History of DraftKings in Timeline
DraftKings Inc. is a US-based gambling company headquartered in Boston, Massachusetts. They provide platforms for sports betting and daily fantasy sports (DFS).
1992: Professional and Amateur Sports Protection Act (PASPA) Enacted
The Professional and Amateur Sports Protection Act (PASPA) was enacted in 1992. This federal law effectively outlawed sports betting in most states, with Nevada being a notable exception. However, PASPA was later deemed unconstitutional by the Supreme Court in May 2018, paving the way for the expansion of legal sports betting across the United States.
September 11, 2001: September 11 Attacks
The September 11 attacks were a series of terrorist attacks by Al-Qaeda against the United States on the morning of September 11, 2001.
2012: DraftKings is Founded
DraftKings was founded in 2012 by Jason Robins, Matthew Kalish, and Paul Liberman, all former employees of Vistaprint. The company's operations initially ran out of Liberman's residence. Their first product, a one-on-one baseball competition, was timed to coincide with Major League Baseball's opening day in 2012.
2012: DraftKings Launches as a DFS Provider
DraftKings was initially launched in 2012 as a Daily Fantasy Sports (DFS) provider, primarily competing with FanDuel, another major player in the industry.
April 2013: Major League Baseball Invests in DraftKings
In a groundbreaking move, Major League Baseball invested in DraftKings in April 2013, marking the first instance of a US professional sports league investing in daily fantasy sports. The investment amount, however, was not disclosed.
2013: DraftKings Awards $50 Million in Prizes
In 2013, DraftKings awarded a total of $50 million in prizes to players participating in their daily fantasy sports contests.
February 2014: DraftKings Reports Significant Growth in Prizes and Users
DraftKings announced in February 2014 that it had awarded a staggering $50 million in prizes to players across various daily fantasy sports, including football, baseball, basketball, and hockey in 2013. The company also reported a user base of 50,000 active daily users and an impressive one million registered players.
July 2014: DraftKings Acquires DraftStreet, Expanding User Base
In July 2014, DraftKings acquired its competitor DraftStreet, then owned by IAC, the third largest entity in the fantasy sports realm. This strategic acquisition resulted in a significant 50% increase in DraftKings' user base. The company announced plans to maintain DraftStreet's New York office and retain some employees.
August 2014: DraftKings Secures $41 Million Funding and Acquires StarStreet
In August 2014, DraftKings secured $41 million in funding from various investors, including The Raine Group, along with existing investors Redpoint Ventures, GGV Capital, and Accomplice. Additionally, the company announced the acquisition of the assets of its competitor, StarStreet, based in Somerville, Massachusetts.
November 2014: DraftKings Partners with the National Hockey League
DraftKings secured a two-year deal with the National Hockey League (NHL) in November 2014, becoming the official daily fantasy sports service of the league. This partnership encompassed sponsorships of video features and other content across NHL's digital platforms, co-branded free games with fan-focused prizes, and in-venue advertising during major NHL events. Yahoo! Sports, however, retained its position as the NHL's official season-length fantasy sports provider.
2014: DraftKings Receives $304 Million in User Entry Fees
In 2014, DraftKings generated significant revenue, reporting $304 million collected from users' entry fees.
April 2015: DraftKings Partners with Major League Baseball
DraftKings signed a deal with Major League Baseball (MLB) in April 2015, allowing the company to offer co-branded MLB daily fantasy games and deepen its relationships with individual MLB clubs to offer in-stadium fantasy-related experiences.
July 2015: DraftKings Raises $300 Million in Funding Led by Fox Sports
In July 2015, DraftKings raised a substantial $300 million in funding, a round led by Fox Sports, joined by the Kraft Group, owners of the New England Patriots, and Wellington Management, a financial powerhouse based in Boston. A key condition of this agreement stipulated that DraftKings would invest $250 million in advertising with Fox Sports over the following three years. Following Disney's acquisition of 21st Century Fox in March 2019, Fox's stake in DraftKings is now held by The Walt Disney Company.
