees upon the Closing. Working Capital Loans In order to finance transaction costs in connection with an intended initial business combination, the Sponsor or an affiliate of the Sponsor or certain of the Company’s officers and directors may, but are not obligated to, loan the Company funds as may be required. Up to $1,500,000 of such loans may be convertible into warrants of the post-Business Combination entity at a price of $1.50 per warrant at the option of the lender. Such warrants would be identical to the private placement warrants. The terms of such loans have not been determined and no written agreements exist with respect to such loans. No amounts were borrowed under this arrangement as of March 31, 2020 and December 31, 2019. Risks and Uncertainties Management is currently evaluating the impact of the COVID-19 pandemic on the industry and has concluded that while it is reasonably possible that the virus could have a negative effect on the Company's financial position and results of its operations, the specific impact is not readily determinable as of the date of these unaudited condensed consolidated financial statements. The unaudited condensed consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.		4. Related Party Transactions Founder Shares On March 28, 2019, the Sponsor received 10,062,500 shares of Class B common stock (the “Founder Shares”) in exchange for a capital contribution of $25,000, or approximately $0.002 per share. The Founder Shares are identical to the shares of Class A common stock included in the Units sold in the Public Offering except that the Founder Shares are subject to certain transfer restrictions, as described in more detail below. On April 10, 2019, the Sponsor transferred 4,930,625 Founder Shares to Harry E. Sloan (together with the Sponsor, the “initial stockholders”) for a purchase price of $12,250 (the same per-share price initially paid by the Sponsor), resulting in the Sponsor holding 5,131,875 Founder Shares. On May 10, 2019, the Sponsor and Mr. Sloan each forfeited at no cost 31,875 and 30,625 Founder Shares, respectively, to the Company in connection with the election by the underwriters of the Public Offering to exercise their over-allotment option in part and not in full, resulting in an aggregate of 10,000,000 Founder Shares outstanding. On December 31, 2019, the Sponsor transferred 20,000 Founder Shares to each of the Company’s independent directors, resulting in the Sponsor holding 5,020,000 Founder Shares, for the same per-share purchase price initially paid by the Sponsor. The initial stockholders and the Company’s independent directors have agreed not to transfer, assign or sell any of their Founder Shares until the earlier of (A) one year after the completion of the Company’s initial Business Combination, or earlier if, subsequent to the Company’s initial Business Combination, the closing price of the Company’s common stock equals or exceeds $12.00 per share (as adjusted for stock splits, stock capitalizations, reorganizations, recapitalizations and the like) for any 20 trading days within any 30‑trading day period commencing at least 150 days after the Company’s initial Business Combination, and (B) the date on which the Company completes a liquidation, merger, capital stock exchange or other similar transaction after the initial Business Combination that results in all of the Company’s stockholders having the right to exchange their common stock for cash, securities or other property. Rights—The Founder Shares are identical to the Public Shares except that (i) the Founder Shares are subject to certain transfer restrictions, as described above, and (ii) the initial stockholders have agreed to waive their redemption rights in connection with an initial business combination with respect to the Founder Shares and any Public Shares they may purchase, and to waive their redemption rights with respect to the Founder Shares if the Company fails to complete an initial business combination within 24 months from the closing of the Public Offering. Voting—If the Company seeks stockholder approval of an initial business combination, the initial stockholders have agreed to vote their Founder Shares and any Public Shares purchased during or after the Public Offering in favor of an initial business combination. Liquidation—Although the initial stockholders and their permitted transferees have waived their redemption rights with respect to the Founder Shares if the Company fails to complete an initial business combination within the prescribed time frame, they will be entitled to redemption rights with respect to any Public Shares they may own. Private Placement Warrants In conjunction with the Public Offering, the Sponsor and Harry E. Sloan purchased an aggregate of 6,333,334 private placement warrants (the “Private Placement Warrants”), at a price of $1.50 per warrant (approximately $9,500,000 in the aggregate) in the Private Placement. Each Private Placement Warrant entitles the holder to purchase one share of Class A common stock at $11.50 per share. A portion of the purchase price of the Private Placement Warrants was added to the proceeds from the Public Offering to be held in the Trust Account such that at closing of the Public Offering, $400,000,000 was placed in the Trust Account. On December 31, 2019, the Sponsor transferred 66,666 Private Placement Warrants to Scott Delman and 133,333 Private Placement Warrants to each of Joshua Kazam and Fredric Rosen for the same per-warrant purchase price initially paid by the Sponsor. The Private Placement Warrants (including the shares of common stock issuable upon exercise of the Private Placement Warrants) are not transferable, assignable or salable until 30 days after the completion of the initial business combination and they are non-redeemable for cash so long as they are held by the initial purchasers of the Private Placement Warrants or their permitted transferees. If the Private Placement Warrants are held by someone other than the initial purchasers of the Private Placement Warrants or their permitted transferees, the Private Placement Warrants will be redeemable for cash by the Company and exercisable by such holders on the same basis as the warrants included in the Units sold in the Public Offering. Otherwise, the Private Placement Warrants have terms and provisions that are identical to those of the Warrants sold as part of the Units in the Public Offering and have no net cash settlement provisions. If the Company does not complete an initial business combination, then the proceeds will be part of the liquidating distribution to the public stockholders and the Private Placement Warrants issued to the Sponsor, Scott Delman, Fredric Rosen, Joshua Kazam and Harry E. Sloan will expire worthless. Registration Rights The holders of the Founder Shares, Private Placement Warrants and Warrants that may be issued upon conversion of working capital loans (and any Class A common stock issuable upon the exercise of the Private Placement Warrants and warrants that may be issued upon conversion of working capital loans and upon conversion of the Founder Shares) are entitled to registration rights pursuant to a registration rights agreement, requiring the Company to register such securities for resale. The holders of these securities are entitled to make up to three demands, excluding short form demands, that we register such securities. In addition, the holders have certain “piggy-back” registration rights with respect to registration statements filed subsequent to our completion of our initial business combination. The Company will bear the expenses incurred in connection with the filing of any such registration statements. Related Party Loans The Sponsor agreed to loan the Company up to an aggregate of $300,000 by the issuance of an unsecured promissory note (the “Note”) to cover expenses related to the Public Offering. These loans were payable without interest on the earlier of December 31, 2019 or the completion of the Public Offering . Upon completion of the Public Offering , $60,675 was repaid in full. At December 31, 2019, there were no amounts outstanding under the Note. Administrative Services The Company will reimburse the Sponsor for office space, secretarial and administrative services provided to members of the Company’s management team by the Sponsor, members of the Sponsor, and the Company’s management team or their affiliates in an amount not to exceed $15,000 per month in the event such space and/or services are utilized and the Company does not pay a third party directly for such services, from the date of closing of the Public Offering. As of December 31, 2019, $90,000 of administrative expenses were incurred under this agreement and paid to the Sponsor. Upon completion of an initial business combination or the Company’s liquidation, the Company will cease paying these monthly fees. Working Capital Loans In order to finance transaction costs in connection with an intended initial business combination, the Sponsor or an affiliate of the Sponsor or certain of the Company’s officers and directors intend to loan the Company funds as may be required. Up to $1,500,000 of such loans may be convertible into warrants of the post-business combination entity at a price of $1.50 per warrant at the option of the lender. Such warrants would be identical to the Private Placement Warrants. Except for the foregoing, the terms of such loans, if any, have not been determined and no written agreements exist with respect to such loans. No amounts were borrowed under this arrangement as of December 31, 2019.

Commitments and Contingencies

3 Months Ended

6 Months Ended

12 Months Ended

Mar. 31, 2020

Jun. 30, 2020

Dec. 31, 2019

15.Commitments and Contingencies

Leases

Total rent expense for the three and six months ended June 30, 2020 was $4,702 and $7,785, respectively, and for the three and six months ended June 30, 2019 was $2,406 and $4,597, respectively.

Future minimum lease payments are as follows:


Years ending December 31,
From July 1, 2020 to December 31, 2020	$	8,435
2021		15,668
2022		13,947
2023		13,637
2024		12,029
Thereafter		35,766
Total	$	99,482

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:


Years ending December 31,
From July 1, 2020 to December 31, 2020	$	24,439
2021		51,487
2022		28,959
2023		17,463
2024		8,150
Thereafter		15,400
Total	$	145,898

Contingencies

Letters of Credit

13. Commitments and Contingencies

Leases

Total rent expense for the years ended December 31, 2019, 2018 and 2017 was $10,412, $5,266 and $3,431, respectively.

Future minimum lease payments are as follows:


Years ending December 31,
2020	$	10,067
2021		8,300
2022		8,374
2023		8,292
2024		7,310
Thereafter		23,685
Total	$	66,028

Other Contractual Obligations and Contingencies


Years ending December 31,
2020(a)	$	74,390
2021		54,725
2022		33,885
2023		13,689
2024		4,950
Thereafter		4,100
Total	$	185,739

(a) 2020 balance includes $13,880 of contingent success fees.

Included in the above contractual obligations are related party commitments from the MPA discussed in Note 13.

Litigation

From time to time, and in the ordinary course of business, the Company may be subject to certain claims, charges and litigation. Much of civil litigation to which the Company is a party relates to advertising and consumer protection matters. The majority of these cases were consolidated into a multi-district litigation (“MDL”) in February 2016 in the U.S. District Court for the District of Massachusetts along with claims against other entities and individuals within the DFS industry (the “DFS defendants”). On November 27, 2019, the Court granted in part and denied in part the DFS defendants’ motions to compel arbitration. The Company intends to vigorously defend itself. While we do not believe, based on currently available information, that the outcome of this proceeding will have a material adverse effect on the Company’s financial condition, the outcome could be material to the Company’s financial results for any particular period, depending, in part, upon the results for such period.

Settlement Liability

Letters of Credit

Trust Account and Fair Value Measurements

5. Commitments and Contingencies

Underwriting Agreement

As of March 31, 2020, the Company was committed to pay the Deferred Discount totaling $14,000,000, or 3.5% of the gross offering proceeds of the Public Offering, to the underwriters upon the Company’s consummation of an initial business combination.

In connection with the Closing, the Company paid the Deferred Discount in full.

5. Commitments and Contingencies

The Company is committed to pay the Deferred Discount totaling $14,000,000, or 3.5% of the gross offering proceeds of the Public Offering, to the underwriters upon the Company’s consummation of an initial business combination. The underwriters will not be entitled to any interest accrued on the Deferred Discount, and no Deferred Discount is payable to the underwriters if there is no business combination.

Trust Account - Diamond eagle acquisition

3 Months Ended

12 Months Ended

Mar. 31, 2020

Dec. 31, 2019

Trust Account

6. Trust Account

The fair value of the Company’s financial assets and liabilities reflects management’s estimate of amounts that the Company would have received in connection with the sale of the assets or paid in connection with the transfer of the liabilities in an orderly transaction between market participants at the measurement date. In connection with measuring the fair value of its assets and liabilities, the Company seeks to maximize the use of observable inputs (market data obtained from independent sources) and to minimize the use of unobservable inputs (internal assumptions about how market participants would price assets and liabilities). The following fair value hierarchy is used to classify assets and liabilities based on the observable inputs and unobservable inputs used in order to value the assets and liabilities:

Level 1: Quoted prices in active markets for identical assets or liabilities. An active market for an asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis.

Level 2: Observable inputs other than Level 1 inputs. Examples of Level 2 inputs include quoted prices in active markets for similar assets or liabilities and quoted prices for identical assets or liabilities in markets that are not active.

Level 3: Unobservable inputs based on our assessment of the assumptions that market participants would use in pricing the asset or liability.

The following table presents information about the Company’s assets that are measured at fair value on a recurring basis at March 31, 2020 and indicates the fair value hierarchy of the valuation inputs the Company utilized to determine such fair value:


			March 31,
Description	Level	2020
Assets:
Marketable securities held in Trust Account – U.S. Treasury Securities Money Market Fund	1	$	405,002,234

Transfers to/from Levels 1, 2, and 3 are recognized at the end of the reporting period. There were no transfers between levels for the three months ended March 31, 2020.

Level 1 instruments include investments in money market funds and U.S. Treasury securities. The Company uses inputs such as actual trade data, benchmark yields, quoted market prices from dealers or brokers, and other similar sources to determine the fair value of its investments.

As of December 31, 2019, investment securities in the Company’s Trust Account consisted of $403,960,089 in United States Treasury Bills and another $1,120 held as cash and cash equivalents. The Company classifies its Treasury Instruments and equivalent securities as held-to-maturity in accordance with FASB ASC 320 “Investments - Debt and Equity Securities”. Held-to-maturity securities are those securities which the Company has the ability and intent to hold until maturity. Held-to-maturity treasury securities are recorded at amortized cost on the accompanying December 31, 2019 consolidated balance sheet and adjusted for the amortization or accretion of premiums or discounts. The following table presents information about the Company’s assets that are measured at fair value on a recurring basis as of December 31, 2019 and indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value. In addition, the table presents the carrying value under ASC 320, excluding accrued interest income and gross unrealized holding gain. Since all of the Company’s permitted investments consist of U.S. government treasury bills and cash, fair values of its investments are determined by Level 1 inputs utilizing quoted prices (unadjusted) in active markets for identical assets as follows:


					Quoted prices in
	Carrying Value at		Gross unrealized		Active Markets
	December 31, 2019		Holding Gain		(Level 1)
Treasury Securities Held as of December 31, 2019(1)	$	403,960,089	$	31,347	$	403,991,436

(1)

Maturity date March 24, 2020.

On April 23, 2020, in connection with the Business Combination, the Company liquidated the Trust Account to fund the Business Combination and related expenses. See Note 8.

6. Trust Account and Fair Value Measurements


					Quoted prices in
	Carrying Value at		Gross unrealized		Active Markets
	December 31,2019		Holding Gain		(Level 1)
Treasury Securities Held as of December 31, 2019(1)	$	403,960,089	$	31,347	$	403,991,436

(1)

Maturity date March 24, 2020.

Stockholder's Equity

3 Months Ended

6 Months Ended

12 Months Ended

Mar. 31, 2020

Jun. 30, 2020

Dec. 31, 2019

8.Stockholder’s Equity

The condensed consolidated statements of change 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 and 2018 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 condensed 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 393,014 shares of Class B common stock to Jason Robins, the Chief Executive Officer of Old DK and of the Company, which converted into 393,014 shares of Class B common stock of the Company and which is recorded as stock-based compensation for the three and six months ended June 30, 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, they are excluded from the calculation of earnings per share of DraftKings.

Upon the consummation of the Business Combination, the mandatory conversion feature was triggered for the Company’s convertible notes. All outstanding principal of $109,165 and unpaid accrued interest of $3,380 were collectively converted to equity securities at a $10 per share. The noteholders received 11,254 shares of Class A common stock in New DraftKings as result of the conversion.

As part of the Business Combination $665,485 of Class A common stock and Additional Paid in Capital was recorded, net of transaction costs of $10,631, in relation to DEAC shares being recapitalized. The Company then used $186,477 as cash consideration in its acquisition of SBTech and $7,192 for the buyout of unaccredited investors. Net cash proceeds to the Company were $484,962.

In June 2020, the Company issued 16,000 new shares of our Class A common stock in a public offering for net proceeds (net of underwriting fees) of $620,800.

As of June 30, 2020, the Company had 300,000 shares authorized of preferred stock, $0.0001 par value, none of which were issued and outstanding as of June 30, 2020 or December 31, 2019.

9. Common Stock

Per the Company’s Ninth Amended and Restated Certificate of Incorporation, the Company is authorized to issue 735,000 shares of $0.001 par value common stock. As of December 31, 2019 and 2018, 389,610 and 384,009 shares, respectively, of $0.001 par value common stock were issued and outstanding.

Each share of common stock entitles the holder to one vote on all matters submitted to a vote of the Company’s stockholders. Common stockholders are entitled to receive dividends, if any, as may be declared by the board of directors, subject to the preferential dividend rights of the preferred stockholders. No dividends have been declared through December 31, 2019.

7. Stockholders’ Equity

Class A Common Stock — DEAC is authorized to issue 380,000,000 shares of Class A common stock with a par value of $0.0001 per share. At March 31, 2020 and December 31, 2019, there were 40,000,000 shares of Class A common stock issued and outstanding of which, 38,475,795 and 38,427,853, respectively, were classified outside of permanent equity.

Class B Common Stock — DEAC is authorized to issue 20,000,000 shares of Class B common stock with a par value of $0.0001 per share. Holders of DEAC’s Class B common stock are entitled to one vote for each share. At March 31, 2020 and December 31, 2019, there were 10,000,000 shares of Class B common stock issued and outstanding.

Preferred stock — DEAC is authorized to issue 1,000,000 shares of preferred stock with a par value of $0.0001 per share. At March 31, 2020 and December 31, 2019, there were no shares of preferred stock issued or outstanding.

