Who Owns DraftKings? Breaking Down the Billion-Dollar Betting Empire
- Kumar Shubham
- 6 days ago
- 8 min read
Vanguard Group holds the largest stake in DraftKings, owning 8.29% of the company, followed by BlackRock at 4.49%. The general public controls a significant 36% stake through retail and individual investors, while the remaining shares are distributed among various institutional holders.
Founded in 2012 by Jason Robins, Matthew Kalish, and Paul Liberman, DraftKings has evolved from a spare-bedroom startup into a major sports betting powerhouse. The company's ownership landscape shifted dramatically after its 2020 public debut through a merger with Diamond Eagle Acquisition Company and SBTech, creating a $3.3 billion public entity.
DraftKings has delivered impressive growth metrics. Shares surged 209.5% in 2023 alone, and the company reported a 44% revenue increase that same year. However, profitability remains elusive. With operations spanning 27 states plus Ontario, Canada, DraftKings has secured official fantasy partnerships with major sports leagues including the NFL, NHL, PGA TOUR, UFC, and NASCAR.
This guide breaks down DraftKings' ownership structure, explores its founding story, examines its transition to public ownership, and identifies the biggest stakeholders in this billion-dollar betting empire.
Who owns DraftKings today?
DraftKings operates as a publicly traded company with no single entity holding majority control. The company trades on the Nasdaq under ticker symbol "DKNG", creating a diverse ownership structure that spans institutional investors, retail shareholders, and company insiders.
DraftKings is a public company
DraftKings entered public markets through a reverse merger with SBTech (a Bulgarian technology company) and special-purpose acquisition company Diamond Eagle Acquisition Corp in April 2020. Since April 24, 2020, investors can purchase shares directly on the Nasdaq exchange.
This transition brought significant regulatory requirements. As a public company, DraftKings must file quarterly financial reports and disclose major ownership changes per SEC regulations. These filings provide visibility into who controls the company and how ownership percentages shift over time.
The market's initial reception proved strong. By July 2021, DraftKings reached a market capitalization of $20.64 billion, reflecting substantial investor confidence in the company's growth potential.
No parent company: It operates independently
DraftKings maintains independence as a standalone organization rather than operating as a subsidiary. The company positions itself as "a digital sports entertainment and gaming company" offering "daily fantasy sports, sports betting and iGaming opportunities".
This independence enables strategic flexibility. Without parent company oversight, DraftKings can pursue its mission of "making life more exciting by responsibly creating the world's favorite real-money games and betting experiences" while making rapid decisions about product development, market expansion, and partnerships.
Majority ownership lies with institutions
Institutional investors control the economic landscape at DraftKings. Below are key statistics that highlight the ownership distribution:
• Institutional ownership: 84.41% of shares
• Company insiders: 2.45% ownership
• Retail investors: 7.57% of shares
Among institutional holders, Vanguard Group leads with 43.09 million shares representing 8.68% of the company. Other major institutional stakeholders include:
BlackRock Inc.: 29.74 million shares (5.99%)
FMR, LLC: 21.95 million shares (4.42%)
Wellington Management Group: 19.03 million shares (3.84%)
T. Rowe Price Investment Management: 18.7 million shares (3.77%)
However, ownership and control operate differently at DraftKings. The company maintains a dual-class share structure where Class A shares carry one vote per share while Class B shares carry ten votes per share. This structure gives CEO Jason Robins approximately 90% of the voting power, despite institutional investors owning most economic interest.
The result creates an interesting dynamic: institutions may own the majority of shares, but Robins retains effective control over major company decisions. This separation of economic ownership from voting control allows leadership to focus on long-term strategy without excessive quarterly pressure.
DraftKings currently has 1,054 institutional holders, with total institutional holdings valued at approximately $14.87 billion according to recent filings.
The founders and how it all started
Three Vistaprint colleagues turned their shared frustration with corporate life into a billion-dollar sports betting empire. Their journey from dissatisfied employees to industry leaders demonstrates how market timing and domain expertise can create extraordinary outcomes.
Jason Robins, Matthew Kalish, and Paul Liberman
The co-founders met while working at Vistaprint, an online printing company. United by their passion for fantasy sports, they regularly brainstormed entrepreneurial opportunities during after-work conversations.
