DraftKings 10-Q 7 May 21 2021 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2021	May 05, 2021
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Entity Registrant Name	DraftKings Inc.
Entity Interactive Data Current	Yes
Document Period End Date	Mar. 31, 2021
Entity File Number	001-38908
Entity Tax Identification Number	84-4052441
Entity Incorporation, State or Country Code	NV
Entity Address, Address Line One	222 Berkeley Street
Entity Address, Address Line Two	5th Floor
Entity Address, City or Town	Boston
Entity Address, State or Province	MA
Security Exchange Name	NASDAQ
Entity Address, Postal Zip Code	02116
City Area Code	617
Local Phone Number	986-6744
Entity Filer Category	Large Accelerated Filer
Trading Symbol	DKNG
Title of 12(b) Security	Class A Common Stock, $0.0001 par value
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Shell Company	false
Entity Current Reporting Status	Yes
Entity Central Index Key	0001772757
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1
Class A common stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		400,980,887
Class B common stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		393,013,951

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 2,818,128	$ 1,817,258
Cash reserved for users	305,732	287,718
Receivables reserved for users	24,036	30,249
Accounts receivable	48,359	44,522
Prepaid expenses and other current assets	15,226	14,558
Total current assets	3,211,481	2,194,305
Property and equipment, net	42,985	40,827
Intangible assets, net	532,077	555,930
Goodwill	612,479	569,603
Operating lease right-of-use assets	73,022	68,077
Equity method investment	2,802	2,955
Deposits and other non-current assets	8,305	7,632
Total assets	4,483,151	3,439,329
Current liabilities:
Accounts payable and accrued expenses	295,306	223,633
Liabilities to users	329,742	317,942
Operating lease liabilities, current portion	13,370	12,837
Total current liabilities	638,418	554,412
Convertible notes	1,247,113	0
Non-current operating lease liabilities	66,811	68,775
Warrant liabilities	90,862	65,444
Long-term income tax liability	70,296	72,066
Other long-term liabilities	48,421	47,287
Total liabilities	2,161,921	807,984
Commitments and contingent liabilities
Stockholder's equity (deficit):
Treasury stock, at cost; 6,855 and 6,807 shares as of March 31, 2021 and December 31, 2020, respectively	(291,908)	(288,784)
Additional paid-in capital	5,133,806	5,067,135
Accumulated deficit	(2,576,963)	(2,230,619)
Accumulated other comprehensive income	56,216	83,534
Total stockholders' equity (deficit)	2,321,230	2,631,345
Total liabilities and stockholders' equity (deficit)	4,483,151	3,439,329
Class A common stock
Stockholder's equity (deficit):
Common stock	40	40
Class B common stock
Stockholder's equity (deficit):
Common stock	$ 39	$ 39

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands	Mar. 31, 2021	Dec. 31, 2020
Treasury Stock, Shares	6,855	6,807
Class A common stock
Common shares, par value	$ 0.0001	$ 0.0001
Common shares, shares authorized	900,000	900,000
Common shares, shares issued	406,747	403,110
Common shares, shares outstanding	399,892	396,303
Class B common stock
Common shares, par value	$ 0.0001	$ 0.0001
Common shares, shares authorized	900,000	900,000
Common shares, shares issued	393,014	393,014
Common shares, shares outstanding	393,014	393,014

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Revenue	$ 312,276	$ 88,542
Cost of revenue	183,225	43,416
Sales and marketing	228,686	53,706
Product and technology	56,159	18,041
General and administrative	168,997	39,496
Loss from operations	(324,791)	(66,117)
Other income (expense):
Interest income (expense), net	985	(2,351)
Loss on remeasurement of warrant liabilities	(26,980)	0
Loss before income tax (benefit) provision and loss from equity method investment	(350,786)	(68,468)
Income tax (benefit) provision	(4,595)	9
Loss from equity method investment	153	203
Net Loss attributable to common shareholders	$ (346,344)	$ (68,680)
Loss per share attributable to common stockholders:
Basic and diluted	$ (0.87)	$ (0.37)