Warrants — Public Warrants may only be exercised for a whole number of shares. No fractional Public Warrants will be issued upon separation of the Units and only whole Public Warrants will trade. The Public Warrants will become exercisable on the later of (a) 30 days after the completion of an initial business combination or (b) 12 months from the closing of the Public Offering; provided in each case that the Company has an effective registration statement under the Securities Act covering the shares of Class A Common Stock issuable upon exercise of the Public Warrants and a current prospectus relating to them is available (or the Company permits holders to exercise their Public Warrants on a cashless basis and such cashless exercise is exempt from registration under the Securities Act). The Company has agreed that as soon as practicable, but in no event later than 15 business days after the closing of an initial business combination, the Company will use its best efforts to file with the SEC a registration statement for the registration, under the Securities Act, of the shares of Class A Common Stock issuable upon exercise of the Public Warrants. The Company will use its best efforts to cause the same to become effective and to maintain the effectiveness of such registration statement, and a current prospectus relating thereto, until the expiration of the Public Warrants in accordance with the provisions of the warrant agreement relating to the Warrants. If a registration statement covering the shares of Class A Common Stock issuable upon exercise of the Warrants is not effective by the sixtieth (60th) day after the closing of the initial business combination, warrant holders may, until such time as there is an effective registration statement and during any period when the Company will have failed to maintain an effective registration statement, exercise warrants on a “cashless basis” in accordance with Section 3(a)(9) of the Securities Act or another exemption. The Public Warrants will expire five years after the completion of an initial business combination or earlier upon redemption or liquidation.

The Private Placement Warrants are identical to the Public Warrants underlying the Units sold in the Public Offering, except that the Private Placement Warrants and the shares of Class A Common Stock issuable upon exercise of the Private Placement Warrants will not be transferable, assignable or salable until 30 days after the completion of an initial business combination, subject to certain limited exceptions. Additionally, the Private Placement Warrants will be non-redeemable so long as they are held by the initial purchasers or such purchasers’ permitted transferees. If the Private Placement Warrants are held by someone other than their initial purchasers or their permitted transferees, the Private Placement Warrants will be redeemable by the Company and exercisable by such holders on the same basis as the Public Warrants.

The Company may call the Warrants for redemption (except with respect to the Private Placement Warrants):

in whole and not in part;

at a price of $0.01 per warrant;

upon a minimum of 30 days’ prior written notice of redemption; and

if, and only if, the last reported closing price of the Class A Common Stock equals or exceeds $18.00 per share for any 20 trading days within a 30‑trading day period ending on the third trading day prior to the date on which the Company sends the notice of redemption to the warrant holders.

Additionally, commencing ninety days after the Warrants become exercisable, the Company may redeem its outstanding Warrants (including the Private Placement Warrants) in whole and not in part, for the number of shares of Class A Common Stock determined by reference to the table set forth in the Company’s prospectus relating to the Public Offering based on the redemption date and the “fair market value” of the Class A Common Stock, upon a minimum of 30 days’ prior written notice of redemption and if, and only if, the last sale price of the Class A Common Stock equals or exceeds $10.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) on the trading day prior to the date on which the Company sends the notice of redemption to the warrant holders, if, and only if, the Private Placement Warrants are also concurrently exchanged at the same price (equal to a number of shares of Class A Common Stock) as the outstanding Warrants, as described above and if, and only if, there is an effective registration statement covering the shares of Class A Common Stock issuable upon exercise of the Warrants and a current prospectus relating thereto available throughout the 30-day period after written notice of redemption is given. The “fair market value” of the shares of Class A Common Stock is the average last reported sale price of the Class A Common Stock for the 10 trading days ending on the third trading day prior to the date on which the notice of redemption is sent to the holders of warrants.

If the Company calls the Warrants for redemption, management will have the option to require all holders that wish to exercise the Warrants to do so on a “cashless basis,” as described in the warrant agreement.

The exercise price and number of shares of Class A Common Stock issuable upon exercise of the Warrants may be adjusted in certain circumstances.

7.Stockholders’ Equity

Common Stock —The authorized shares of common stock of the Company include up to 400,000,000 shares, including 380,000,000 shares of Class A common stock and 20,000,000 shares of Class B common stock. Holders of the shares of Class A common stock and holders of the shares of Class B common stock vote together as a single class on all matters submitted to a vote of the Company’s stockholders, except as required by law. Each share of common stock has one vote. At December 31, 2019, there were 40,000,000 shares of Class A common stock outstanding and 10,000,000 shares of Class B common stock outstanding. In connection with the underwriters’ partial exercise of their over-allotment option prior to the closing of the Public Offering, on May 10, 2019, the Sponsor and Harry E. Sloan surrendered an aggregate of 62,500 Founder Shares (consisting of 31,875 by the Sponsor and 30,625 by Harry E. Sloan) to the Company for no consideration, resulting in the Sponsor holding 5,100,000 Founder Shares and Harry E. Sloan holding 4,900,000 Founder Shares. On December 31, 2019, the Sponsor transferred 20,000 Founder Shares to each of the Company’s independent directors, resulting in the Sponsor holding 5,020,000 Founder Shares, for the same per-share purchase price initially paid by the Sponsor.

Preferred Stock — The Company is authorized to issue 1,000,000 preferred shares. At December 31, 2019, no preferred shares were outstanding.

Warrants — Public Warrants may only be exercised for a whole number of shares. The Public Warrants will become exercisable on the later of (a) 30 days after the completion of an initial business combination or (b) 12 months from the closing of the Public Offering; provided in each case that the Company has an effective registration statement under the Securities Act covering the shares of Class A common stock issuable upon exercise of the Public Warrants and a current prospectus relating to them is available (or the Company permits holders to exercise their Public Warrants on a cashless basis and such cashless exercise is exempt from registration under the Securities Act). The Company has agreed that as soon as practicable, but in no event later than 15 business days after the closing of an initial business combination, the Company will use its best efforts to file with the SEC a registration statement for the registration, under the Securities Act, of the shares of Class A common stock issuable upon exercise of the Public Warrants. The Company will use its best efforts to cause the same to become effective and to maintain the effectiveness of such registration statement, and a current prospectus relating thereto, until the expiration of the Public Warrants in accordance with the provisions of the warrant agreement relating to the warrants. If a registration statement covering the shares of Class A common stock issuable upon exercise of the warrants is not effective by the sixtieth (60th) day after the closing of the initial business combination, warrant holders may, until such time as there is an effective registration statement and during any period when the Company will have failed to maintain an effective registration statement, exercise warrants on a “cashless basis” in accordance with Section 3(a)(9) of the Securities Act or another exemption. The Public Warrants will expire five years after the completion of an initial business combination or earlier upon redemption or liquidation.

The Private Placement Warrants are identical to the Public Warrants underlying the Units sold in the Public Offering, except that the Private Placement Warrants and the shares of Class A common stock issuable upon exercise of the Private Placement Warrants will not be transferable, assignable or salable until 30 days after the completion of an initial business combination, subject to certain limited exceptions. Additionally, the Private Placement Warrants will be non-redeemable so long as they are held by the initial purchasers or such purchasers’ permitted transferees. If the Private Placement Warrants are held by someone other than their initial purchasers or their permitted transferees, the Private Placement Warrants will be redeemable by the Company and exercisable by such holders on the same basis as the Public Warrants.

The Company may call the warrants for redemption (except with respect to the Private Placement Warrants):

in whole and not in part;

at a price of $0.01 per warrant;

upon a minimum of 30 days’ prior written notice of redemption; and

if, and only if, the last reported closing price of the Class A common stock equals or exceeds $18.00 per share for any 20 trading days within a 30-trading day period ending on the third trading day prior to the date on which the Company sends the notice of redemption to the warrant holders.

Additionally, commencing ninety days after the Warrants become exercisable, the Company may redeem its outstanding warrants in whole and not in part, for the number of shares of Class A common stock determined by reference to the table set forth in the Company’s prospectus relating to the Public Offering based on the redemption date and the “fair market value” of the Class A common stock, upon a minimum of 30 days’ prior written notice of redemption and if, and only if, the last sale price of the shares of Class A common stock equals or exceeds $10.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) on the trading day prior to the date on which the Company sends the notice of redemption to the warrant holders, if, and only if, the Private Placement Warrants are also concurrently exchanged at the same price (equal to a number of shares of Class A common stock) as the outstanding warrants, as described above and if, and only if, there is an effective registration statement covering the shares of Class A common stock issuable upon exercise of the Warrants and a current prospectus relating thereto available throughout the 30-day period after written notice of redemption is given. The “fair market value” of the shares of Class A common stock is the average last reported sale price of the Class A common stock for the 10 trading days ending on the third trading day prior to the date on which the notice of redemption is sent to the holders of warrants.

Subsequent Events	3 Months Ended	6 Months Ended	12 Months Ended
Subsequent Events	Mar. 31, 2020	Jun. 30, 2020	Dec. 31, 2019
Subsequent Events		16.Subsequent Events The Company considers events or transactions that occur after the balance sheet date, but before the unaudited condensed consolidated financial statements are issued, to provide additional evidence relative to certain estimates or identify matters that require additional disclosures. The Company evaluated subsequent events through August 14, 2020, the date on which the unaudited condensed consolidated financial statements were available to be issued. The unaudited condensed consolidated financial statements reflect those material items that arose after the balance sheet date, but prior to this date that would be considered recognized subsequent events.	18. Subsequent Events On December 22, 2019, Diamond Eagle Acquisition Corp, a special purpose acquisition company (“Diamond Eagle”), entered into a Business Combination Agreement (the “Business Combination Agreement”) with DraftKings Inc. (“DraftKings”), the Group, the Group’s shareholders, the representative of the Group’s shareholders, DEAC NV Merger Corp., a Nevada corporation and a wholly-owned subsidiary of DEAC (“DEAC Nevada”), DEAC Merger Sub Inc., a Delaware corporation and a wholly-owned subsidiary of DEAC (“Merger Sub”), pursuant to which (i) Diamond Eagle will merge with and into DEAC Nevada, with DEAC Nevada surviving the merger (the “reincorporation”), (ii) following the reincorporation, Merger Sub will merge with and into DraftKings with DraftKings surviving the merger (the “DraftKings Merger”), (iii) immediately following the DraftKings Merger, Diamond Eagle will acquire all of the issued and outstanding share capital of SBTech and vested in-the-money options exercisable for SBTech share capital (the “SBTech Acquisition”) for approximately €590,000, consisting of (x) €180,000 in cash, subject to customary net debt and working capital and certain other specified adjustments payable in respect of the SBT shares and 30% of the in-the-money vested SBT options and (y) approximately €410,000 in shares of New DraftKings Class A common stock, valued at the redemption price for Diamond Eagle’s public shares in the Business Combination, and in the form of newly issued in-the-money vested options of New DraftKings exercisable for New DraftKings Class A common stock and (iv) DEAC Nevada will be renamed DraftKings Inc. Each of the DraftKings Merger and the SBTech Acquisition will be on the terms and subject to the conditions set forth in the Business Combination Agreement. The transaction is expected to close in 2020. In January and February 2020, DraftKings issued $40,042 of additional Convertible Notes. Refer to Note 7 for the associated terms and conditions. In February 2020, the Company paid off its $6,750 term note outstanding at December 31, 2019. In March 2020, the Company withdrew $44,500 in funds from its Credit Agreement with Pacific Western Bank. The Net facility available from the Credit Agreement for future withdrawals as of March 26, 2020 is $1,019, which represents the $50,000 facility less the $44,500 in funds withdrawn and the $4,481 in letters of credit outlined in Note 13. The $44,500 remains on deposit with Pacific Western Bank on March 26, 2020. COVID‑19 is having a significant impact on the Company. The direct impact on the Company beyond disruptions in normal business operations is primarily through the suspension, postponement and cancellation of major sports seasons and sporting events. Typically, during the March and April time periods, the Company would have significant user interest and activity in our DFS and Sportsbook product offerings for sporting events such as the NCAA college basketball tournament, the Masters golf tournament, as well as late season games and early playoff series of the National Basketball Association and the National Hockey League. The status of most of these sporting events is unknown, including whether the NBA season will be completed either in part or in its entirety on a delayed schedule or whether the Masters will be played anytime in calendar year 2020. The ultimate impact of COVID‑19 on the Company’s financial and operating results is unknown and will depend on the length of time that these disruptions exist and whether the sports seasons and sporting events will ultimately be suspended, postponed, or cancelled; however, COVID‑19 has had an impact and may continue to have an impact, the full extent of which is unknown, but which could be material. The Company considers events or transactions that occur after the balance sheet date, but before the consolidated financial statements are issued to provide additional evidence relative to certain estimates or identify matters that require additional disclosures. The Company evaluated subsequent events through March 26, 2020, the date on which the consolidated financial statements were available to be issued. The consolidated financial statements reflect those material items that arose after the balance sheet date, but prior to this date that would be considered recognized subsequent events.
Diamond eagle acquisition
Subsequent Events	8. Subsequent Events As described in Note 1, the Company completed its initial business combination on April 23, 2020. In connection with the closing of the Business Combination, the Company paid the Deferred Discount of $14,000,000 to the underwriters of the Public Offering and paid $90,172 to redeeming Class A stockholders. On April 23, 2020, the Company closed the PIPE Investment. See Note 1. On April 15, 2020, the Company filed a Registration Statement on Form S-1 registering these shares, which was declared effective by the U.S. Securities and Exchange Commission on April 23, 2020.

Significant Accounting Policies (Policies)

3 Months Ended

6 Months Ended

12 Months Ended

Mar. 31, 2020

Jun. 30, 2020

Dec. 31, 2019

Earnings (loss) per share

Concentrations of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of operating cash and cash reserved for users. The Company maintains cash and cash reserves for users primarily across five financial institutions; however, the vast majority is held with one financial institution within separate bank accounts, which management believes to be of a high credit quality, in amounts that exceed federally insured limits. The Company does not believe that it is subject to unusual credit risk beyond the normal credit risk associated with commercial banking relationships.

Fair Value Measurements

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

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 the financial statements and tax bases 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 provision. 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.

Recently Adopted Accounting Pronouncements

Recent Accounting Pronouncements Not Yet Adopted

Basis of Presentation

The fair value of the Company’s assets and liabilities, which qualify as financial instruments under FASB ASC 820, “Fair Value Measurements and Disclosures,” approximates the carrying amounts represented in the consolidated balance sheet with the exception of investments in Trust, as they are carried at amortized cost.

Offering Costs

Redeemable Shares

Accordingly, at December 31, 2019, 38,427,853 shares of the 40,000,000 shares of Class A common stock included in the Units were classified outside of permanent equity.

Trust Account (Tables)

3 Months Ended

12 Months Ended

Mar. 31, 2020

Dec. 31, 2019

Summary of fair values of its investments


			March 31,
Description	Level	2020
Assets:
Marketable securities held in Trust Account – U.S. Treasury Securities Money Market Fund	1	$	405,002,234


					Quoted prices in
	Carrying Value at		Gross unrealized		Active Markets
	December 31, 2019		Holding Gain		(Level 1)
Treasury Securities Held as of December 31, 2019(1)	$	403,960,089	$	31,347	$	403,991,436

(1)

Maturity date March 24, 2020.


					Quoted prices in
	Carrying Value at		Gross unrealized		Active Markets
	December 31,2019		Holding Gain		(Level 1)
Treasury Securities Held as of December 31, 2019(1)	$	403,960,089	$	31,347	$	403,991,436

Maturity date March 24, 2020.