Liberman proposed creating a fantasy sports product that eliminated the season-long commitment traditional fantasy required. The trio invested approximately $25,000 of personal savings to incorporate DraftKings, launching operations from Liberman's spare bedroom.
From fantasy sports idea to billion-dollar brand
Their debut product was a head-to-head baseball competition that launched alongside Major League Baseball's 2012 opening day. The founders leveraged their Vistaprint experience in customer acquisition and data analytics, applying these skills to the fantasy sports market. Within months, they secured $1.4 million in Series A funding and delivered their first mobile app for the 2012 baseball season opener.
Growth accelerated quickly. DraftKings reported 50,000 active daily users and one million registered players by February 2014. The company distributed $50 million in prizes that year across weekly fantasy football, daily fantasy baseball, basketball, and hockey. Strategic acquisitions fueled expansion, including the July 2014 purchase of competitor DraftStreet, which boosted their user base by 50%.
Early funding and MLB investment
Major League Baseball made history in April 2013 by becoming the first US professional sports league to invest in daily fantasy sports, choosing DraftKings as their partner. This endorsement provided crucial credibility and led to DraftKings becoming MLB's official fantasy partner in 2015.
Capital continued flowing to the startup. Following their initial $1.4 million seed round, Atlas Venture (now Accomplice) led a $7 million Series A round. Redpoint Ventures spearheaded a $24 million Series B in November 2013. DraftKings announced an additional $41 million from various investors, including The Raine Group, by August 2014.
DraftKings' IPO and transition to public ownership
DraftKings chose an unconventional route to public markets in 2020, fundamentally reshaping who controls the sports betting company. This transition marked a pivotal shift from concentrated founder ownership to a distributed shareholder base that defines the company today.
Going public via SPAC in 2020
Rather than pursuing a traditional IPO, DraftKings executed a three-way merger with Diamond Eagle Acquisition Corp (a special purpose acquisition company) and SBTech (a sports betting technology provider). The transaction closed on April 24, 2020, allowing DraftKings to sidestep the lengthy traditional IPO process while securing substantial capital.
The deal valued the combined entity at approximately $3.3 billion and injected over $600 million in cash into DraftKings. The timing proved strategic despite the challenging backdrop—the company went public during the early months of the COVID-19 pandemic when many traditional IPOs faced delays. DraftKings shares jumped 10% on their debut trading day, signaling strong investor appetite.
Impact of the IPO on ownership structure
The SPAC merger created a complete ownership makeover. Before going public, control rested primarily with the three founders and early private investors. The public listing opened ownership to institutional investors, mutual funds, ETFs, and individual retail shareholders.
This shift diluted the economic stakes of original investors while creating a much broader ownership base. The SBTech merger added another layer of complexity, bringing in shareholders who received equity in the combined company. Within twelve months of the IPO, institutional ownership expanded rapidly as investment firms recognized the growth potential in legalized sports betting.
Stock classes: Class A vs Class B shares
DraftKings implemented a dual-class share structure designed to preserve founder control while accessing public capital markets. Class A shares, available to public investors, carry one vote per share. Class B shares hold ten votes per share and remain concentrated with company insiders, particularly CEO Jason Robins.
This structure separates economic ownership from voting control. Institutional investors may own the majority of the company's economic value, but voting power stays concentrated with insiders. Class B shares automatically convert to Class A shares upon transfer (with limited exceptions), ensuring voting control doesn't accidentally shift to outside parties.
The arrangement enables DraftKings to pursue long-term strategic initiatives without excessive pressure from quarterly-focused public market investors. However, corporate governance experts often criticize such structures for limiting traditional shareholder democracy and accountability.
Who holds the biggest stakes in DraftKings?
Institutional investors dominate DraftKings' shareholder base, controlling approximately 85.98% of the company's shares. The remaining ownership splits between individual insiders and retail investors, creating a structure where large financial institutions wield significant economic influence.