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
Net loss	$ (346,344)	$ (68,680)
Other comprehensive loss:
Foreign currency translation adjustments arising during period, net of nil tax	(27,318)	0
Comprehensive loss	$ (373,662)	$ (68,680)

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
Foreign currency translation adjustments, net of tax	$ 0	$ 0

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands	Ordinary SharesClass A common stock	Ordinary SharesClass B common stock	Additional Paid-in Capital	Accumulated Deficit	Accumulated Comprehensive Income	Treasury Stock Amount	Total
Balance at the beginning at Dec. 31, 2019	$ 18		$ 949,186	$ (998,784)			$ (49,580)
Balance at the beginning (in shares) at Dec. 31, 2019	184,626
Increase (Decrease) in Stockholders' Equity
Issuance of Series F preferred stock			11,000				11,000
Issuance of Series F preferred stock (in shares)	1,526
Equity consideration issued for acquisition							0
Exercise of stock options			467				467
Exercise of stock options (in shares)	456
Stock-based compensation expense			4,842				4,842
Foreign currency translation							0
Net loss				(68,680)			(68,680)
Balance at the end at Mar. 31, 2020	$ 18		965,495	(1,067,464)			(101,951)
Balance at the end (in shares) at Mar. 31, 2020	186,608
Balance at the beginning at Dec. 31, 2020	$ 40	$ 39	5,067,135	(2,230,619)	$ 83,534	$ (288,784)	2,631,345
Balance at the beginning (in shares) at Dec. 31, 2020	396,303	393,014
Increase (Decrease) in Stockholders' Equity
Purchase of capped call options			(123,970)				(123,970)
Restricted stock unit vesting (in shares)	178
Equity consideration issued for acquisition			29,399				29,399
Equity consideration issued for acquisition (in shares)	464
Shares issued for exercise of warrants			1,761				1,761
Shares issued for exercise of warrants (in shares)	138
Exercise of stock options			7,638				$ 7,638
Exercise of stock options (in shares)	2,857						3,035,000
Stock-based compensation expense			151,843				$ 151,843
Purchase of treasury stock						(3,124)	(3,124)
Purchase of treasury stock (in shares)	(48)
Foreign currency translation					(27,318)		(27,318)
Net loss				(346,344)			(346,344)
Balance at the end at Mar. 31, 2021	$ 40	$ 39	$ 5,133,806	$ (2,576,963)	$ 56,216	$ (291,908)	$ 2,321,230
Balance at the end (in shares) at Mar. 31, 2021	399,892	393,014