Organisation and Business Operations - Business Combination (Details) - Diamond eagle acquisition $ in Thousands, € in Millions	Dec. 22, 2019 EUR (€)	Dec. 22, 2019 USD ($)
Subsidiary, Sale of Stock [Line Items]
Current commitments \| $		$ 304,700
DK and SBT
Subsidiary, Sale of Stock [Line Items]
Total consideration \| $		2,700,000
Cash consideration	€ 180
DK Sellers
Subsidiary, Sale of Stock [Line Items]
Equity consideration \| $		2,055,000
DK Sellers \| DK and SBT
Subsidiary, Sale of Stock [Line Items]
Equity consideration \| $		$ 2,055,000
SBT Sellers
Subsidiary, Sale of Stock [Line Items]
Total consideration	590
Equity consideration	410
Cash consideration	180
SBT Sellers \| DK and SBT
Subsidiary, Sale of Stock [Line Items]
Total consideration	590
Equity consideration	€ 410
Percentage of voting power of the capital stock	30.00%	30.00%
Mr. Robins \| DK and SBT
Subsidiary, Sale of Stock [Line Items]
Percentage of voting power of the capital stock	90.00%	90.00%

Organization and Business Operations - Financing (Details) - Diamond eagle acquisition - USD ($)			3 Months Ended	9 Months Ended	12 Months Ended
	May 14, 2019	May 10, 2019	Mar. 31, 2020	Dec. 31, 2019	Dec. 31, 2019
Subsidiary, Sale of Stock [Line Items]
Proceeds from issuance of warrants				$ 9,500,000
Number of stock to be purchased by warrants				6,333,334	6,333,334
Amount deposited in trust account	$ 400,000,000			$ 400,000,000
Private Placement
Subsidiary, Sale of Stock [Line Items]
Proceeds from issuance of warrants		$ 9,500,000	$ 9,500,000		$ 9,500,000
Number of stock to be purchased by warrants	6,333,334		6,333,334	6,333,334	6,333,334
Amount deposited in trust account			$ 400,000,000		$ 400,000,000
Over-allotment
Subsidiary, Sale of Stock [Line Items]
Number of shares issued	5,000,000	5,000,000	5,000,000	5,000,000

Organization and Business Operations - Trust Account (Details) - Diamond eagle acquisition - USD ($)	3 Months Ended	9 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019	Dec. 31, 2019
Subsidiary, Sale of Stock [Line Items]
Annual limit to fund working capital requirements	$ 250,000	$ 250,000	$ 250,000
Obligation to redeem common stock included in the units being sold in the public offering (as a percent)	100.00%	100.00%
Threshold period from closing of public offering the company is obligated to complete business combination	24 months	24 months
Redemption of common stock included in the units sold in public offering (as a percent)	100.00%
Threshold period from closing of public offering the company is unable to complete business combination	24 months
Cash equal to pro rata share calculated based on business days prior to consummation of business combination (in days)		2 days
Minimum net tangible assets upon consummation of the Company's initial Business Combination and after payment of underwriters' fees and commissions		$ 5,000,001	5,000,001
Working capital deficit			$ 682,669
Cash Withdrawn From Trust Account	$ 404,981,569

Organization and Business Operations - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions			6 Months Ended	12 Months Ended
	Dec. 22, 2019	Dec. 16, 2019	Jun. 30, 2020	Dec. 31, 2017	Dec. 31, 2019	May 10, 2019
Debt Conversion, Converted Instrument, Shares Issued				160,928,000
Class A common stock \| Convertible Notes Payable [Member]
Debt Conversion, Converted Instrument, Shares Issued			11,254,000
Diamond eagle acquisition
Share Price					$ 10.00	$ 12.00
Class of Warrant or Right, Number of Securities Called by Warrants or Rights					6,333,334
Diamond eagle acquisition \| Convertible Notes Payable [Member]
Debt Instrument, Face Amount		$ 109.2
Debt Conversion, Converted Instrument, Shares Issued		11,254,479
Diamond eagle acquisition \| P I P E Investment [Member]
Stock Issued During Period, Shares, New Issues	30,471,352
Share Price	$ 10.00
Class of Warrant or Right, Number of Securities Called by Warrants or Rights	3,000,000

Significant Accounting Policies (Details) - USD ($)					3 Months Ended						6 Months Ended		9 Months Ended	12 Months Ended
Significant Accounting Policies (Details) - USD ($)	Jun. 30, 2020	Dec. 31, 2019	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2020	Mar. 31, 2020	Mar. 31, 2020	Dec. 31, 2019	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	May 14, 2019
Offering Costs
Offering costs											$ 11,564,000	$ 0
Income Taxes
Income tax expense					$ 323,000				$ 7,000		332,000	16,000		$ 58,000	$ 105,000	$ 210,000
Net Income (Loss) Per Share
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	65,239		52,050											157,290	114,299	63,642
Common Stock, Shares Authorized		735,000						735,000					735,000	735,000	735,000
Net loss					$ (161,437,000)	$ (68,680,000)			$ (28,113,000)	$ (29,554,000)	$ (230,117,000)	$ (57,667,000)		$ (142,734,000)	$ (76,220,000)	$ (75,556,000)
Warrants
Net Income (Loss) Per Share
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	2,327		3,783											515	2,422	2,080
Class A common stock
Net Income (Loss) Per Share
Common Stock, Shares Authorized	900,000,000	735,000,000			900,000,000			735,000,000			900,000,000		735,000,000	735,000,000
Class B common stock
Net Income (Loss) Per Share
Common Stock, Shares Authorized	900,000,000				900,000,000						900,000,000
Diamond eagle acquisition
Offering Costs
Offering costs		$ 22,555,869					$ 22,555,870						$ 306,544
Underwriters' discounts							22,000,000						22,000,000
Deferred underwriting compensation		14,000,000				14,000,000	14,000,000	$ 14,000,000					14,000,000	$ 14,000,000
Outstanding Expenses														224,395
Income Taxes
Unrecognized tax benefits		0				0	0	0					0	0
Income tax expense				$ 0			246,289	944,494					944,494	944,494
Amounts accrued for the payment of interest and penalties		0				0	0	0					0	0
Net Income (Loss) Per Share
Interest Income Earned On Trust Account Net Of Applicable Administration Fee Franchise Taxes Working Capital														5,111,208
Interest Income Earned On Trust Account Net Of Applicable To Franchise Taxes							50,000						153,971
Cash, FDIC Insured Amount		$ 250,000				$ 250,000	250,000	$ 250,000					$ 250,000	$ 250,000
Common Stock, Shares Authorized		5,250,000						5,250,000					5,250,000	5,250,000
Net loss				$ (675)			$ 479,411						$ 2,309,409
Minimum Net Tangible Assets		$ 5,000,001						$ 5,000,001					$ 5,000,001	$ 5,000,001
Diamond eagle acquisition \| Warrants
Net Income (Loss) Per Share
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount							19,666,667
Diamond eagle acquisition \| Warrants Issued As Part Of Public Units [Member]
Net Income (Loss) Per Share
Incremental Common Shares Attributable to Dilutive Effect Of Warrants							2,615,800
Diamond eagle acquisition \| Warrants Issued In P I P E Investment [Member]
Net Income (Loss) Per Share
Incremental Common Shares Attributable to Dilutive Effect Of Warrants							1,242,505
Diamond eagle acquisition \| Class A common stock
Income Taxes
Income tax expense							$ 246,289,000
Net Income (Loss) Per Share
Common Stock, Shares Authorized		380,000,000				380,000,000	380,000,000	380,000,000					380,000,000	380,000,000
Common shares, shares outstanding		40,000,000				40,000,000	40,000,000	40,000,000					40,000,000	40,000,000
Diamond eagle acquisition \| Class B common stock
Net Income (Loss) Per Share
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount							1,312,500
Common Stock, Shares Authorized		20,000,000				20,000,000	20,000,000	20,000,000					20,000,000	20,000,000
Net loss														$ 1,453,333
Common shares, shares outstanding		10,000,000				10,000,000	10,000,000	10,000,000					10,000,000	10,000,000
Diamond eagle acquisition \| Public Offering
Offering Costs
Deferred underwriting compensation																	$ 14,000,000
Legal and accounting fees							$ 555,870							$ 555,869
Net Income (Loss) Per Share
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount							13,333,333						13,333,333
Diamond eagle acquisition \| Private Placement
Net Income (Loss) Per Share
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount							6,333,334						6,333,334
Diamond eagle acquisition \| Maximum
Net Income (Loss) Per Share
Interest Income Earned On Trust Account Net Of Applicable Administration Fee Franchise Taxes Working Capital							$ 250,000
Cash, FDIC Insured Amount		$ 250,000						$ 250,000					$ 250,000	$ 250,000

Public Offering (Details) - USD ($)			3 Months Ended	9 Months Ended	12 Months Ended
Public Offering (Details) - USD ($)	May 14, 2019	May 10, 2019	Mar. 31, 2020	Dec. 31, 2019	Dec. 31, 2019	Jun. 30, 2020	Dec. 31, 2018
Subsidiary, Sale of Stock [Line Items]
Number of shares authorized				735,000	735,000		735,000
Class A common stock
Subsidiary, Sale of Stock [Line Items]
Number of shares authorized				735,000,000	735,000,000	900,000,000
Public Offering
Subsidiary, Sale of Stock [Line Items]
Underwriting discount per unit	$ 0.20
Diamond eagle acquisition
Subsidiary, Sale of Stock [Line Items]
Number of shares authorized				5,250,000	5,250,000
Share price		$ 12.00		$ 10.00	$ 10.00
Warrants exercisable term after the completion of a business combination			30 days	30 days
Warrants exercisable term from the closing of the public offering			12 months	12 months
Warrants and Rights Outstanding, Term			5 years
Payment of underwriters discount				$ 8,000,000
Deferred underwriting compensation			$ 14,000,000	$ 14,000,000	$ 14,000,000
Diamond eagle acquisition \| Class A common stock
Subsidiary, Sale of Stock [Line Items]
Number of shares authorized			380,000,000	380,000,000	380,000,000
Diamond eagle acquisition \| Public Offering
Subsidiary, Sale of Stock [Line Items]
Number of shares issued	40,000,000			40,000,000
Share price	$ 10.00			$ 10.00	$ 10.00
Number of warrants in a unit	0.33
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right	1
Warrants exercisable term after the completion of a business combination	30 days			30 days
Warrants exercisable term from the closing of the public offering	12 months			12 months
Warrants Issued During Period, Shares, Warrants				40,000,000
Warrants and Rights Outstanding, Term				24 months	24 months
Payment of underwriters discount	$ 8,000,000
Deferred underwriting compensation	$ 14,000,000
Deferred underwriting discount per unit	$ 0.35
Diamond eagle acquisition \| Public Offering \| Class A common stock
Subsidiary, Sale of Stock [Line Items]
Share price	$ 11.50			$ 0.0001	$ 0.0001
Number of shares in a unit	1
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right				1	1
Diamond eagle acquisition \| Over-allotment
Subsidiary, Sale of Stock [Line Items]
Number of shares issued	5,000,000	5,000,000	5,000,000	5,000,000
Number of shares authorized			5,250,000
Payment of underwriters discount				$ 8,000,000
Payment for gross proceeds					$ 50,000,000
Underwriting discount per unit				$ 0.20
Deferred underwriting compensation				$ 14,000,000	$ 14,000,000
Deferred underwriting discount per unit				$ 0.35

Related Party Transactions - Founder Shares (Details) - USD ($)						3 Months Ended			9 Months Ended	12 Months Ended
	Dec. 31, 2019	May 10, 2019	Apr. 10, 2019	Mar. 31, 2019	Mar. 28, 2019	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2019	Dec. 31, 2019	Dec. 31, 2019	Dec. 31, 2018
Related Party Transaction [Line Items]
Common Stock Issued						$ 620,800,000		$ 438,000		$ 439,000	$ 340,000
Number of founder shares outstanding	389,610								389,610	389,610	384,009
Class B common stock
Related Party Transaction [Line Items]
Number of founder shares outstanding						393,014,000
Diamond eagle acquisition
Related Party Transaction [Line Items]
Common Stock Issued				$ 25,000
Number of shares held by sponsor										5,020,000
Threshold period for not to transfer, assign or sell any of their shares or warrants after the completion of the initial business combination		1 year					30 days		30 days
Original issue prices	$ 10.00	$ 12.00							$ 10.00	$ 10.00
Closing price of share for threshold trading days		20 days					20 days		20 days
Closing price of share for threshold consecutive trading days		30 days					30 days		30 days
Threshold period after the business combination in which the 20 trading days within any 30 trading day period commences		150 days
Diamond eagle acquisition \| Harry E. Sloan
Related Party Transaction [Line Items]
Transfer of shares to initial stockholder			4,930,625
Purchase price			$ 12,250
Number of shares for forfeited		30,625
Diamond eagle acquisition \| Sponsor
Related Party Transaction [Line Items]
Transfer of shares to initial stockholder	20,000									20,000
Number of shares held by sponsor	5,020,000		5,131,875
Number of shares for forfeited		31,875
Number of founder shares outstanding		10,000,000
Diamond eagle acquisition \| Mr. Sloan
Related Party Transaction [Line Items]
Number of shares for forfeited		30,625
Diamond eagle acquisition \| Independent directors
Related Party Transaction [Line Items]
Transfer of shares to initial stockholder	80,000
Diamond eagle acquisition \| Class B common stock
Related Party Transaction [Line Items]
Number of founder shares outstanding	10,000,000						10,000,000		10,000,000	10,000,000
Diamond eagle acquisition \| Class B common stock \| Sponsor
Related Party Transaction [Line Items]
Number of shares issued to sponsor					10,062,500
Common Stock Issued					$ 25,000
Capital contribution by sponsor per share					$ 0.002

Related Party Transactions - Private Placement Warrants (Details) - Diamond eagle acquisition - USD ($)				3 Months Ended	9 Months Ended	12 Months Ended
	Dec. 31, 2019	May 14, 2019	May 10, 2019	Mar. 31, 2020	Dec. 31, 2019	Dec. 31, 2019
Related Party Transaction [Line Items]
Number of stock to be purchased by warrants	6,333,334				6,333,334	6,333,334
Exercise price of warrants	$ 1.50			$ 1.50	$ 1.50	$ 1.50
Proceeds from issuance of warrants					$ 9,500,000
Share price	$ 10.00		$ 12.00		$ 10.00	$ 10.00
Amount deposited in trust account		$ 400,000,000			$ 400,000,000
Threshold period for not to transfer, assign or sell any of their shares or warrants after the completion of the initial business combination			1 year	30 days	30 days
Private Placement
Related Party Transaction [Line Items]
Number of stock to be purchased by warrants	6,333,334	6,333,334		6,333,334	6,333,334	6,333,334
Exercise price of warrants	$ 1.50			$ 1.50	$ 1.50	$ 1.50
Proceeds from issuance of warrants			$ 9,500,000	$ 9,500,000		$ 9,500,000
Amount deposited in trust account				$ 400,000,000		$ 400,000,000
Threshold period for not to transfer, assign or sell any of their shares or warrants after the completion of the initial business combination				30 days		30 days
Shares Transferred To Each Of The Independent Director						333,332
Private Placement \| Class A common stock
Related Party Transaction [Line Items]
Number of shares issuable per warrant	1			1	1	1
Share price	$ 11.50			$ 11.50	$ 11.50	$ 11.50
Private Placement \| Scott Delman
Related Party Transaction [Line Items]
Transfer of shares to initial stockholder	66,666
Private Placement \| Joshua Kazam and Fredric Rosen
Related Party Transaction [Line Items]
Transfer of shares to initial stockholder	133,333

Related Party Transactions - Other (Details) - USD ($)	3 Months Ended				6 Months Ended		9 Months Ended	12 Months Ended
Related Party Transactions - Other (Details) - USD ($)	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019	Dec. 31, 2019
Administrative Services Agreement
Total administrative services expenses	$ 11,748,000		$ 0		$ 12,349,000	$ 0
Diamond eagle acquisition
Sponsor Loans
Proceeds from Related Party Debt		$ 300,000					$ 60,675	$ 300,000
Repayments of Related Party Debt		60,875						60,675
Balance outstanding		0					$ 0	0
Administrative Services Agreement
Maximum administrative services expenses per month		15,000						15,000
Total administrative services expenses		45,000		$ 0				90,000
Working Capital Loans
Maximum amount of working capital loans		$ 1,500,000						$ 1,500,000
Exercise price of warrants		$ 1.50					$ 1.50	$ 1.50
Working capital loan balance		$ 0					$ 0	$ 0

Commitments and Contingencies (Details) - Diamond eagle acquisition - USD ($)	3 Months Ended	9 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Deferred Discount	$ 14,000,000	$ 14,000,000
Deferred discount as a percent of gross offering proceeds	3.50%	3.50%

Trust Account -fair value (Details)	Mar. 31, 2020 USD ($)
Diamond eagle acquisition \| US Treasury Securities [Member] \| Quoted Prices in Active Markets (Level 1) \| Fair Value, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure	$ 405,002,234

Trust Account (Details) - Diamond eagle acquisition - USD ($)	Mar. 31, 2020	Dec. 31, 2019
Schedule of Held-to-maturity Securities [Line Items]
Cash and cash equivalents	$ 1,120	$ 1,120
U.S. Government Treasury Securities
Schedule of Held-to-maturity Securities [Line Items]
Carrying Value		403,960,089
Gross Unrealized Holding Gain		31,347
Quoted Prices in Active Markets (Level 1) \| U.S. Government Treasury Securities
Schedule of Held-to-maturity Securities [Line Items]
Fair Value		$ 403,991,436