July 2015: DraftKings Strikes $250 Million Advertising Deal with ESPN
In July 2015, DraftKings secured a substantial three-year advertising deal with ESPN, valued at $250 million. This partnership encompassed integrating DraftKings' services within ESPN's television and digital content, and granted DraftKings exclusive rights to advertise DFS services on ESPN's networks starting January 2016.
August 2015: DraftKings Granted License to Operate in the UK
DraftKings was granted a license by the Gambling Commission of the United Kingdom in August 2015, authorizing the company to offer pool wagering services. The company revealed its plans to establish an office in London and appointed Jeffrey Haas, a seasoned professional from the online poker industry, as Chief International Officer to spearhead DraftKings' global expansion.
October 5, 2015: DraftKings Faces Data Leak Controversy and Regulatory Scrutiny
An article published in The New York Times on October 5, 2015, revealed that a DraftKings employee had unintentionally disclosed data prior to the start of week three's NFL games. Adding fuel to the fire, the same employee had won a substantial $350,000 on FanDuel, a rival fantasy site, during the same week. DraftKings conducted an internal review, concluding that the employee accessed the data after lineups were locked, implying that the data couldn't have been used to gain an unfair advantage. Both DraftKings and FanDuel issued statements emphasizing the paramount importance of the integrity of the games they offered to customers and pledging to collaborate with the entire fantasy sports industry to maintain trust and enjoyment for fans. The following day, New York Attorney General Eric Schneiderman initiated an inquiry into both DraftKings and FanDuel, demanding internal data and information on their fraud prevention measures. ESPN announced on October 6 that it would cease running DraftKings-sponsored segments, although paid DraftKings advertisements would persist.
January 2016: DraftKings' Exclusivity on ESPN Begins
DraftKings' exclusive rights to advertise DFS services on ESPN's networks commenced in January 2016, as part of the $250 million advertising deal signed in July 2015. This exclusivity positioned them as a prominent player in the daily fantasy sports market.
February 5, 2016: DraftKings Launches in the UK with Daily Fantasy Soccer
On February 5, 2016, DraftKings officially launched in the United Kingdom, featuring daily fantasy soccer as its flagship offering. To cater to the local audience, DraftKings made enhancements to its handling of soccer on its platform.
February 2016: ESPN Withdraws from Advertising Deal with DraftKings
In February 2016, due to mounting legal uncertainties surrounding DraftKings and the daily fantasy sports industry, ESPN made the decision to pull out of its advertising agreement with DraftKings.
May 2, 2016: Idaho Bans DraftKings and FanDuel
On May 2, 2016, Idaho Attorney General Lawrence Wasden banned both DraftKings and FanDuel from operating within the state, categorizing their operations as illegal gambling. This decision underscored the ongoing legal and regulatory challenges faced by the daily fantasy sports industry.
November 18, 2016: DraftKings and FanDuel Announce Merger Plans
On November 18, 2016, DraftKings and FanDuel, the two dominant players in the daily fantasy sports market, announced their intention to merge. The combined entity was projected to serve a vast user base exceeding five million.
2016: DraftKings and FanDuel Face Allegations of Unfair Practices
Prior to 2016, DraftKings and FanDuel faced allegations of engaging in unfair and deceptive business practices, ultimately leading to a settlement with the Massachusetts Attorney General's office in September 2017.
June 19, 2017: FTC Moves to Block DraftKings-FanDuel Merger
On June 19, 2017, the Federal Trade Commission (FTC) announced its intention to pursue a preliminary injunction to prevent the proposed merger between DraftKings and FanDuel. The FTC argued that the merger would create a company with a 90% market share in the US DFS market, effectively establishing a monopoly.
July 13, 2017: DraftKings-FanDuel Merger Called Off
Facing the looming threat of litigation from the Federal Trade Commission (FTC), DraftKings and FanDuel officially abandoned their proposed merger on July 13, 2017.