CONDENSED CONSOLIDATED STATEM_5

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Operating Activities:
Net loss	$ (346,344)	$ (68,680)
Adjustments to reconcile net loss to net cash flows used in operating activities:
Depreciation and amortization	28,193	4,704
Non-cash interest expense	112	2,583
Stock-based compensation expense	151,843	4,842
Loss from equity method investment	153	203
Loss on remeasurement of warrant liabilities	26,980	0
Deferred income taxes	(8,104)	9
Change in operating assets and liabilities, net of effect of Business Combination
Cash reserved for users	(18,014)	29,135
Receivables reserved for users	6,213	9,302
Accounts receivable	(4,180)	0
Prepaid expenses and other current assets	(519)	4,091
Deposits and other non-current assets	(1,527)	(411)
Operating leases, net	(239)	(88)
Accounts payable and accrued expenses	71,392	(2,410)
Other long-term liabilities	2,968	3,627
Long-term income tax liability	1,522	0
Liabilities to users	11,800	(37,669)
Net cash flows used in operating activities	(77,751)	(50,762)
Cash Flows from Investing Activities:
Purchases of property and equipment	(2,389)	(1,871)
Cash paid for internally developed software costs	(8,686)	(3,887)
Acquisition of gaming licenses	(305)	(571)
Cash paid for acquisition, net of cash acquired	(40,541)	0
Net cash flows used in investing activities	(51,921)	(6,329)
Financing Activities:
Proceeds from term notes, net	0	37,750
Proceeds from issuance of convertible notes, net	1,248,025	39,440
Purchase of capped call options	(123,970)	0
Proceeds from shares issued for warrants	199	0
Purchase of treasury stock	(3,124)	0
Proceeds from exercise of stock options	7,638	467
Net cash flows provided by financing activities	1,128,768	77,657
Effect of foreign exchange rates on cash and cash equivalents	1,774	0
Net increase in cash, cash equivalents and restricted cash	1,000,870	20,566
Cash and cash equivalents at the beginning of period	1,817,258	76,533
Cash and cash equivalents, end of period	2,818,128	97,099
Supplemental Disclosure of Noncash Investing and Financing Activities
Equity consideration issued to acquire SBTech	29,399	0
Increase in accounts payable and accrued expenses from property and equipment and internally developed software costs	680	0
Increase in accounts payable and accrued expenses from convertible notes financing costs	1,024	0
Decrease of accounts payable and accrued expenses from gaming licenses	(100)	(1,000)
Extinguishment of promissory notes for Series F Redeemable Convertible Preferred Stock	0	(11,000)
Supplemental Disclosure of Cash Activities
Cash paid for interest	$ 0	$ 80