Stockholder's Equity (Details) - $ / shares		3 Months Ended	9 Months Ended
Stockholder's Equity (Details) - $ / shares	May 10, 2019	Mar. 31, 2020	Dec. 31, 2019	Jun. 30, 2020	Dec. 31, 2018
Class of Stock [Line Items]
Common shares, shares authorized			735,000		735,000
Common shares, par value			$ 0.001		$ 0.001
Preferred shares, shares authorized				300,000
Preferred shares, par value			$ 0.0001	$ 0.0001
Preferred shares, shares issued			0	0
Preferred shares, shares outstanding			0	0
Class A common stock
Class of Stock [Line Items]
Common shares, shares authorized			735,000,000	900,000,000
Common shares, par value			$ 0.0001	$ 0.0001
Class B common stock
Class of Stock [Line Items]
Common shares, shares authorized				900,000,000
Common shares, par value				$ 0.0001
Diamond eagle acquisition
Class of Stock [Line Items]
Common shares, shares authorized			5,250,000
Preferred shares, shares authorized		1,000,000	1,000,000
Preferred shares, par value		$ 0.0001	$ 0.0001
Preferred shares, shares issued		0	0
Preferred shares, shares outstanding		0	0
Warrants and Rights Outstanding, Exercisable Term, After Business Combination		30 days	30 days
Warrants and Rights Outstanding, Exercisable Term, From Closing Of Public Offering		12 months	12 months
Threshold period for filling registration statement after business combination		15 days	15 days
Warrants expiration term		5 years
Threshold Period for Not to Transfer, Assign or Sell Any Shares or Warrants After Completion of Initial Business Combination	1 year	30 days	30 days
Redemption price per warrant		$ 0.01	$ 0.01
Threshold period for written notice of redemption		30 days	30 days
Redemption price of stock		$ 18.00	$ 18.00
Closing price of share for threshold trading days	20 days	20 days	20 days
Closing price of share for threshold consecutive trading days	30 days	30 days	30 days
Redemption period after the warrants become exercisable		90 days	30 days
Share Price	$ 12.00		$ 10.00
Number of trading days on which fair market value of shares is reported		10 days	10 days
Diamond eagle acquisition \| Minimum
Class of Stock [Line Items]
Share Price		$ 10.00
Diamond eagle acquisition \| Class A common stock
Class of Stock [Line Items]
Common shares, shares authorized		380,000,000	380,000,000
Common shares, par value		$ 0.0001	$ 0.0001
Common shares, shares issued		40,000,000	40,000,000
Common shares, shares outstanding		40,000,000	40,000,000
Temporary Equity, Shares Outstanding		38,475,795	38,427,853
Diamond eagle acquisition \| Class B common stock
Class of Stock [Line Items]
Common shares, shares authorized		20,000,000	20,000,000
Common shares, par value		$ 0.0001	$ 0.0001
Common shares, shares issued		10,000,000	10,000,000
Common shares, shares outstanding		10,000,000	10,000,000

Subsequent Events (Details) - Diamond eagle acquisition - USD ($)	Apr. 23, 2020	Mar. 31, 2020	Dec. 31, 2019
Subsequent Event [Line Items]
Deferred underwriting compensation		$ 14,000,000	$ 14,000,000
Over-allotment
Subsequent Event [Line Items]
Deferred underwriting compensation			$ 14,000,000
P I P E Investment [Member] \| Subsequent Event
Subsequent Event [Line Items]
Deferred underwriting compensation	$ 14,000,000
P I P E Investment [Member] \| Subsequent Event \| Class A common stock
Subsequent Event [Line Items]
Amount paid for redemption of shares	$ 90,172

CONSOLIDATED BALANCE SHEET - USD ($)	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 1,244,266,000		$ 76,533,000
Total current assets	1,451,121,000		261,148,000
Total assets	2,516,137,000		330,725,000
Current liabilities:
Accounts payable			16,618,000
Total current liabilities	269,977,000		255,080,000
Total liabilities	324,849,000		380,305,000
Stockholders' deficit:
Common stock			390,000
Additional paid-in capital	3,395,129,000		949,186,000
Retained earnings	(1,228,901,000)		(998,784,000)
Total stockholders' equity (deficit)	2,191,288,000	$ (101,951,000)	(307,951,000)
Total liabilities and stockholders' equity (deficit)	2,516,137,000		330,725,000
Diamond eagle acquisition
Current assets:
Cash and cash equivalents		157,758	491,225
Prepaid expenses		93,333	319,239
Total current assets		251,091	810,464
Cash and investments held in Trust Account		405,002,234	403,961,209
Total assets		405,253,325	404,771,673
Current liabilities:
Accounts payable			1,493,133
Total current liabilities		1,495,374	1,493,133
Deferred underwriting compensation		14,000,000	14,000,000
Total liabilities		15,495,374	15,493,133
Class A common shares subject to possible redemptions; 38,427,853 shares at approximately $10.00 per share		384,757,950	384,278,530
Stockholders' deficit:
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; none issued and outstanding
Additional paid-in capital		2,210,029	2,689,444
Retained earnings		2,788,820	2,309,409
Total stockholders' equity (deficit)		5,000,001	5,000,010
Total liabilities and stockholders' equity (deficit)		405,253,325	404,771,673
Class A common stock
Stockholders' deficit:
Common stock	35,000		18,000
Class A common stock \| Diamond eagle acquisition
Stockholders' deficit:
Common stock		152	157
Class B common stock
Stockholders' deficit:
Common stock	$ 39,000		0
Class B common stock \| Diamond eagle acquisition
Stockholders' deficit:
Common stock		$ 1,000	$ 1,000

CONSOLIDATED BALANCE SHEET (Parenthetical) - $ / shares	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Preferred shares, par value	$ 0.0001		$ 0.0001
Preferred shares, shares authorized	300,000
Preferred shares, shares issued	0		0
Preferred shares, shares outstanding	0		0
Common shares, par value			$ 0.001	$ 0.001
Common shares, shares authorized			735,000	735,000
Common shares, shares issued			389,610	384,009
Common shares, shares outstanding			389,610	384,009
Class A common stock
Common shares, par value	$ 0.0001		$ 0.0001
Common shares, shares authorized	900,000,000		735,000,000
Common shares, shares issued	354,251,000		184,626,000
Common shares, shares outstanding	354,251,000		184,626,000
Class B common stock
Common shares, par value	$ 0.0001
Common shares, shares authorized	900,000,000
Common shares, shares issued	393,014,000
Common shares, shares outstanding	393,014,000
Diamond eagle acquisition
Preferred shares, par value		$ 0.0001	$ 0.0001
Preferred shares, shares authorized		1,000,000	1,000,000
Preferred shares, shares issued		0	0
Preferred shares, shares outstanding		0	0
Common shares, shares authorized			5,250,000
Diamond eagle acquisition \| Class A common stock
Shares subject to possible redemption		38,475,795	38,427,853
Shares subject to possible redemption, par value per share		$ 10.00	$ 10.00
Common shares, par value		$ 0.0001	$ 0.0001
Common shares, shares authorized		380,000,000	380,000,000
Common shares, shares issued		1,524,205	1,572,147
Common shares, shares outstanding		1,524,205	1,572,147
Diamond eagle acquisition \| Class B common stock
Common shares, par value		$ 0.0001	$ 0.0001
Common shares, shares authorized		20,000,000	20,000,000
Common shares, shares issued		10,000,000	10,000,000
Common shares, shares outstanding		10,000,000	10,000,000

CONSOLIDATED STATEMENT OF OPERATIONS - USD ($)

3 Months Ended

9 Months Ended

Mar. 31, 2019

Mar. 31, 2020

Dec. 31, 2019

General and administrative expenses

$ 675

$ 718,799

$ 1,857,305

Loss from operations

(675)

(718,799)

(1,857,305)

Other income - interest on Trust Account

1,444,499

5,111,208

Loss before income tax provision and loss from equity method investment

(675)

725,700

3,253,903

Income tax expense

246,289

944,494

Net loss attributable to common stockholders

$ (675)

479,411

$ 2,309,409

Diamond eagle acquisition | Class A common stock

Income tax expense

$ 246,289,000

Weighted average number of ordinary shares outstanding

40,000,000

Basic and diluted (in dollars per share)

$ 0.09

Diamond eagle acquisition | Class B common stock

Weighted average number of ordinary shares outstanding

8,750,000

^[1]

10,000,000

10,010,045

Basic and diluted (in dollars per share)

$ (0.04)

$ (0.15)

[1]	This number excludes an aggregate of up to 1,312,500 shares of Class B common stock subject to forfeiture if the over-allotment option is not exercised by the underwriters.

CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - USD ($)	Diamond eagle acquisition Common Stock Class A common stock	Diamond eagle acquisition Common Stock Class B common stock	Diamond eagle acquisition Common Stock	Diamond eagle acquisition Additional Paid-in Capital	Diamond eagle acquisition Accumulated Deficit	Diamond eagle acquisition Class B common stock	Diamond eagle acquisition	Common Stock Class A common stock	Common Stock Class B common stock	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Total
Balance at the beginning at Dec. 31, 2016										$ 22,000	$ 3,998,000	$ (704,274,000)	$ (700,254,000)
Balance at the beginning (in shares) at Dec. 31, 2016										22,291
Increase (Decrease) in Stockholders' Equity
Underwriters' discount and offering expenses											(1,513,000)		(1,513,000)
Net income (loss)												(75,556,000)	(75,556,000)
Balance at the end at Dec. 31, 2017										$ 380,000	661,085,000	(779,830,000)	(118,365,000)
Balance at the end (in shares) at Dec. 31, 2017										379,932
Increase (Decrease) in Stockholders' Equity
Shares issued in Offering, net of issuance costs										$ 1,000	339,000		340,000
Shares issued in Offering, net of issuance costs (in shares)										393
Underwriters' discount and offering expenses											(678,000)		(678,000)
Net income (loss)												(76,220,000)	(76,220,000)
Balance at the end at Dec. 31, 2018										$ 384,000	670,439,000	(856,050,000)	(185,227,000)
Balance at the end (in shares) at Dec. 31, 2018										384,009
Increase (Decrease) in Stockholders' Equity
Net income (loss)													(57,667,000)
Balance at the end at Jun. 30, 2019								$ 19,000			948,603,000	(913,717,000)	34,905,000
Balance at the end (in shares) at Jun. 30, 2019								193,265
Balance at the beginning at Dec. 31, 2018										$ 384,000	670,439,000	(856,050,000)	(185,227,000)
Balance at the beginning (in shares) at Dec. 31, 2018										384,009
Increase (Decrease) in Stockholders' Equity
Shares issued in Offering, net of issuance costs										$ 2,000	437,000		439,000
Shares issued in Offering, net of issuance costs (in shares)										1,906
Underwriters' discount and offering expenses											(992,000)		(992,000)
Sale of 6,333,334 Private Placement Warrants at $1.50 per warrant											438,000		438,000
Net income (loss)						$ 1,453,333						(142,734,000)	(142,734,000)
Balance at the end at Dec. 31, 2019	$ 157	$ 1,000	$ 5,000,010	$ 2,689,444	$ 2,309,409		$ 5,000,010			$ 390,000	690,443,000	(998,784,000)	(307,951,000)
Balance at the end (in shares) at Dec. 31, 2019	1,572,147	10,000,000								389,610
Balance at the beginning at Jan. 01, 2019								$ 19,000			932,081,000	(856,050,000)	76,050,000
Balance at the beginning (in shares) at Jan. 01, 2019								190,812
Increase (Decrease) in Stockholders' Equity
Net income (loss)												(29,554,000)	(29,554,000)
Balance at the end at Mar. 31, 2019		$ 1,006		23,994	(675)		24,325	$ 19,000			944,283,000	(885,604,000)	58,698,000
Balance at the end (in shares) at Mar. 31, 2019		10,062,500						191,940
Balance at the beginning at Mar. 26, 2019	$ 0	$ 0	0	0	0		0
Balance at the beginning (in shares) at Mar. 26, 2019	0	0
Increase (Decrease) in Stockholders' Equity
Shares issued in Offering, net of issuance costs		$ 1,006		23,994			25,000
Shares issued in Offering, net of issuance costs (in shares)		10,062,500
Net income (loss)					(675)		(675)
Balance at the end at Mar. 31, 2019		$ 1,006		23,994	(675)		24,325	$ 19,000			944,283,000	(885,604,000)	58,698,000
Balance at the end (in shares) at Mar. 31, 2019		10,062,500						191,940
Balance at the beginning at Mar. 26, 2019	$ 0	$ 0	0	0	0		0
Balance at the beginning (in shares) at Mar. 26, 2019	0	0
Increase (Decrease) in Stockholders' Equity
Shares issued in Offering, net of issuance costs		$ 1,006	25,000	23,994
Shares issued in Offering, net of issuance costs (in shares)		10,062,500
Sale of Units to the public at $10.00 per unit	$ 4,000		400,000,000	399,996,000
Sale of Units to the public at $10.00 per unit (in shares)	40,000,000
Underwriters' discount and offering expenses			(22,555,869)	(22,555,869)
Sale of 6,333,334 Private Placement Warrants at $1.50 per warrant			9,500,000	9,500,000
Forfeiture of Class B shares by initial shareholders		$ (6)		6
Forfeiture of Class B shares by initial shareholders (in shares)		(62,500)
Adjustment to ordinary common stock subject to redemption	$ (3,843)		(384,278,530)	(384,274,687)
Adjustment to ordinary common stock subject to redemption (in Shares)	(38,427,853)
Net income (loss)			2,309,409		2,309,409		2,309,409
Balance at the end at Dec. 31, 2019	$ 157	$ 1,000	5,000,010	2,689,444	2,309,409		5,000,010			$ 390,000	690,443,000	(998,784,000)	(307,951,000)
Balance at the end (in shares) at Dec. 31, 2019	1,572,147	10,000,000								389,610
Balance at the beginning at Mar. 31, 2019		$ 1,006		23,994	(675)		24,325	$ 19,000			944,283,000	(885,604,000)	58,698,000
Balance at the beginning (in shares) at Mar. 31, 2019		10,062,500						191,940
Increase (Decrease) in Stockholders' Equity
Shares issued in Offering, net of issuance costs											438,000		438,000
Shares issued in Offering, net of issuance costs (in shares)								674
Net income (loss)												(28,113,000)	(28,113,000)
Balance at the end at Jun. 30, 2019								$ 19,000			948,603,000	(913,717,000)	34,905,000
Balance at the end (in shares) at Jun. 30, 2019								193,265
Balance at the beginning at Dec. 31, 2019	$ 157	$ 1,000	5,000,010	2,689,444	2,309,409		5,000,010			$ 390,000	690,443,000	(998,784,000)	(307,951,000)
Balance at the beginning (in shares) at Dec. 31, 2019	1,572,147	10,000,000								389,610
Increase (Decrease) in Stockholders' Equity
Adjustment to ordinary common stock subject to redemption	$ (5)			(479,415)			(479,420)
Adjustment to ordinary common stock subject to redemption (in Shares)	(47,942)
Net income (loss)					479,411		479,411
Balance at the end at Mar. 31, 2020	$ 152	$ 1,000		2,210,029	2,788,820		5,000,001	$ 18,000			965,495,000	(1,067,464,000)	(101,951,000)
Balance at the end (in shares) at Mar. 31, 2020	1,524,205	10,000,000						186,608
Balance at the beginning at Dec. 31, 2019	$ 157	$ 1,000	$ 5,000,010	2,689,444	2,309,409		5,000,010			$ 390,000	690,443,000	(998,784,000)	(307,951,000)
Balance at the beginning (in shares) at Dec. 31, 2019	1,572,147	10,000,000								389,610
Increase (Decrease) in Stockholders' Equity
Net income (loss)													(230,117,000)
Balance at the end at Jun. 30, 2020								$ 35,000	$ 39,000		3,395,129,000	(1,228,901,000)	2,191,288,000
Balance at the end (in shares) at Jun. 30, 2020								354,251	393,014
Balance at the beginning at Jan. 01, 2020								$ 18,000			949,186,000	(998,784,000)	(49,580,000)
Balance at the beginning (in shares) at Jan. 01, 2020								184,626
Increase (Decrease) in Stockholders' Equity
Net income (loss)												(68,680,000)	(68,680,000)
Balance at the end at Mar. 31, 2020	$ 152	$ 1,000		$ 2,210,029	$ 2,788,820		$ 5,000,001	$ 18,000			965,495,000	(1,067,464,000)	(101,951,000)
Balance at the end (in shares) at Mar. 31, 2020	1,524,205	10,000,000						186,608
Increase (Decrease) in Stockholders' Equity
Shares issued in Offering, net of issuance costs								$ 2,000			620,798,000		620,800,000
Shares issued in Offering, net of issuance costs (in shares)								16,000
Net income (loss)												(161,437,000)	(161,437,000)
Balance at the end at Jun. 30, 2020								$ 35,000	$ 39,000		$ 3,395,129,000	$ (1,228,901,000)	$ 2,191,288,000
Balance at the end (in shares) at Jun. 30, 2020								354,251	393,014

CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (Parenthetical) - Diamond eagle acquisition - $ / shares	Mar. 31, 2020	Dec. 31, 2019	May 10, 2019	Mar. 31, 2019
Share price		$ 10.00	$ 12.00
Number of warrants issued		6,333,334
Price per warrant	$ 1.50	$ 1.50
Common Stock \| Class A common stock
Share price		10.00
Common Stock \| Class B common stock
Share price		$ 0.002		$ 0.002

CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($)			3 Months Ended	6 Months Ended	9 Months Ended	12 Months Ended
CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($)	Dec. 31, 2019	Mar. 31, 2019	Mar. 31, 2020	Jun. 30, 2020	Dec. 31, 2019	Dec. 31, 2019
Cash flows from operating activities:
Net income (loss)				$ (230,117,000)		$ (142,734,000)
Changes in operating assets and liabilities:
Net cash flows used in operating activities				(134,971,000)		(78,880,000)
Cash flows from investing activities:
Net cash flows used in investing activities				(198,652,000)		(42,271,000)
Cash Flows from Financing Activities:
Proceeds from issuance of Class A common stock, net of issuance costs				620,800,000		439,000
Payment of offering costs				(11,564,000)
Net cash flows provided by financing activities				1,501,100,000		79,776,000
Net increase (decrease) in cash, cash equivalents and restricted cash				1,167,733,000
Net Increase (Decrease) in Cash						(41,375,000)
Cash and cash equivalents at the beginning of period			$ 76,533,000	76,533,000		117,908,000
Cash and cash equivalents, end of period	$ 76,533,000			1,244,266,000	$ 76,533,000	76,533,000
Supplemental disclosure of non-cash financing activities:
Acquisition of state licenses included in accounts payable and accrued expenses						1,000,000
Diamond eagle acquisition
Cash flows from operating activities:
Net income (loss)		$ (675)	479,411		2,309,409
Adjustments to reconcile net income to net cash used in operating activities:
Trust income reinvested in Trust Account		0	(1,444,499)		(5,111,208)
Changes in operating assets and liabilities:
Prepaid expenses					(319,239)
Accounts payable					1,268,808
Net cash flows used in operating activities		0	(736,942)		(1,852,230)
Cash flows from investing activities:
Principal deposited in Trust Account					(400,000,000)
Cash withdrawn from Trust account to pay taxes		0	403,475		1,149,999
Net cash flows used in investing activities		0	403,475		(398,850,001)
Cash Flows from Financing Activities:
Proceeds from promissory note - related party			300,000		60,675	300,000
Repayment of promissory note - related party					(60,675)
Proceeds from private placement of warrants					9,500,000
Proceeds from issuance of Class A common stock, net of issuance costs					400,000,000
Payment of underwriters' discount					(8,000,000)
Payment of offering costs	(22,555,869)		(22,555,870)		(306,544)
Net cash flows provided by financing activities					401,193,456
Net increase (decrease) in cash, cash equivalents and restricted cash		0	(333,467)		491,225
Cash and cash equivalents at the beginning of period		0	491,225	$ 491,225	0
Cash and cash equivalents, end of period	$ 491,225	0	157,758		491,225	$ 491,225
Supplemental disclosure of cash flow information:
Cash paid for taxes		0			1,149,999
Supplemental disclosure of non-cash financing activities:
Deferred underwriting compensation					14,000,000
Class A common stock subject to possible redemption		0	$ 479,420		384,278,530
Offering costs paid by sponsor in exchange for founder shares (Class B Common Stock)		25,000			25,000
Acquisition of state licenses included in accounts payable and accrued expenses		$ 1,733			$ 224,325

Organization and Business Operations	3 Months Ended	6 Months Ended	12 Months Ended
Organization and Business Operations	Mar. 31, 2020	Jun. 30, 2020	Dec. 31, 2019
Organization and Business Operations		1.Description of Business DraftKings Inc., a Nevada corporation (the “Company”, “DraftKings”, “we” or “us”), 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 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 us, whereby we 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) we changed our name to “DraftKings Inc.,” (iii) we acquired DraftKings Inc., a Delaware corporation, (“Old DK”) by way of a merger and (iv) we acquired all of the issued and outstanding share capital of SBTech (Global) Limited (“SBTech”). Upon consummation of the foregoing 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 iGaming products. The Company’s business-to-business (“B2B”) segment is involved in the design and development of sports betting and casino gaming software for 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. The U.S. jurisdictions with statutes legalizing statewide online sports betting as of June 30, 2020 are Colorado, Illinois, Indiana, Iowa, Michigan, Nevada, New Hampshire, New Jersey, Oregon, Pennsylvania, Puerto Rico, Rhode Island, Tennessee, Virginia, Washington, D.C and West Virginia. The jurisdictions with statutes legalizing sports betting at certain land-based retail locations are Arkansas, Colorado, Delaware, Illinois, Indiana, Iowa, Michigan, Mississippi, Montana, Nevada, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Puerto Rico, Rhode Island, Washington, Washington, D.C and West Virginia. The jurisdictions with statutes legalizing online casinos are Michigan, New Jersey, Pennsylvania and West Virginia. Several of the aforementioned jurisdictions have enacted laws authorizing sports wagering online or in retail locations, but such operations have not yet begun. As of June 30, 2020, the Company operates online sports betting in Colorado, Indiana, Iowa, New Hampshire, New Jersey, Oregon (B2B), Pennsylvania, and West Virginia, has retail sportsbooks in Colorado, Iowa, Mississippi, New Jersey and New York and has online casino products in New Jersey and Pennsylvania. The Company also has arrangements in place with land-based casinos to expand operations into additional states upon the passing of the appropriate laws and regulations and the receipt of appropriate licenses. Recently, the novel coronavirus (“COVID-19”) has adversely impacted global commercial activity and contributed to significant declines and volatility in financial markets. The COVID-19 pandemic is creating disruption in global supply chains and adversely impacting many industries. COVID-19 could have a continued material adverse impact on economic and market conditions and trigger a period of continued global economic slowdown. The rapid development and fluidity of this situation precludes any prediction as to the ultimate impact of COVID-19. Nevertheless, COVID-19 presents material uncertainty and risk with respect to the Company, its performance, and its financial results and could adversely affect the Company’s financial results. The direct impact of COVID-19 on the business of DraftKings beyond disruptions to normal business operations in several offices primarily results from the suspension and cancellation of sports seasons and sporting events. Typically, during the March to June time periods, DraftKings would have significant user interest and activity in its Sportsbook and DFS product offerings for Major League Baseball, European Soccer competitions, the NBA regular season and playoffs, the NCAA college basketball tournament, the Masters golf tournament, the NHL regular season and playoffs and the French Open grand slam tennis tournament. All of the aforementioned sports seasons and sporting events were suspended, although many plan to return later in 2020. The suspension of sports seasons and sporting events have reduced customers’ use of, and spending on, the Company’s Sportsbook and DFS product offerings, and has caused the Company to issue refunds for canceled events. Additionally, some retail casinos where the Company has branded sportsbooks and DFS remain closed or have reduced their capacity. The Company’s revenues vary based on sports seasons and sporting events, and the Company may not generate as much revenue as it would have without the cancellation or suspensions as a result of COVID-19. However, the strong performance of the Company’s product offerings that do not rely on sports seasons and sporting events, such as iGaming, has partially offset this adverse impact on revenue. DraftKings is also innovating to generate more content that does not rely on sports seasons and sporting events, for example, products that permit wagering and contests on events such as eSports, simulated NASCAR and League of Legends. A significant or prolonged decrease in consumer spending on entertainment or leisure activities would likely adversely affect demand for the Company’s product offerings, reducing cash flows and revenues, and thereby materially harming our business, financial condition and results of operations. Finally, the Company has business continuity programs in place to ensure that employees are safe and that the business continues to function while its employees work remotely.
Diamond eagle acquisition
Organization and Business Operations	1. Organization and Business Operations Incorporation Diamond Eagle Acquisition Corp., our predecessor, was incorporated as a Delaware corporation on March 27, 2019. Subsidiaries In connection with the business combination (the “Business Combination”) with DraftKings Inc., a Delaware corporation (“Old DK” or “DK”), and SBTech (Global) Limited, a company limited by shares, incorporated in Gibraltar and continued as a company under the Isle of Man Companies Act 2006, with registration number 014119V (“SBTech” or “SBT”), the Company formed a wholly-owned subsidiary, DEAC Merger Sub Inc., which was incorporated in Delaware on December 9, 2019 (“Merger Sub”). Merger Sub did not have any activity as of March 31, 2020. Also in connection with the Business Combination, the Company formed another wholly-owned subsidiary, DEAC NV Merger Corp. (“DEAC Nevada”), which was incorporated in Nevada on November 13, 2019. DEAC Nevada did not have any activity as of March 30, 2020. In connection with the Business Combination, DEAC Nevada changed its name to DraftKings Inc. and, by operation of Rule 12g-3(a) under the Exchange Act of 1934, as amended (the “Exchange Act”), became the successor issuer to DEAC and succeeded to the attributes of DEAC as the registrant, including DEAC’s SEC file number (001-38908) and CIK Code (0001772757). Sponsor The Company’s sponsor is Eagle Equity Partners, LLC, a Delaware limited liability company (the “Sponsor”). Fiscal Year End The Company has selected December 31 as its fiscal year end. Business Purpose The Company was formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or other similar business combination with one or more operating businesses. The Company had neither engaged in any operations nor generated significant revenue through March 31, 2020. Business Combination On December 22, 2019, the Company entered into a business combination agreement (as amended, the “Business Combination Agreement”) with Old DK, SBTech, the shareholders of SBTech (the “SBT Sellers”), Shalom Meckenzie, in his capacity as the SBT Sellers’ Representative, DEAC Nevada and Merger Sub, pursuant to which (i) the Company changed its jurisdiction of incorporation to Nevada by merging with and into DEAC Nevada, with DEAC Nevada surviving the merger (the “reincorporation”), (ii) Merger Sub merged with and into Old DK with Old DK surviving the merger (the “DK Merger”), and (iii) immediately following the DK Merger, New DraftKings (as defined below) acquired all of the issued and outstanding share capital of SBTech. The aggregate value of the consideration paid to Old DK and SBTech shareholders in the Business Combination was approximately $2.7 billion, of which (A) approximately $2.055 billion was paid to (i) the current equityholders of Old DK (the “DK Sellers”) in the form of shares of Class A common stock of New DraftKings (“New DraftKings Class A common stock”), valued at the redemption price for the Company’s public shares in the Business Combination and (ii) holders of vested in-the-money options and warrants exercisable for DK equity in the form of newly issued options and warrants of New DraftKings exercisable for New DraftKings Class A common stock, and (B) approximately €590 million was paid to the SBT Sellers and holders of vested options exercisable for equity of SBT, consisting of (i) €180 million in cash, subject to customary net debt and working capital adjustments as well as certain other specified items (the “Cash Consideration”) payable in respect of the ordinary shares of SBT and 30% of the in-the-money vested options of SBT and (ii) approximately €410 million in shares of New DraftKings Class A common stock, valued at the redemption price for the Company’s public shares in the Business Combination, and in the form of newly issued in-the-money vested options of New DraftKings exercisable for New DraftKings Class A common stock. Outstanding unvested options exercisable for DK or SBT equity (other than cashed-out options of SBT, for which the holders received a portion of the Cash Consideration for such options) converted into options exercisable for shares of New DraftKings Class A common stock. After the execution of the BCA, DK granted restricted stock units to certain of its employees, which converted into restricted stock units denominated in New DraftKings Class A common stock. The Cash Consideration came from the following sources: (1) proceeds available from the Company’s Trust Account, after giving effect to all redemptions; and (2) proceeds from private placements of shares of the Company’s Class A common stock to certain institutional investors immediately prior to the closing of the Business Combination for $304.7 million of proceeds. In addition, in connection with the Business Combination, Jason Robins received shares of Class B common stock of New DraftKings (“New DraftKings Class B common stock”) such that as of immediately following the completion of the Business Combination, Mr. Robins held approximately ninety percent (90%) of the voting power of the capital stock of New DraftKings on a fully-diluted basis. On April 23, 2020, the Company consummated the Business Combination. In connection with the closing of the Business Combination (the “Closing”), DEAC discontinued its existence as a Delaware company by merging with and into DEAC Nevada, with DEAC Nevada surviving the merger as a Nevada corporation (the “reincorporation”). In addition, upon the Closing, Old DK and SBTech became wholly-owned subsidiaries of DEAC Nevada and DEAC Nevada changed its name to DraftKings Inc. (“New DraftKings” or “DraftKings”). References to the “Company” in these notes to the unaudited condensed consolidated financial statements refer to either DEAC before the Business Combination or New DraftKings after the Business Combination, as the context suggests. PIPE Investment and Convertible Notes In connection with satisfying the Minimum Proceeds Condition (as defined in the Business Combination Agreement), the Company entered into subscription agreements (the “Subscription Agreements”), each dated as of December 22, 2019, with certain institutional investors (the “Investors”), pursuant to which, among other things, the Company agreed to issue and sell, in private placements, an aggregate of 30,471,352 shares of Class A common stock for $10.00 per share and an aggregate of 3,000,000 warrants to purchase shares of Class A common stock (the “PIPE Investment”). The warrants have terms identical to New DraftKings’ publicly traded warrants. On and after December 16, 2019, Old DK issued subordinated convertible promissory notes to certain investors in an aggregate principal amount of approximately $109.2 million (the “Convertible Notes”). Pursuant to the terms of the Convertible Notes, the outstanding principal and accrued interest on the Convertible Notes converted immediately prior to the reincorporation into shares of Class A common stock, at a price per share equal to the price per share paid by the Investors in the PIPE Investment, which resulted in the issuance of 11,254,479 shares of Class A common stock on the Closing Date. The PIPE Investment closed immediately prior to the Business Combination on the Closing Date. The shares of Class A common stock issued to the Investors and upon conversion of the Convertible Notes, were converted into shares of DraftKings’ Class A common stock upon consummation of the reincorporation and the Business Combination. The shares issued to the Investors in the PIPE Investment and to the holders of Convertible Notes on the Closing Date were issued pursuant to and in accordance with the exemption from registration under the Securities Act, under Section 4(a)(2) and/or Regulation D promulgated under the Securities Act. For more information, please see the Registration Statement on Form S-1, originally filed by DEAC NV on April 15, 2020. Financing The registration statement for the Company’s initial public offering (the “Public Offering”) (as described in Note 3) was declared effective by the United States Securities and Exchange Commission (the “SEC”) on May 10, 2019. The Company consummated the Public Offering on May 14, 2019, and, simultaneously with the closing of the Public Offering, the Sponsor and Harry E. Sloan purchased an aggregate of 6,333,334 warrants in a private placement (as described in Note 4) for a total purchase price of approximately $9,500,000. The closing of the Public Offering included a partial exercise (5,000,000 units) of the over-allotment option granted to the underwriters. Upon the closing of the Public Offering and the private placement, $400,000,000 was placed in a Trust Account with Continental Stock Transfer & Trust Company acting as trustee (the “Trust Account”). Trust Account The proceeds held in the Trust Account were invested in permitted United States “government securities” within the meaning of Section 2(a)(16) of the Investment Company Act of 1940, as amended (the “Investment Company Act”), having a maturity of 185 days or less or in money market funds meeting certain conditions under Rule 2a‑7 promulgated under the Investment Company Act that invest only in direct U.S. government treasury obligations. The Company’s amended and restated certificate of incorporation (the “Charter”) as of prior to the Business Combination provided that, other than the withdrawal of interest earned on the funds that may be released to the Company to fund working capital requirements (subject to an annual limit of $250,000) and/or to pay taxes, none of the funds held in the Trust Account will be released until the earlier of: (i) the completion of an initial business combination; (ii) the redemption of any of the shares of Class A common stock, par value $0.0001 per share (the “Class A Common Stock”) included in the Units sold in the Public Offering properly submitted in connection with a stockholder vote to amend the Charter to modify the substance or timing of the Company’s obligation to redeem 100% of the common stock included in the Units being sold in the Public Offering if the Company does not complete an initial business combination within 24 months from the closing of the Public Offering or with respect to any other material provisions relating to stockholders’ rights or pre-initial business combination activity or (iii) the redemption of 100% of the shares of Class A Common Stock included in the Units sold in the Public Offering if the Company was unable to complete an initial business combination within 24 months from the closing of the Public Offering. In connection with the Closing, the Company withdrew $404,981,569 of funds from the Trust Account to partially fund the Business Combination, pay transaction costs associated therewith and fund participant share redemptions. Emerging Growth Company Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act of 1933, as amended (the “Securities Act”) registration statement declared effective or do not have a class of securities registered under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such an election to opt out is irrevocable. We have elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies, we, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s financial statements with another public company which is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accountant standards used.		NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 1. Organization and Business Operations Incorporation Diamond Eagle Acquisition Corp. (the “Company”) was incorporated as a Delaware corporation on March 27, 2019. Subsidiaries In connection with the proposed business combination (the "Business Combination") with DraftKings Inc. ("DK") and SBTech (Global) Limited ("SBT"), the Company formed a wholly-owned subsidiary, DEAC Merger Sub Inc., which was incorporated in Delaware on December 9, 2019 ("Merger Sub"). Merger Sub did not have any activity as of December 31, 2019. Also in connection with an initial business combination, the Company formed another wholly-owned subsidiary, DEAC NV Merger Corp. ("DEAC Nevada"), which was incorporated in Nevada on November 13, 2019. DEAC Nevada did not have any activity as of December 31, 2019. Sponsor The Company’s sponsor is Eagle Equity Partners, LLC, a Delaware limited liability company (the “Sponsor”). Fiscal Year End The Company has selected December 31 as its fiscal year end. Business Purpose The Company was formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or other similar business combination with one or more operating businesses that it has not yet selected. Financing The registration statement for the Company's initial public offering (the "Public Offering") (as described in Note 3) was declared effective by the United States Securities and Exchange Commission (the "SEC") on May 10, 2019. The Company consummated the Public Offering on May 14, 2019, and, simultaneously with the closing of the Public Offering, the Sponsor and Harry E. Sloan purchased an aggregate of 6,333,334 warrants in a private placement (as described in Note 4) for a total purchase price of approximately $9,500,000. The closing of the Public Offering included a partial exercise (5,000,000 units) of the over-allotment option granted to the underwriters. Upon the closing of the Public Offering and the private placement, $400,000,000 was placed in a Trust Account with Continental Stock Transfer & Trust Company acting as trustee (the "Trust Account"). Trust Account The Trust Account can be invested in permitted United States “government securities” within the meaning of Section 2(a) (16) of the Investment Company Act of 1940, as amended (the “Investment Company Act”), having a maturity of 185 days or less or in money market funds meeting certain conditions under Rule 2a‑7 promulgated under the Investment Company Act that invest only in direct U.S. government treasury obligations. The Company’s amended and restated certificate of incorporation (the “Charter”) provides that, other than the withdrawal of interest to pay income taxes, and the withdrawal of interest to fund the Company's working capital requirements (subject to an annual limit of $250,000) and/or to pay taxes, if any, none of the funds held in Trust will be released until the earlier of: (i) the completion of an initial business combination; (ii) the redemption of any of the shares of Class A common stock included in the units sold in the Public Offering (the “Units”) properly tendered in connection with a stockholder vote to amend the Company’s Charter to modify the substance or timing of the Company’s obligation to redeem 100% of the shares of Class A common stock included in the Units if the Company does not complete an initial business combination within 24 months from the closing of the Public Offering (May 14, 2021) or (iii) the redemption of 100% of the shares of Class A common stock included in the Units if the Company is unable to complete an initial business combination by May 14, 2021. Cash and Cash Equivalents The Company considers all short-term investments with an original maturity of three months or less when purchased to be cash equivalents. Business Combination An initial business combination is subject to the following size, focus and stockholder approval provisions: Size/Control - An initial business combination must occur with one or more target businesses that together have an aggregate fair market value of at least 80% of the assets held in the Trust Account (excluding the deferred underwriting commissions and taxes payable on the income earned on the Trust Account) at the time of the agreement to enter into an initial business combination. The Company will not complete an initial business combination unless it acquires a controlling interest in a target company or is otherwise not required to register as an investment company under the Investment Company Act. Tender Offer/Stockholder Approval -The Company, after signing a definitive agreement for an initial business combination, will either (i) seek stockholder approval of an initial business combination at a meeting called for such purpose in connection with which stockholders may seek to redeem their shares of Class A common stock, regardless of whether they vote for or against an initial business combination, for cash equal to their pro rata share of the aggregate amount then on deposit in the Trust Account calculated as of two business days prior to the consummation of an initial business combination, including interest but less income taxes payable, or (ii) provide stockholders with the opportunity to sell their shares of Class A common stock to the Company by means of a tender offer (and thereby avoid the need for a stockholder vote) for an amount in cash equal to their pro rata share of the aggregate amount then on deposit in the Trust Account calculated as of two business days prior to commencement of the tender offer, including interest but less income taxes payable. The decision as to whether the Company will seek stockholder approval of an initial business combination or will allow stockholders to sell their shares of Class A common stock in a tender offer will be made by the Company, solely in its discretion, and will be based on a variety of factors such as the timing of the transaction and whether the terms of the transaction would otherwise require the Company to seek stockholder approval. If the Company seeks stockholder approval, it will complete its initial business combination only if a majority of the outstanding shares of common stock voted are voted in favor of an initial business combination. However, in no event will the Company redeem its public shares in an amount that would cause its net tangible assets to be less than $5,000,001. In such case, the Company would not proceed with the redemption of its public shares and the related Business Combination, and instead may search for an alternate business combination. If the Company holds a stockholder vote in connection with an initial business combination, a public stockholder will have the right to redeem its shares of Class A common stock for an amount in cash equal to its pro rata share of the aggregate amount then on deposit in the Trust Account calculated as of two business days prior to the consummation of the initial business combination, including interest but less income taxes payable. As a result, such shares of Class A common stock have been recorded at redemption amount and classified as temporary equity, in accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 480, “Distinguishing Liabilities from Equity.” Going Concern and Liquidity The Company has until May 14, 2021 to complete its initial business combination. If the Company does not complete an initial business combination within this period of time, it shall (i) cease all operations except for the purpose of winding up, (ii) as promptly as reasonably possible but not more than ten business days thereafter, redeem the public shares, at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account, including interest earned on the funds held in the Trust Account and not previously released to us to fund our working capital requirements (subject to an annual limit of $250,000) (less taxes payable and up to $100,000 of interest to pay dissolution expenses), divided by the number of then outstanding public shares, which redemption will completely extinguish public stockholders' rights as stockholders (including the right to receive further liquidation distributions, if any), and (iii) as promptly as reasonably possible following such redemption, subject to the approval of our remaining stockholders and our board of directors, liquidate and dissolve, subject in the case of clauses (ii) and (iii) to our obligations under Delaware law to provide for claims of creditors and in all cases subject to the other requirements of applicable law. The Sponsor, Harry E. Sloan and the Company’s executive officers and directors (the “initial stockholders”) have entered into letter agreements with the Company, pursuant to which they have waived their rights to participate in any redemption with respect to their Founder Shares (as defined below); however, if the initial stockholders or any of the Company’s officers, directors or affiliates acquire shares of Class A common stock in or after the Public Offering, they will be entitled to a pro rata share of the Trust Account upon the Company’s redemption or liquidation in the event the Company does not complete an initial business combination within the required time period. In the event of such distribution, it is possible that the per share value of the residual assets remaining available for distribution (including Trust Account assets) will be less than the initial public offering price per Unit in the Public Offering. As of December 31, 2019, the Company had $491,225 in cash and a working capital deficit of $682,669. In connection with the Company’s assessment of going concern considerations in accordance with ASU 2014-15, “Disclosures of Uncertainties about an Entity’s Ability to Continue as a Going Concern” as of December 31, 2019, the Company does not have sufficient liquidity to meet its current obligations. However, management has determined that the Company has access to funds from the Sponsor entity, in the form of Working Capital Loans, that are sufficient to fund the working capital needs of the Company until the earlier of the consummation of an initial business combination or a minimum one year from the date of issuance of these consolidated financial statements.