September 2017: DraftKings and FanDuel Settle with Massachusetts Attorney General
In September 2017, DraftKings and FanDuel each agreed to pay $1.3 million to settle allegations of unfair and deceptive business practices brought forth by the Massachusetts Attorney General's office. These allegations stemmed from the companies' operations prior to 2016.
May 2018: DraftKings Expands into Sportsbooks
In May 2018, DraftKings capitalized on the growing legalization of sports betting in the US and expanded its operations to include online and retail sportsbooks. This strategic move aimed to leverage the company's established brand recognition and customer base.
May 2018: Supreme Court Paves the Way for Legal Sports Betting
In a landmark decision in May 2018, the Supreme Court of the United States ruled that the Professional and Amateur Sports Protection Act of 1992 was unconstitutional. This ruling opened the door for states beyond Nevada to legalize sports betting.
August 2018: DraftKings Launches Online Sportsbook in New Jersey
Following the legalization of sports betting in New Jersey, DraftKings seized the opportunity and launched its first legal online sportsbook in the state in August 2018.
March 2019: Disney Acquires Fox's Stake in DraftKings
As a result of Disney's acquisition of 21st Century Fox in March 2019, Fox's ownership stake in DraftKings, acquired through a funding round in July 2015, was transferred to The Walt Disney Company.
May 2019: Diamond Eagle Acquisition Corp. Goes Public
Diamond Eagle Acquisition Corp., the special-purpose acquisition company that would later merge with DraftKings, went public in May 2019.
April 2020: DraftKings Completes Reverse Merger, Becomes Publicly Traded Company
DraftKings merged with Diamond Eagle Acquisition Corp and SBTech Global Ltd. in April 2020, valuing the combined entity at $3.3 billion. The deal allowed DraftKings to go public while maintaining its name and executive leadership.
April 2020: DraftKings Goes Public Through Reverse Merger
In April 2020, DraftKings went public through a reverse merger with SBTech, a Bulgarian technology firm, and Diamond Eagle Acquisition Corp, a special-purpose acquisition company.
September 2020: Michael Jordan Joins DraftKings as Investor and Advisor
In September 2020, basketball legend Michael Jordan became an investor in DraftKings and joined the company's board of advisors.
March 2021: DraftKings Acquires Vegas Stats & Information Network
DraftKings purchased the Vegas Stats & Information Network (VSiN) from the family of sportscaster Brent Musburger in March 2021, expanding its reach into sports betting media.
July 2021: DraftKings Strikes Deal with Dan Le Batard's Meadowlark Media
In July 2021, DraftKings agreed to a major deal with Meadowlark Media, founded by sports personality Dan Le Batard, to distribute his popular sports and culture podcast. The multi-year deal was valued at at least $50 million.
December 2021: Colossus Bets Sues DraftKings for Patent Infringement
DraftKings faced a lawsuit from Colossus Bets in December 2021, with Colossus alleging that DraftKings' cash-out feature infringed on seven of its patents related to sports betting.
May 2022: DraftKings Acquires Golden Nugget Online Gaming
DraftKings further expanded its online gaming footprint in May 2022 through the acquisition of Golden Nugget Online Gaming.
September 11, 2023: DraftKings Apologizes for 9/11-Themed Promotion
DraftKings faced heavy criticism and issued an apology on September 11, 2023, after running a promotion tied to the anniversary of the September 11 attacks. The company was accused of insensitivity for using the tragedy to promote betting on New York-based teams.
October 2023: DraftKings Requests Voiding of Bets Due to Market Error
Despite setting record revenue and handle numbers in Massachusetts during October 2023, DraftKings asked the state's Gaming Commission to void 178 bets. The company cited an error in an NBA prop market that led to the mistake, potentially costing them over $500,000 in payouts.
February 2024: DraftKings Acquires Lottery App Jackpocket
DraftKings acquired the popular lottery courier app Jackpocket in February 2024 for $750 million, signaling their expansion into the online lottery market.
July 2024: DraftKings Sells VSiN Back to Musburger Family
In July 2024, DraftKings sold the Vegas Stats & Information Network (VSiN) back to the Musburger family, just three years after acquiring it.