Description of Business

Description of Business	3 Months Ended
	Mar. 31, 2021
Description of Business
Description of Business	1. Description of Business DraftKings Inc., a Nevada corporation (the “Company” or “DraftKings”), was incorporated in Nevada as DEAC NV Merger Corp., a wholly owned subsidiary of our legal predecessor, Diamond Eagle Acquisition Corp. (“DEAC”), a special purpose acquisition company. On April 23, 2020, DEAC consummated the transactions contemplated by the Business Combination Agreement (the “Business Combination”) dated December 22, 2019, as amended on April 7, 2020 and, in connection therewith, (i) DEAC merged with and into the Company, whereby the Company survived the merger and became the successor issuer to DEAC by operation of Rule 12g-3(a) promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), (ii) the Company changed its name to “DraftKings Inc.,” (iii) the Company acquired DraftKings Inc., a Delaware corporation (“Old DK”), by way of a merger and (iv) the Company acquired all of the issued and outstanding share capital of SBTech (Global) Limited (“SBTech”). Upon consummation of the preceding transactions, Old DK and SBTech became wholly owned subsidiaries of the Company. DraftKings is a digital sports entertainment and gaming company. The Company’s business-to-consumer (“B2C”) segment provides users with daily fantasy sports (“DFS”), sports betting (“Sportsbook”) and online casino (“iGaming”) products. The Company’s business-to-business (“B2B”) segment is involved in the design, development and licensing of sports betting and casino gaming software for its Sportsbook and casino gaming products. In May 2018, the Supreme Court (the “Court”) struck down on constitutional grounds the Professional and Amateur Sports Protection Act of 1992 (“PASPA”), a law that prohibited most states from authorizing and regulating sports betting. Since the Court’s decision, many states have legalized sports betting. As of March 31, 2021, the U.S. jurisdictions with statutes legalizing online sports betting 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, Virginia, Washington, Washington, D.C and West Virginia. A few jurisdictions have enacted laws authorizing sports betting in retail locations but have yet to begin operations in those jurisdictions. The jurisdictions with statutes legalizing online casinos are Delaware, Michigan, New Jersey, Pennsylvania and West Virginia. As of March 31, 2021, the Company operates online Sportsbooks in Colorado, Illinois, Indiana, Iowa, Michigan, New Hampshire, New Jersey, Oregon (B2B), Pennsylvania, Tennessee, Virginia and West Virginia and has retail Sportsbooks in Colorado, Illinois, Iowa, Mississippi, New Hampshire, New Jersey and New York. As of March 31, 2021 the Company offers iGaming products in Michigan, New Jersey, Pennsylvania and West Virginia. The Company also has arrangements in place with land-based casinos to expand operations into additional states upon the passing of the relevant legislation, the issuance of related regulations and the receipt of required licenses. The novel coronavirus (“COVID-19”) has adversely impacted global commercial activity, disrupted supply chains and contributed to significant volatility in financial markets. In 2020 and continuing into 2021, the COVID-19 pandemic adversely impacted many different industries. The ongoing COVID-19 pandemic could have a continued material adverse impact on economic and market conditions and trigger a period of global economic slowdown. The rapid development and fluidity of this situation precludes any prediction as to the extent and the duration of the impact of COVID-19. COVID-19 therefore presents material uncertainty and risk with respect to us and our performance and could affect our financial results in a materially adverse way. Since the start of the COVID-19 pandemic, the primary impacts to the Company have been the suspension, cancellation and rescheduling of sports seasons and sporting events. Beginning in March 2020 and continuing through the end of the second quarter of 2020, many sports seasons and sporting events, including the MLB regular season, domestic soccer leagues and European Cup competitions, the NBA regular season and playoffs, the NCAA college basketball tournament, the Masters golf tournament, and the NHL regular season and playoffs, were suspended or cancelled. The suspension of sports seasons and sporting events reduced customers’ use of, and spending on, the Company’s Sportsbook and DFS product offerings. Starting in the third quarter of 2020 and continuing into the fourth quarter of 2020, major professional sports leagues resumed their activities, many of which were held at limited or reduced capacity. MLB began its season after a three-month delay and also completed the World Series, the NHL resumed its season and completed the Stanley Cup Playoffs, the Masters golf tournament was held, most domestic soccer leagues resumed and several European cup competitions were held, and the NFL season began on its regular schedule. During this period, the NBA also resumed its season, completed the NBA Finals and commenced its 2020-2021 season. In the first quarter of 2021, many sports seasons continued and multiple sporting events were held as planned, including the NFL regular season, the NFL Playoffs and Superbowl LV, the NBA regular season, the NHL regular season, the NASCAR Cup Series, various NCAA football bowl games and the NCAA college basketball season and tournament. The continued return of major sports and sporting events generated significant user interest and activity in our Sportsbook and DFS product offerings. However, the possibility remains that sports seasons and sporting events may be suspended, cancelled or rescheduled due to COVID-19 outbreaks. The suspension and alteration of sports seasons and sporting events earlier in 2020 reduced customers’ use of, and spending on, the Company’s Sportsbook and DFS product offerings and caused the Company to issue refunds for canceled events. Additionally, while retail casinos where the Company has branded Sportsbooks have reopened, they continue to operate with reduced capacity. The Company’s revenues vary based on sports seasons and sporting events amongst other things, and cancellations, suspensions or alterations resulting from COVID-19 have the potential to adversely affect its revenue, possibly materially. However, the Company’s product offerings that do not rely on sports seasons and sporting events, such as iGaming, may partially offset this adverse impact on revenue. DraftKings is also innovating to develop more products that do not rely on traditional 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 have an adverse effect on demand for the Company’s product offerings, reducing cash flows and revenues, and thereby materially harming the Company’s business, financial condition and results of operations. In addition, a recurrence of COVID-19 cases or an emergence of additional variants or strains of COVID-19 could cause other widespread or more severe impacts depending on where infection rates are highest. As steps taken to mitigate the spread of COVID-19 have necessitated a shift away from a traditional office environment for many employees, the Company has business continuity programs in place to ensure that employees are safe and that the business continues to function with minimal disruptions to normal work operations while employees work remotely. The Company will continue to monitor developments relating to disruptions and uncertainties caused by COVID-19.