Significant Accounting Policies

3 Months Ended

6 Months Ended

12 Months Ended

Mar. 31, 2020

Jun. 30, 2020

Dec. 31, 2019

2.Summary of Significant Accounting Policies and Practices

Basis of Presentation and Principles of Consolidation

The accompanying unaudited condensed consolidated financial statements include the accounts and operations of the Company. All intercompany accounts and transactions have been eliminated.

Comprehensive Income (Loss)

Foreign Currency

Use of Estimates

Going Concern

Emerging Growth Company

Concentrations of Credit Risk

Acquisitions

Cash and cash equivalents

Cash Reserved for Users

Receivables Reserved for Users

Accounts Receivables

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

The Company’s intangible assets consist of Developed Technology, Customer Relationships, Internally-Developed Software, Gaming Licenses and Trademarks and Tradenames.

Developed Technology

Customer Relationships

Internally Developed Software

Gaming Licenses

Trademarks and Tradenames

Goodwill

Impairment of Long-Lived Assets

Equity Method Investment

Leases

Liabilities to Users

Revenue Recognition

The Company determines revenue recognition through the following steps:

· Identifying the contract, or contracts, with the customer;

· Identifying the performance obligations in the contract;

· Determining the transaction price;

· Allocating the transaction price to performance obligations in the contract; and

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

Online Gaming

Gaming software

Transaction Price Considerations

Variable Consideration

Allocation of transaction price to performance obligations

Certain costs to obtain or fulfill contracts

Contract balances

Cost of Revenue

Sales and Marketing

Product and Technology

General and Administrative

Stock-based Compensation

Income Taxes

Fair Value Measurements

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

Earnings (loss) per share

Recently Adopted Accounting Pronouncements

Recent Accounting Pronouncements Not Yet Adopted

2. Summary of Significant Accounting Policies and Practices

Basis of Presentation and Principles of Consolidation

Going Concern

Emerging Growth Company

Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies, but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period, which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s consolidated financial statements with another public company which is neither an emerging growth company nor an emerging growth company, which has opted out of using the extended transition period, difficult or impossible because of the potential differences in accounting standards used.

Use of Estimates

Acquisitions

The Company accounts for business combinations under the acquisition method of accounting, in accordance with Accounting Standards Codification (“ASC”) Topic 805, Business Combinations, which requires assets acquired and liabilities assumed to be recognized at their fair values on the acquisition date. Any excess of the fair value of purchase consideration over 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 involves management making significant estimates and assumptions.

Cash

Cash includes highly liquid checking and instant access internet banking accounts which are owned by the Company.

Cash Reserved for Users

Receivables Reserved for Users

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

User Relationships

Internally Developed Software

State Licenses

Goodwill

Impairment of Long-Lived Assets

Equity Method Investment

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, dividends received, capital contributions and distributions and impairment losses. The Company performs a qualitative assessment quarterly and recognizes an impairment if there are sufficient indicators that the fair value of the investment is less than carrying value.

Deposits

Liabilities to Users

Concentrations of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of operating cash and cash reserved for users. The Company maintains cash and cash reserves for users primarily across five financial institutions; however, the vast majority is held with one financial institution within separate bank accounts, which management believes to be of a high credit quality, in amounts that exceed federally insured limits. The Company does not believe that it is subject to unusual credit risk beyond the normal credit risk associated with commercial banking relationships.

Leases

The Company accounts for leases under the provisions of ASC Topic 840, Leases, which requires that leases be evaluated and classified as operating or capital leases for financial reporting purposes. The terms used for the evaluation include renewal option periods in instances in which the exercise of the renewal option can be reasonably assured and failure to exercise such option would result in an economic penalty. Leases are classified as capital leases whenever the terms of the lease transfer substantially all of the risks and rewards of ownership to the lessee. All other leases are recorded as operating leases. As of December 31, 2019 and 2018, all of the Company’s leases were operating leases.

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 other long-term liabilities in the consolidated balance sheets.

Revenue Recognition

The Company determines revenue recognition through the following steps:

Identifying the contract, or contracts, with the customer;

Identifying the performance obligations in the contract;

Determining the transaction price;

Allocating the transaction price to performance obligations in the contract; and

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

Transaction Price Considerations

Certain costs to obtain or fulfill contracts

Contract balances

Refer to Note 15 for further information, including changes in deferred revenue during the period.

Cost of Revenue

Sales and Marketing

Product and Technology

General and Administrative

Advertising and Promotion Costs

Stock-based Compensation

The Company measures compensation expense for stock options and other stock awards in accordance with ASC Topic 718, Compensation — Stock Compensation. Stock-based compensation is measured at fair value on the grant date and recognized as compensation expense over the requisite service period. Generally, the Company issues stock options to employees with service-based, market based, 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. For awards with performance-based vesting conditions, the Company recognizes compensation cost on a tranche- by tranche basis (the accelerated attribution method).

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 the financial statements and tax bases 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 provision. 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.

Fair Value Measurements

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

Earnings (loss) per share

Recently Adopted Accounting Pronouncements

Recent Accounting Pronouncements Not Yet Adopted

2. Significant Accounting Policies

Basis of Presentation

Net Income (Loss) Per Share

Concentration of Credit Risk

Fair Value of Financial Instruments

Use of Estimates

Offering Costs

Income Taxes

Recent Accounting Pronouncements

2. Significant Accounting Policies

Basis of Presentation

Net Income (Loss) Per Share

Emerging Growth Company

Concentration of Credit Risk

Fair Value of Financial Instruments

The fair value of the Company’s assets and liabilities, which qualify as financial instruments under FASB ASC 820, “Fair Value Measurements and Disclosures,” approximates the carrying amounts represented in the consolidated balance sheet with the exception of investments in Trust, as they are carried at amortized cost.

Use of Estimates

Offering Costs

Redeemable Shares

Accordingly, at December 31, 2019, 38,427,853 shares of the 40,000,000 shares of Class A common stock included in the Units were classified outside of permanent equity.

Income Taxes

Recent Accounting Pronouncements

Public Offering	3 Months Ended	12 Months Ended
Public Offering	Mar. 31, 2020	Dec. 31, 2019
Diamond eagle acquisition
Public Offering	3. Public Offering Public Units In the Public Offering, which closed May 14, 2019, the Company sold 40,000,000 Units at a price of $10.00 per Unit. Each Unit consists of one share of Class A Common Stock and one-third of one redeemable warrant (each whole warrant, a “Warrant”). Each whole Warrant entitles the holder to purchase one share of Class A Common Stock at a price of $11.50 per share. Each Warrant will become exercisable on the later of 30 days after the completion of our initial business combination and 12 months from the closing of the Public Offering. The exercise price and number of shares of Class A Common Stock issuable upon exercise of the Warrants may be adjusted in certain circumstances including in the event of a stock dividend, or recapitalization, reorganization, merger or consolidation. The Company granted the underwriters a 45‑day option to purchase up to 5,250,000 additional Units to cover any over-allotment, at the Public Offering price less the underwriting discounts and commissions. The Company issued 5,000,000 Units in connection with the underwriters’ partial exercise of the over-allotment option. Underwriting Commissions The Company paid an underwriting discount of $8,000,000 ($0.20 per Unit sold) to the underwriters at the closing of the Public Offering on May 14, 2019, with an additional fee (“Deferred Discount”) of $14,000,000 ($0.35 per Unit sold) payable upon the Company’s completion of an initial business combination. The Deferred Discount becomes payable to the underwriters from the amounts held in the Trust Account solely in connection with the closing of its initial business combination. Subsequent to March 31, 2020, in connection with the consummation of the Business Combination, the Company paid the Deferred Discount in full.	3. Public Offering On May 14, 2019, the Company sold 40,000,000 Units at a price of $10.00 per unit in the Public Offering.Each Unit consists of one share of Class A common stock of the Company, $0.0001 par value per share (the "Public Shares"), and one-third of one warrant to purchase one share of Class A common stock (the “Public Warrants”). The closing of the Public Offering included a partial exercise (5,000,000 Units) of the overallotment option granted to the underwriters. Each whole Public Warrant entitles the holder to purchase one share of Class A common stock at a price of $11.50 per share. No fractional shares will be issued upon exercise of the Public Warrants. If, upon exercise of the Public Warrants, a holder would be entitled to receive a fractional interest in a share, the Company will, upon exercise, round down to the nearest whole number the number of shares of Class A common stock to be issued to the Public Warrant holder. Each Public Warrant will become exercisable on the later of 30 days after the completion of an initial business combination and 12 months from the closing of the Public Offering. However, if the Company does not complete an initial business combination on or prior to the 24‑month period allotted to complete an initial business combination, the Public Warrants will expire at the end of such period. Under the terms of a warrant agreement between the Company and Continental Stock Transfer & Trust Company, as warrant agent, the Company has agreed to, following the completion of an initial business combination, use its best efforts to file a new registration statement under the Securities Act for the registration of the shares of Class A common stock issuable upon exercise of the Public Warrants. If the Company is unable to deliver registered shares of Class A common stock to the holder upon exercise of Public Warrants issued in connection with the 40,000,000 Units during the exercise period, there will be no net cash settlement of these Public Warrants and the Public Warrants will expire worthless, unless they may be exercised on a cashless basis in the circumstances described in the warrant agreement. The Company granted the underwriters a 45‑day option to purchase up to 5,250,000 additional Units to cover any over-allotments at the Public Offering price less the underwriting discounts and commissions. The Units that were issued in connection with the over-allotment option are identical to the Units issued in the Public Offering. Prior to the Public Offering, the underwriters’ elected to exercise a portion of the over-allotment option for 5,000,000 additional Units for additional gross proceeds of $50 million. The partial exercise resulted in a reduction of 62,500 shares of Class B common stock subject to forfeiture and are considered as forfeited in the accompanying consolidated balance sheet. The Company paid an upfront underwriting discount of $8,000,000 ($0.20 per Unit sold) in the aggregate to the underwriters at the closing of the Public Offering, with an additional fee (the “Deferred Discount”) equal to $14,000,000 ($0.35 per Unit sold) to become payable to the underwriters from the amounts held in the Trust Account solely in the event the Company completes an initial business combination. The underwriters are not entitled to any interest accrued on the Deferred Discount.