Top institutional investors and their percentages
Vanguard Group leads as DraftKings' largest shareholder with 43.09 million shares, representing 8.68% of the company. Other major institutional stakeholders include:
BlackRock Inc.: 29.68 million shares (5.98%)
FMR LLC (Fidelity): 20.93 million shares (4.22%)
T. Rowe Price Group: 20.05 million shares (4.04%)
Wellington Management Group: 19.03 million shares (3.84%)
These five institutions alone control over 26% of DraftKings. While this gives them substantial economic influence, their voting power remains limited due to the dual-class share structure that concentrates control with company leadership.
Insider ownership and executive stakes
Company insiders, including executives and directors, hold approximately 2.32% of DraftKings. Co-founder Matthew Kalish owns 4.35 million shares, while CEO Jason Robins has gradually reduced his holdings, selling $26.9 million worth of stock in early 2024. As of May 2025, Robins holds 3.38 million shares, yet maintains control through his Class B shares with 10x voting power.
Retail investors and public shareholding
Individual retail investors account for about 12.7% of DraftKings ownership. This relatively modest percentage reflects how institutional money has flowed into the company since its public debut, creating a shareholder base dominated by large investment firms rather than individual investors.
Ownership by mutual funds and ETFs
Many institutional holdings flow through mutual funds and ETFs. Popular funds holding DraftKings shares include the Vanguard Total Stock Market Index Fund, Janus Henderson Forty Fund, and ARK Innovation ETF. The company appears in 130+ ETFs, with highest concentrations in gambling and sports betting themed funds like VanEck Gaming ETF (6.41% weight) and Roundhill Sports Betting & iGaming ETF (6.18% weight).
Changes in ownership over time
Institutional ownership has fluctuated but remained above 80% since going public. Most notably, BlackRock reduced its position by 26.26% in April 2025, indicating possible profit-taking after DraftKings' share price gains. These shifts reflect how institutional investors adjust their positions based on market conditions and company performance.
Conclusion
DraftKings operates with a unique ownership structure that separates economic control from voting power. While Vanguard Group and BlackRock lead institutional ownership, CEO Jason Robins retains approximately 90% of voting control through the company's dual-class share system.
The path from spare-bedroom startup to public entity worth billions illustrates how ownership evolves as companies scale. The 2020 SPAC merger opened the door to institutional investment while preserving founder control—a balance that has supported DraftKings' expansion across 27 states and Ontario, Canada.
Takeaways
DraftKings' ownership composition reflects the modern public company structure where institutional investors provide capital while founders maintain strategic direction. This arrangement has enabled rapid growth, though profitability remains the company's next milestone.
The sports betting industry continues expanding, and DraftKings' ownership structure positions it to capitalize on new opportunities. Whether this balance between institutional investment and founder influence will drive long-term success depends largely on the company's ability to convert its impressive revenue growth into sustainable profits.
For investors considering DraftKings, understanding this ownership dynamic is crucial. The company offers exposure to the growing sports betting market while operating under the strategic vision of its founding team.
FAQs
Q1. Who are the major shareholders of DraftKings?
The largest shareholder of DraftKings is Vanguard Group, owning 8.68% of the company. Other major institutional investors include BlackRock Inc., FMR LLC (Fidelity), T. Rowe Price Group, and Wellington Management Group.
Q2. How did DraftKings become a public company?
DraftKings went public in 2020 through a three-way merger with Diamond Eagle Acquisition Corp (a SPAC) and SBTech. This unconventional method allowed the company to bypass the traditional IPO process and raise substantial capital.
Q3. Who founded DraftKings and how did it start?
DraftKings was founded in 2012 by Jason Robins, Matthew Kalish, and Paul Liberman. They started the company from a spare bedroom in Watertown, Massachusetts, initially focusing on daily fantasy sports before expanding into sports betting.
Q4. What percentage of DraftKings is owned by retail investors?
Individual retail investors account for approximately 12.7% of DraftKings ownership, while institutional investors hold the majority of shares at around 85.98%.
Q5. How does DraftKings' dual-class share structure affect ownership control?
DraftKings has a dual-class share structure where Class A shares have one vote per share, while Class B shares have ten votes per share. This structure allows CEO Jason Robins to maintain approximately 90% of the voting power, despite institutional investors owning most of the economic interest in the company.
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