Summary of Significant Accounti

Summary of Significant Accounting Policies and Practices	3 Months Ended
	Mar. 31, 2021
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 These unaudited condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) and accounting principles generally accepted in the United States (“U.S. GAAP”) for interim reporting. Accordingly, certain notes or other information that are normally required by U.S. GAAP have been omitted if they substantially duplicate the disclosures contained in the Company’s annual audited consolidated financial statements. Accordingly, the unaudited condensed consolidated financial statements should be read in connection with the Company’s audited financial statements and related notes as of and for the fiscal year ended December 31, 2020, which are included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2020 as filed with the SEC on February 26, 2021 and as amended by the Form 10-K/A filed with the SEC on May 3, 2021. The accompanying unaudited condensed consolidated financial statements are unaudited; however, in the opinion of management, they include all normal and recurring adjustments necessary for a fair presentation of the Company’s unaudited condensed consolidated financial statements for the periods presented. Results of operations reported for interim periods are not necessarily indicative of results for the entire year, due to seasonal fluctuations in the Company’s revenue as a result of timing of the various sports seasons, sporting events and other factors. As the Company completed its acquisition of SBTech on April 23, 2020, the presented financial information for the three months ended March 31, 2021 includes the financial information and activities for SBTech; whereas, the financial information for the three months ended March 31, 2020 excludes the financial information and activities for SBTech. The accompanying unaudited condensed consolidated financial statements include the accounts and operations of the Company. All intercompany balances and transactions have been eliminated. Certain amounts from a prior period, which are not material, have been reclassified to conform with the current period presentation. Cash and cash equivalents Cash and cash equivalents consist of highly liquid, unrestricted savings, checking and other bank accounts. The Company also utilizes short-term certificates of deposit and money market funds, each with original maturities of three months or less. Recently Adopted Accounting Pronouncements ​ In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-06, Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40) (“ASU 2020-06”) In December 2019, the FASB issued ASU 2019-12, Income Taxes—Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes

Business Combinations

Business Combinations	3 Months Ended
	Mar. 31, 2021
Business Combinations
Business Combinations	3. Business Combinations On March 24, 2021, the Company acquired 100% of the equity of Vegas Sports Information Network, Inc. (“VSiN”). The following summarizes the consideration transferred at closing for the VSiN acquisition: ​ ​ ​ ​ ​ Cash consideration ​ $ 40,599 Share consideration (1) ​ 29,399 Total consideration ​ $ 69,998 (1) Represents the issuance of 0.5 million shares of the Company’s Class A common stock at a fair value of $63.32 per share to the former stockholders of VSiN. ​ The acquired assets and assumed liabilities of VSiN were recorded at their estimated fair values. The purchase price allocation is preliminary and as additional information becomes available, we may further revise the preliminary purchase price allocation during the remainder of the measurement period, which will not exceed 12 months from the closing of the acquisition. Measurement period adjustments will be recognized in the reporting period in which the adjustment amounts are determined. Any such adjustments may be material. The purchase price of the VSiN acquisition was allocated on a preliminary basis as follows: ​ ​ ​ ​ ​ Operating lease right-of-use assets $ 6,120 Intangible assets ​ 14,628 Other assets ​ 4,516 Liabilities ​ (7,910) Goodwill ​ 52,644 Total ​ $ 69,998 ​ Goodwill represents the excess of the gross considerations transferred over the fair value of the underlying net assets acquired and liabilities assumed. Goodwill associated with the VSiN acquisition is assigned as of the acquisition date to the Company’s Media reporting unit. Goodwill recognized is not deductible for local tax purposes. The intangible assets acquired as part of the VSiN acquisition were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-Average ​ ​ Fair Value ​ Useful Life (in years) ​ ​ ​ ​ Developed technology - software ​ $ 558 3.0 Customer relationships ​ 11,170 6.0 Trademarks and trade names ​ 2,900 6.0 Total ​ $ 14,628 ​ As VSiN’s financial results are not material to the Company’s condensed consolidated financial statements, the Company has elected to not include pro forma results.