Related Party Transactions	3 Months Ended	6 Months Ended	12 Months Ended
Related Party Transactions	Mar. 31, 2020	Jun. 30, 2020	Dec. 31, 2019
Related Party Transaction [Line Items]
Related Party Transactions		14.Related-Party Transactions Media Purchase Agreement (“MPA”) In July 2015, Old DK entered into an MPA with a related party purchaser 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 $15,000 per year, plus an additional contingent commitment of $5,000 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 $15,000 in aggregate through December 31, 2021 ($5,000 per year) and the contingent commitment was removed. If the Company satisfies the $15,000 commitment prior to December 31, 2021, the MPA will expire unless the Company elects to extend the MPA through the next NFL season with no required minimum. The Company recorded expense of $1,241 and $3,400 related to the MPA for the three and six months ended June 30, 2020 and recorded expense of $88 and $2,216 related to the MPA for the three and six months ended June 30, 2019, respectively, in sales and marketing expenses in the condensed consolidated statements of operations. As of June 30, 2020 and December 31, 2019, $1,563 and $2,413, respectively, of MPA is included in accounts payable and accrued expenses in the condensed consolidated balance sheets. Private Placement Agent Old DK entered into an engagement letter with a related party (the “Private Placement Agent”) in August 2019, as amended in December 2019. Pursuant to the engagement letter, the Private Placement Agent has acted as the exclusive financial advisor to Old DK, and Old DK agreed to pay certain acquisition and financing fees in connection with the Business Combination with SBTech and DEAC. As of the six months ended June 30, 2020 and June 30, 2019 Old DK incurred $12,349 and $0, respectively, of fees with the Private Placement Agent. During the three months ended June 30, 2020 and June 30, 2019, Old DK incurred $11,748 and $0, respectively. Receivables from Equity Method Investment The Company provides office space and general operational support to DKFS, LLC, an equity-method investment. The operational support is primarily general and administrative support services. As of June 30, 2020, and December 31, 2019, the Company had $1,080 and $959, respectively, of receivables from the entity related to these services, which are included within current assets in the condensed consolidated balance sheets. Transactions with a Shareholder and his Immediate Family Members The Business Combination Agreement requires payment to a shareholder in the event certain SBTech accounts receivable are collected. As of June 30, 2020, the Company had a $1,593 payable to the shareholder. In addition, the Company had sales to an entity related to an immediate family member of the shareholder during the three and six months ended June 30, 2020 and had an associated accounts receivable balance of $579 as of June 30, 2020. There were no related party transactions with the shareholder or their immediate family members for the three or six months ended June 30, 2019 and no related accounts receivable balance as of December 31, 2019.	12. Related-Party Transactions Media Purchase Agreement (“MPA”) In July 2015, the Company entered into a MPA with a related party purchaser 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 $15,000 per year plus an additional contingent commitment of $5,000 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 $15,000 in aggregate through December 31, 2021 ($5,000 per year) and the contingent commitment was removed. If the Company satisfies the $15,000 commitment prior to December 31, 2021, the MPA will expire unless the Company elects to extend the MPA through the next NFL season with no required minimum. The Company recorded expense of $8,411 and $23,313 related to the MPA for the years ended December 31, 2019 and 2018, respectively, in sales and marketing expenses in the consolidated statements of operations. As of December 31, 2019, and 2018, $2,413 and $428, respectively, of MPA contractual obligations were unpaid and included in accounts payable and accrued expenses in the consolidated balance sheets. Future minimum obligations under the MPA are included in the other contractual obligations table in Note 13. Private Placement Agent In March 2015, the Company entered into an engagement letter with a related party (the “Private Placement Agent”), pursuant to which the related party served as a private placement agent for DraftKings in connection with DraftKings’ Series E and Series E‑1 preferred stock financings. The engagement letter terminated in June 2018. Of the Company’s Series E‑1 redeemable convertible preferred stock issued and outstanding, $119,752 and $119,427 as of December 31, 2019 and 2018, respectively, is held by the related party. Redeemable convertible preferred stock is discussed in Note 8. In connection with the Company’s Series E‑1 redeemable convertible preferred stock issuance, $2,066 of fees were incurred during the year ended December 31, 2017 and $0 in fees were incurred during the years ended December 31, 2019 and 2018. The 2017 fees are accreted ratably over the expected life of Series E‑1. These fees are presented in the Series E‑1 redeemable convertible preferred stock in the consolidated balance sheets. The Company also entered into an engagement letter in August 2019, and amended in December 2019, with the Private Placement Agent. Pursuant to the engagement letter, the Private Placement Agent has acted as the exclusive financial advisor to DraftKings, and the Company has agreed to pay certain acquisition and financing fees in connection with potential transactions. Refer to Note 7 for a description of the financing fee incurred in 2019. Receivables from Equity Method Investment The Company provides office space and general overhead support to DKFS, LLC, an equity-method affiliate. The overhead support relates to rent, utilities and general and administrative support services. As of December 31, 2019, the Company had $959 of receivables from the entity related to these services and is included within current assets.
Diamond eagle acquisition
Related Party Transaction [Line Items]
Related Party Transactions	4. Related Party Transactions Founder Shares On March 28, 2019, the Sponsor received 10,062,500 shares of Class B common stock (the “Founder Shares”) in exchange for a capital contribution of $25,000, or approximately $0.002 per share. The Founder Shares are identical to the shares of Class A Common Stock included in the Units sold in the Public Offering except that the Founder Shares are subject to certain transfer restrictions, as described in more detail below. On April 10, 2019, the Sponsor transferred 4,930,625 Founder Shares to Harry E. Sloan (together with the Sponsor, the “initial stockholders”) for a purchase price of $12,250 (the same per-share price initially paid by the Sponsor), resulting in the Sponsor holding 5,131,875 Founder Shares. On May 10, 2019, the Sponsor and Mr. Sloan each forfeited at no cost 31,875 and 30,625 Founder Shares, respectively, to the Company in connection with the election by the underwriters of the Public Offering to exercise their over-allotment option in part and not in full, resulting in an aggregate of 10,000,000 Founder Shares outstanding. On December 31, 2019, the Sponsor transferred an aggregate of 80,000 Founder Shares to each of the Company's independent directors. The initial stockholders and the Company's independent directors agreed not to transfer, assign or sell any of their Founder Shares until the earlier of (A) one year after the completion of the Company’s initial business combination, or earlier if, subsequent to the Company’s initial business combination, the closing price of the Company’s common stock equals or exceeds $12.00 per share (as adjusted for stock splits, stock capitalizations, reorganizations, recapitalizations and the like) for any 20 trading days within any 30‑trading day period commencing at least 150 days after the Company’s initial business combination, and (B) the date on which the Company completes a liquidation, merger, capital stock exchange or other similar transaction after the initial business combination that results in all of the Company’s stockholders having the right to exchange their common stock for cash, securities or other property. Private Placement Warrants In conjunction with the Public Offering, the Sponsor and Harry E. Sloan purchased an aggregate of 6,333,334 Private Placement Warrants, at a price of $1.50 per warrant (approximately $9,500,000 in the aggregate) in the IPO Private Placement. Each Private Placement Warrant entitles the holder to purchase one share of Class A Common Stock at $11.50 per share. A portion of the purchase price of the Private Placement Warrants was added to the proceeds from the Public Offering to be held in the Trust Account such that at closing of the Public Offering, $400,000,000 was placed in the Trust Account. On December 31, 2019, the Sponsor transferred an aggregate of 333,332 Private Placement Warrants to certain of the Company's independent directors. The Private Placement Warrants (including the shares of common stock issuable upon exercise of the Private Placement Warrants) are not transferable, assignable or salable until 30 days after the completion of the Business Combination and they are non-redeemable for cash so long as they are held by the initial purchasers of the Private Placement Warrants or their permitted transferees. If the Private Placement Warrants are held by someone other than the initial purchasers of the Private Placement Warrants or their permitted transferees, the Private Placement Warrants will be redeemable for cash by the Company and exercisable by such holders on the same basis as the warrants included in the Units sold in the Public Offering. Otherwise, the Private Placement Warrants have terms and provisions that are identical to those of the Warrants sold as part of the Units in the Public Offering and have no net cash settlement provisions. Registration Rights The holders of the Founder Shares, Private Placement Warrants and Warrants that may be issued upon conversion of working capital loans (and any Class A common stock issuable upon the exercise of the Private Placement Warrants and warrants that may be issued upon conversion of working capital loans and upon conversion of the Founder Shares) are entitled to registration rights pursuant to a registration rights agreement, requiring the Company to register such securities for resale. The holders of these securities are entitled to make up to three demands, excluding short form demands, that we register such securities. In addition, the holders have certain “piggy-back” registration rights with respect to registration statements filed subsequent to our completion of our initial business combination. The Company will bear the expenses incurred in connection with the filing of any such registration statements. In connection with the Business Combination, the holders of these securities entered into the Stockholders Agreement (as defined below). See Note 8. Sponsor Loans The Sponsor agreed to loan the Company up to an aggregate of $300,000 by the issuance of an unsecured promissory note (the “Note”) to cover expenses related to the Public Offering. The Note was payable without interest on the earlier of December 31, 2019 or the completion of the Public Offering. Upon completion of the Public Offering, $60,875 under the Note was repaid in full. As of March 31, 2020 and December 31, 2019, there was no outstanding balance under the Note. Administrative Services Agreement The Company entered into an administrative services agreement in which the Company reimbursed an affiliate of the Sponsor for office space, utilities and secretarial and administrative services provided to members of the Company’s management team in an amount not to exceed $15,000 per month. For the three months ended March 31, 2020 and the period from March 27, 2019 (inception) to March 31, 2019, the Company incurred $45,000 and nil, respectively, of administrative services expenses under the arrangement. The Company ceased paying these monthly fees upon the Closing. Working Capital Loans In order to finance transaction costs in connection with an intended initial business combination, the Sponsor or an affiliate of the Sponsor or certain of the Company’s officers and directors may, but are not obligated to, loan the Company funds as may be required. Up to $1,500,000 of such loans may be convertible into warrants of the post-Business Combination entity at a price of $1.50 per warrant at the option of the lender. Such warrants would be identical to the private placement warrants. The terms of such loans have not been determined and no written agreements exist with respect to such loans. No amounts were borrowed under this arrangement as of March 31, 2020 and December 31, 2019. Risks and Uncertainties Management is currently evaluating the impact of the COVID-19 pandemic on the industry and has concluded that while it is reasonably possible that the virus could have a negative effect on the Company's financial position and results of its operations, the specific impact is not readily determinable as of the date of these unaudited condensed consolidated financial statements. The unaudited condensed consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.		4. Related Party Transactions Founder Shares On March 28, 2019, the Sponsor received 10,062,500 shares of Class B common stock (the “Founder Shares”) in exchange for a capital contribution of $25,000, or approximately $0.002 per share. The Founder Shares are identical to the shares of Class A common stock included in the Units sold in the Public Offering except that the Founder Shares are subject to certain transfer restrictions, as described in more detail below. On April 10, 2019, the Sponsor transferred 4,930,625 Founder Shares to Harry E. Sloan (together with the Sponsor, the “initial stockholders”) for a purchase price of $12,250 (the same per-share price initially paid by the Sponsor), resulting in the Sponsor holding 5,131,875 Founder Shares. On May 10, 2019, the Sponsor and Mr. Sloan each forfeited at no cost 31,875 and 30,625 Founder Shares, respectively, to the Company in connection with the election by the underwriters of the Public Offering to exercise their over-allotment option in part and not in full, resulting in an aggregate of 10,000,000 Founder Shares outstanding. On December 31, 2019, the Sponsor transferred 20,000 Founder Shares to each of the Company’s independent directors, resulting in the Sponsor holding 5,020,000 Founder Shares, for the same per-share purchase price initially paid by the Sponsor. The initial stockholders and the Company’s independent directors have agreed not to transfer, assign or sell any of their Founder Shares until the earlier of (A) one year after the completion of the Company’s initial Business Combination, or earlier if, subsequent to the Company’s initial Business Combination, the closing price of the Company’s common stock equals or exceeds $12.00 per share (as adjusted for stock splits, stock capitalizations, reorganizations, recapitalizations and the like) for any 20 trading days within any 30‑trading day period commencing at least 150 days after the Company’s initial Business Combination, and (B) the date on which the Company completes a liquidation, merger, capital stock exchange or other similar transaction after the initial Business Combination that results in all of the Company’s stockholders having the right to exchange their common stock for cash, securities or other property. Rights—The Founder Shares are identical to the Public Shares except that (i) the Founder Shares are subject to certain transfer restrictions, as described above, and (ii) the initial stockholders have agreed to waive their redemption rights in connection with an initial business combination with respect to the Founder Shares and any Public Shares they may purchase, and to waive their redemption rights with respect to the Founder Shares if the Company fails to complete an initial business combination within 24 months from the closing of the Public Offering. Voting—If the Company seeks stockholder approval of an initial business combination, the initial stockholders have agreed to vote their Founder Shares and any Public Shares purchased during or after the Public Offering in favor of an initial business combination. Liquidation—Although the initial stockholders and their permitted transferees have waived their redemption rights with respect to the Founder Shares if the Company fails to complete an initial business combination within the prescribed time frame, they will be entitled to redemption rights with respect to any Public Shares they may own. Private Placement Warrants In conjunction with the Public Offering, the Sponsor and Harry E. Sloan purchased an aggregate of 6,333,334 private placement warrants (the “Private Placement Warrants”), at a price of $1.50 per warrant (approximately $9,500,000 in the aggregate) in the Private Placement. Each Private Placement Warrant entitles the holder to purchase one share of Class A common stock at $11.50 per share. A portion of the purchase price of the Private Placement Warrants was added to the proceeds from the Public Offering to be held in the Trust Account such that at closing of the Public Offering, $400,000,000 was placed in the Trust Account. On December 31, 2019, the Sponsor transferred 66,666 Private Placement Warrants to Scott Delman and 133,333 Private Placement Warrants to each of Joshua Kazam and Fredric Rosen for the same per-warrant purchase price initially paid by the Sponsor. The Private Placement Warrants (including the shares of common stock issuable upon exercise of the Private Placement Warrants) are not transferable, assignable or salable until 30 days after the completion of the initial business combination and they are non-redeemable for cash so long as they are held by the initial purchasers of the Private Placement Warrants or their permitted transferees. If the Private Placement Warrants are held by someone other than the initial purchasers of the Private Placement Warrants or their permitted transferees, the Private Placement Warrants will be redeemable for cash by the Company and exercisable by such holders on the same basis as the warrants included in the Units sold in the Public Offering. Otherwise, the Private Placement Warrants have terms and provisions that are identical to those of the Warrants sold as part of the Units in the Public Offering and have no net cash settlement provisions. If the Company does not complete an initial business combination, then the proceeds will be part of the liquidating distribution to the public stockholders and the Private Placement Warrants issued to the Sponsor, Scott Delman, Fredric Rosen, Joshua Kazam and Harry E. Sloan will expire worthless. Registration Rights The holders of the Founder Shares, Private Placement Warrants and Warrants that may be issued upon conversion of working capital loans (and any Class A common stock issuable upon the exercise of the Private Placement Warrants and warrants that may be issued upon conversion of working capital loans and upon conversion of the Founder Shares) are entitled to registration rights pursuant to a registration rights agreement, requiring the Company to register such securities for resale. The holders of these securities are entitled to make up to three demands, excluding short form demands, that we register such securities. In addition, the holders have certain “piggy-back” registration rights with respect to registration statements filed subsequent to our completion of our initial business combination. The Company will bear the expenses incurred in connection with the filing of any such registration statements. Related Party Loans The Sponsor agreed to loan the Company up to an aggregate of $300,000 by the issuance of an unsecured promissory note (the “Note”) to cover expenses related to the Public Offering. These loans were payable without interest on the earlier of December 31, 2019 or the completion of the Public Offering . Upon completion of the Public Offering , $60,675 was repaid in full. At December 31, 2019, there were no amounts outstanding under the Note. Administrative Services The Company will reimburse the Sponsor for office space, secretarial and administrative services provided to members of the Company’s management team by the Sponsor, members of the Sponsor, and the Company’s management team or their affiliates in an amount not to exceed $15,000 per month in the event such space and/or services are utilized and the Company does not pay a third party directly for such services, from the date of closing of the Public Offering. As of December 31, 2019, $90,000 of administrative expenses were incurred under this agreement and paid to the Sponsor. Upon completion of an initial business combination or the Company’s liquidation, the Company will cease paying these monthly fees. Working Capital Loans In order to finance transaction costs in connection with an intended initial business combination, the Sponsor or an affiliate of the Sponsor or certain of the Company’s officers and directors intend to loan the Company funds as may be required. Up to $1,500,000 of such loans may be convertible into warrants of the post-business combination entity at a price of $1.50 per warrant at the option of the lender. Such warrants would be identical to the Private Placement Warrants. Except for the foregoing, the terms of such loans, if any, have not been determined and no written agreements exist with respect to such loans. No amounts were borrowed under this arrangement as of December 31, 2019.

Commitments and Contingencies

3 Months Ended

6 Months Ended

12 Months Ended

Mar. 31, 2020

Jun. 30, 2020

Dec. 31, 2019

15.Commitments and Contingencies

Leases

Total rent expense for the three and six months ended June 30, 2020 was $4,702 and $7,785, respectively, and for the three and six months ended June 30, 2019 was $2,406 and $4,597, respectively.

Future minimum lease payments are as follows:


Years ending December 31,
From July 1, 2020 to December 31, 2020	$	8,435
2021		15,668
2022		13,947
2023		13,637
2024		12,029
Thereafter		35,766
Total	$	99,482

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:


Years ending December 31,
From July 1, 2020 to December 31, 2020	$	24,439
2021		51,487
2022		28,959
2023		17,463
2024		8,150
Thereafter		15,400
Total	$	145,898

Contingencies

Letters of Credit

13. Commitments and Contingencies

Leases

Total rent expense for the years ended December 31, 2019, 2018 and 2017 was $10,412, $5,266 and $3,431, respectively.

Future minimum lease payments are as follows:


Years ending December 31,
2020	$	10,067
2021		8,300
2022		8,374
2023		8,292
2024		7,310
Thereafter		23,685
Total	$	66,028

Other Contractual Obligations and Contingencies


Years ending December 31,
2020(a)	$	74,390
2021		54,725
2022		33,885
2023		13,689
2024		4,950
Thereafter		4,100
Total	$	185,739

(a) 2020 balance includes $13,880 of contingent success fees.

Included in the above contractual obligations are related party commitments from the MPA discussed in Note 13.

Litigation

From time to time, and in the ordinary course of business, the Company may be subject to certain claims, charges and litigation. Much of civil litigation to which the Company is a party relates to advertising and consumer protection matters. The majority of these cases were consolidated into a multi-district litigation (“MDL”) in February 2016 in the U.S. District Court for the District of Massachusetts along with claims against other entities and individuals within the DFS industry (the “DFS defendants”). On November 27, 2019, the Court granted in part and denied in part the DFS defendants’ motions to compel arbitration. The Company intends to vigorously defend itself. While we do not believe, based on currently available information, that the outcome of this proceeding will have a material adverse effect on the Company’s financial condition, the outcome could be material to the Company’s financial results for any particular period, depending, in part, upon the results for such period.

Settlement Liability

Letters of Credit

Trust Account and Fair Value Measurements

5. Commitments and Contingencies

Underwriting Agreement

In connection with the Closing, the Company paid the Deferred Discount in full.

5. Commitments and Contingencies

Trust Account and Fair Value Measurements - Diamond eagle acquisition

3 Months Ended

12 Months Ended

Mar. 31, 2020

Dec. 31, 2019

Trust Account

6. Trust Account

Level 3: Unobservable inputs based on our assessment of the assumptions that market participants would use in pricing the asset or liability.


			March 31,
Description	Level	2020
Assets:
Marketable securities held in Trust Account – U.S. Treasury Securities Money Market Fund	1	$	405,002,234

Transfers to/from Levels 1, 2, and 3 are recognized at the end of the reporting period. There were no transfers between levels for the three months ended March 31, 2020.


					Quoted prices in
	Carrying Value at		Gross unrealized		Active Markets
	December 31, 2019		Holding Gain		(Level 1)
Treasury Securities Held as of December 31, 2019(1)	$	403,960,089	$	31,347	$	403,991,436

(1)

Maturity date March 24, 2020.

On April 23, 2020, in connection with the Business Combination, the Company liquidated the Trust Account to fund the Business Combination and related expenses. See Note 8.

6. Trust Account and Fair Value Measurements


					Quoted prices in
	Carrying Value at		Gross unrealized		Active Markets
	December 31,2019		Holding Gain		(Level 1)
Treasury Securities Held as of December 31, 2019(1)	$	403,960,089	$	31,347	$	403,991,436

(1)

Maturity date March 24, 2020.

Stockholder's Equity

3 Months Ended

6 Months Ended

12 Months Ended

Mar. 31, 2020

Jun. 30, 2020

Dec. 31, 2019

8.Stockholder’s Equity

In June 2020, the Company issued 16,000 new shares of our Class A common stock in a public offering for net proceeds (net of underwriting fees) of $620,800.

As of June 30, 2020, the Company had 300,000 shares authorized of preferred stock, $0.0001 par value, none of which were issued and outstanding as of June 30, 2020 or December 31, 2019.

9. Common Stock

7. Stockholders’ Equity

The Company may call the Warrants for redemption (except with respect to the Private Placement Warrants):

in whole and not in part;

at a price of $0.01 per warrant;

upon a minimum of 30 days’ prior written notice of redemption; and

The exercise price and number of shares of Class A Common Stock issuable upon exercise of the Warrants may be adjusted in certain circumstances.

7.Stockholders’ Equity

Preferred Stock — The Company is authorized to issue 1,000,000 preferred shares. At December 31, 2019, no preferred shares were outstanding.

The Private Placement Warrants are identical to the Public Warrants underlying the Units sold in the Public Offering, except that the Private Placement Warrants and the shares of Class A common stock issuable upon exercise of the Private Placement Warrants will not be transferable, assignable or salable until 30 days after the completion of an initial business combination, subject to certain limited exceptions. Additionally, the Private Placement Warrants will be non-redeemable so long as they are held by the initial purchasers or such purchasers’ permitted transferees. If the Private Placement Warrants are held by someone other than their initial purchasers or their permitted transferees, the Private Placement Warrants will be redeemable by the Company and exercisable by such holders on the same basis as the Public Warrants.

The Company may call the warrants for redemption (except with respect to the Private Placement Warrants):

in whole and not in part;

at a price of $0.01 per warrant;

upon a minimum of 30 days’ prior written notice of redemption; and

Income Tax

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

Income Tax

11.Income Taxes

Three and six months ended June 30, 2020 and June 30, 2019 is as follows:


	Three months ended June 30,				Six months ended June 30,
	2020		2019		2020		2019
Provisions for income taxes	$	323	$	7	$	332	$	16

11. Income Taxes

Loss before provision for (benefit from) income taxes for the years ended December 31, 2019, 2018 and 2017 consist of the following:


	Year Ended December 31,
	2019		2018		2017
United States	$	(142,198)	$	(76,122)	$	(75,445)
Foreign		1		7		99
Loss before provision for (benefit from) income taxes	$	(142,197)	$	(76,115)	$	(75,346)

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


	Year Ended December 31,
	2019		2018		2017
Current:
Federal	$	—	$	—	$	—
State		—		—		—
Foreign		4		86		65
Total current provision		4		86	$	65
Deferred:
Federal	$	—	$	9	$	36
State		54		10		109
Foreign		—		—		—
Total deferred provision		54		19		145
Total provision	$	58	$	105	$	210

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, 2019, 2018 and 2017 are as follows:


	Year Ended December 31,
	2019		2018		2017
Provision for income taxes at statutory rate	$	(29,863)	$	(15,984)	$	(25,400)
Prior year provision true-ups		3,164		(157)		982
State taxes, net of federal benefit		(7,522)		(7,525)		(2,769)
Certain stock-based compensation expenses		2,412		430		536
Non-deductible lobbying expenses		1,885		1,352		2,505
Non-deductible acquisition expenses		2,068		—		—
Change in valuation allowance		19,988		21,584		(66,370)
Impact of federal rate change on net deferred taxes		—		—		90,889
Net operating loss write-off		7,246		—		—
Other		680		405		(163)
Provision for income taxes	$	58	$	105	$	210

Significant components of the Company’s deferred tax assets (liabilities) as of December 31, 2019 and 2018 are as follows:


	As of December 31,
	2019		2018
Deferred tax assets:
Stock-based compensation	$	4,552	$	3,472
Intangible assets		123		187
Fixed assets		—		365
Accrual and other temporary differences		20,907		12,273
Credit carryforwards		15		15
Net operating loss carryforwards		217,836		203,180
Total deferred tax assets:	$	243,433	$	219,492
Deferred tax liability:
Capitalized software costs		(6,335)		(4,364)
Fixed assets		(2,035)		—
Total Net Deferred Tax Assets		235,063		215,128
Valuation allowance		(235,280)		(215,292)
Net deferred tax liabilities	$	(217)	$	(164)

Income Tax

8. Income Tax

The Company incurred United States federal income tax expense of approximately $944,494 for the period from March 27, 2019 (date of inception) through December 31, 2019.

The Company made three estimated quarterly tax payments of $383,333 each, to the Internal Revenue Service (“IRS”) for federal income taxes estimated for 2019 on interest earned in the Trust Account. The funds were paid from the Trust Account. At December 31, 2019, the Company had prepaid federal income taxes of $205,505 included in prepaid expenses on the accompanying consolidated balance sheet.

The Company’s provision for income tax consists of the following:


	For the Period Ended December 31,
	2019

Federal
Current	$	944,494
Deferred		(261,174)
State
Current		—
Deferred		—
Change in valuation allowance		261,174
Income tax provision	$	944,494

The Company incurred costs of $1,237,757 related to its search to complete a business combination which are not deductible for federal income tax purposes and resulted in the generation of a deferred tax asset of $261,174 which is available to offset future taxable income.

In assessing the realization of deferred tax assets, the Company considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which temporary differences representing net future deductible amounts become deductible. The Company considers the scheduled reversal of deferred tax assets, projected future taxable income and tax planning strategies in making this assessment.

A reconciliation of the federal income tax rate to the Company’s effective tax rate at December 31, 2019 is as follows:


	For the Period Ended
	December 31, 2019

Statutory federal income tax rate	21.0	%
State taxes, net of federal tax benefit	0.0	%
Deferred tax rate change
Change in valuation allowance	8.0	%
Income tax provision	29.0	%

Business Combination	12 Months Ended
Business Combination	Dec. 31, 2019
Diamond eagle acquisition
Business Acquisition [Line Items]
Business Combination	9. Business Combination On December 22, 2019, the Company entered into a business combination agreement (the “Business Combination Agreement”) with DraftKings Inc., a Delaware corporation (“DK”), SBTech (Global) Limited, a company limited by shares, incorporated in Gibraltar and continued as a company under the Isle of Man Companies Act 2006, with registration number 014119V (“SBT”), the shareholders of SBT (the “SBT Sellers”), Shalom Meckenzie, in his capacity as the SBT Sellers’ Representative, DEAC NV Merger Corp., a Nevada corporation and a wholly-owned subsidiary of the Company (“DEAC Nevada”) and DEAC Merger Sub Inc., a Delaware corporation and a wholly-owned subsidiary of the Company (“Merger Sub”), pursuant to which (i) the Company will change its jurisdiction of incorporation to Nevada by merging with and into DEAC Nevada, with DEAC Nevada surviving the merger (the “reincorporation”), (ii) Merger Sub will merge with and into DK with DK surviving the merger (the “DK Merger”), and (iii) immediately following the DK Merger, New DraftKings (as defined below) will acquire all of the issued and outstanding share capital of SBT. Upon consummation of the transactions contemplated by the Business Combination Agreement, DraftKings and SBT will become wholly owned subsidiaries of DEAC Nevada, which will be renamed “DraftKings Inc.” and is referred to herein as “New DraftKings” both as of the time of the reincorporation and following such name change. DK is a digital sports entertainment and gaming company. DK provides users with daily fantasy sports, sports betting and iGaming opportunities. SBT’s principal business activities involve the design and development of sports betting and casino gaming platform software for online and retail sportsbook and casino gaming products. The aggregate value of the consideration to be paid to DK and SBT shareholders in the Business Combination is approximately $2.7 billion, of which (A) approximately $2.055 billion will be paid to (i) the current equityholders of DK (the “DK Sellers”) in the form of shares of Class A common stock of New DraftKings (“New DraftKings Class A common stock”), valued at the redemption price for the Company’s public shares in the Business Combination, plus in the case of Jason Robins, such additional number of shares of Class B common stock of New DraftKings (“New DraftKings Class B common stock”) such that as of immediately following the completion of the Business Combination, Mr. Robins shall have approximately ninety percent (90%) of the voting power of the capital stock of New DraftKings on a fully-diluted basis, and (ii) holders of vested in-the-money options and warrants exercisable for DK equity in the form of newly issued options and warrants of New DraftKings exercisable for New DraftKings Class A common stock, and (B) approximately €590 million will be paid to the SBT Sellers and holders of vested options exercisable for equity of SBT, consisting of (i) €180 million in cash, subject to customary net debt and working capital adjustments as well as certain other specified items (the “Cash Consideration”) payable in respect of the ordinary shares of SBT and 30% of the in-the-money vested options of SBT and (ii) approximately €410 million in shares of New DraftKings Class A common stock, valued at the redemption price for the Company’s public shares in the Business Combination, and in the form of newly issued in-the-money vested options of New DraftKings exercisable for New DraftKings Class A common stock. Outstanding options exercisable for DK or SBT equity (other than cashed-out options of SBT, for which the holders will receive a portion of the Cash Consideration for such options) will be converted into options exercisable for shares of New DraftKings Class A common stock. After the execution of the BCA, DK granted restricted stock units to certain of its employees, which will be converted into restricted stock units denominated in New DraftKings Class A common stock. The Cash Consideration will come from the following sources: (1) proceeds available from the Company’s Trust Account, after giving effect to any and all redemptions; and (2) proceeds from private placements of shares of the Company’s Class A common stock to certain institutional investors to occur immediately prior to the closing of the Business Combination, of which the Company currently has commitments for $304.7 million of proceeds. Additional information regarding DK, SBT and the Business Combination is available in the definitive proxy statement/prospectus filed with the SEC on January 6, 2020.

Significant Accounting Policies (Policies)

3 Months Ended

6 Months Ended

12 Months Ended

Mar. 31, 2020

Jun. 30, 2020

Dec. 31, 2019

Earnings (loss) per share

Concentrations of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of operating cash and cash reserved for users. The Company maintains cash and cash reserves for users primarily across five financial institutions; however, the vast majority is held with one financial institution within separate bank accounts, which management believes to be of a high credit quality, in amounts that exceed federally insured limits. The Company does not believe that it is subject to unusual credit risk beyond the normal credit risk associated with commercial banking relationships.

Fair Value Measurements

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

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 the financial statements and tax bases 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 provision. 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.

Recently Adopted Accounting Pronouncements

Recent Accounting Pronouncements Not Yet Adopted

Basis of Presentation

The fair value of the Company’s assets and liabilities, which qualify as financial instruments under FASB ASC 820, “Fair Value Measurements and Disclosures,” approximates the carrying amounts represented in the consolidated balance sheet with the exception of investments in Trust, as they are carried at amortized cost.

Offering Costs

Redeemable Shares

Accordingly, at December 31, 2019, 38,427,853 shares of the 40,000,000 shares of Class A common stock included in the Units were classified outside of permanent equity.

Trust Account (Tables)

3 Months Ended

12 Months Ended

Mar. 31, 2020

Dec. 31, 2019

Summary of fair values of its investments


			March 31,
Description	Level	2020
Assets:
Marketable securities held in Trust Account – U.S. Treasury Securities Money Market Fund	1	$	405,002,234


					Quoted prices in
	Carrying Value at		Gross unrealized		Active Markets
	December 31, 2019		Holding Gain		(Level 1)
Treasury Securities Held as of December 31, 2019(1)	$	403,960,089	$	31,347	$	403,991,436

(1)

Maturity date March 24, 2020.


					Quoted prices in
	Carrying Value at		Gross unrealized		Active Markets
	December 31,2019		Holding Gain		(Level 1)
Treasury Securities Held as of December 31, 2019(1)	$	403,960,089	$	31,347	$	403,991,436

Maturity date March 24, 2020.

Income Tax (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

Schedule of Company's provision for income tax

Three and six months ended June 30, 2020 and June 30, 2019 is as follows:


	Three months ended June 30,				Six months ended June 30,
	2020		2019		2020		2019
Provisions for income taxes	$	323	$	7	$	332	$	16


	Year Ended December 31,
	2019		2018		2017
Current:
Federal	$	—	$	—	$	—
State		—		—		—
Foreign		4		86		65
Total current provision		4		86	$	65
Deferred:
Federal	$	—	$	9	$	36
State		54		10		109
Foreign		—		—		—
Total deferred provision		54		19		145
Total provision	$	58	$	105	$	210

Schedule of reconciliation of the federal income tax rate to the Company's effective tax rate


	Year Ended December 31,
	2019		2018		2017
Provision for income taxes at statutory rate	$	(29,863)	$	(15,984)	$	(25,400)
Prior year provision true-ups		3,164		(157)		982
State taxes, net of federal benefit		(7,522)		(7,525)		(2,769)
Certain stock-based compensation expenses		2,412		430		536
Non-deductible lobbying expenses		1,885		1,352		2,505
Non-deductible acquisition expenses		2,068		—		—
Change in valuation allowance		19,988		21,584		(66,370)
Impact of federal rate change on net deferred taxes		—		—		90,889
Net operating loss write-off		7,246		—		—
Other		680		405		(163)
Provision for income taxes	$	58	$	105	$	210