Intangible Assets and Goodwill

Intangible Assets and Goodwill	3 Months Ended
	Mar. 31, 2021
Intangible Assets and Goodwill
Intangible Assets and Goodwill	4. Intangible Assets and Goodwill Intangible Assets The Company has the following intangible assets, net as of March 31, 2021: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted- ​ ​ ​ ​ ​ ​ ​ ​ Average ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Remaining ​ Gross ​ ​ ​ ​ ​ ​ ​ ​ Amortization ​ Carrying ​ Accumulated ​ ​ ​ ​ Period Amount Amortization Net Developed technology 7.1 years ​ $ 420,349 ​ $ (49,121) ​ $ 371,228 Internally developed software ​ 80,727 ​ (37,068) ​ 43,659 Gaming licenses ​ 23,851 ​ (8,397) ​ 15,454 Trademarks and tradenames 3.9 years ​ 9,215 ​ (1,565) ​ 7,650 Customer relationships 4.3 years ​ 113,186 ​ (19,100) ​ 94,086 Intangible Assets, net ​ ​ ​ $ 647,328 ​ $ (115,251) ​ $ 532,077 ​ The Company has the following intangible assets, net as of December 31, 2020: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted- ​ ​ ​ ​ ​ ​ Average ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Remaining ​ Gross ​ ​ ​ ​ ​ ​ ​ ​ Amortization ​ Carrying ​ Accumulated ​ ​ ​ ​ ​ ​ Period ​ Amount ​ Amortization ​ Net Developed technology ​ 7.3 years ​ $ 439,624 ​ $ (37,704) ​ $ 401,920 Internally developed software ​ 2.3 years ​ 72,268 ​ (33,179) ​ 39,089 Gaming licenses ​ 3.5 years ​ 23,685 ​ (6,354) ​ 17,331 Trademarks and tradenames ​ 2.8 years ​ 6,537 ​ (1,123) ​ 5,414 Customer relationships ​ 4.3 years ​ 106,836 ​ (14,660) ​ 92,176 Intangible Assets, net ​ ​ ​ ​ $ 648,950 ​ $ (93,020) ​ $ 555,930 ​ Amortization expense was $25.2 million and $3.3 million for the three months ended March 31, 2021 and 2020 respectively. Goodwill The changes in the carrying amount of goodwill for the three months ended March 31, 2021 by reporting unit are: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ B2C B2B Media Total Balance as of December 31, 2020 ​ $ 353,083 ​ $ 216,520 ​ $ — ​ $ 569,603 Goodwill resulting from acquisitions* ​ — ​ — ​ ​ 52,644 ​ 52,644 Cumulative translation adjustment ​ — ​ (9,768) ​ ​ — ​ (9,768) Balance as of March 31, 2021 ​ $ 353,083 ​ $ 206,752 ​ $ 52,644 ​ $ 612,479 * =

Current and Long-term Liabiliti

Current and Long-term Liabilities	3 Months Ended
	Mar. 31, 2021
Current and Long-term Liabilities
Current and Long-term Liabilities	5. Current and Long-term Liabilities Convertible Notes In March 2021, the Company issued zero-coupon convertible senior notes in an aggregate principal amount of $1,265.0 million, which includes proceeds from the full exercise of the over-allotment option (collectively the “Convertible Notes”). In connection with the issuance of the Convertible Notes, the Company incurred $17.0 million of lender fees and $1.0 million of debt financing costs. The Convertible Notes represent senior unsecured obligations of the Company. The Convertible Notes mature on March 15, 2028, subject to earlier conversion, redemption or repurchase. The Convertible Notes are convertible at an initial conversion rate of 10.5430 shares of the Company’s Class A common stock per $1,000 principal amount of Convertible Notes, which is equivalent to an initial conversion price of approximately $94.85 per share of Class A common stock. The conversion rate is subject to adjustment upon the occurrence of certain specified events and includes a make-whole adjustment upon early conversion in connection with a make-whole fundamental change (as defined within the indenture agreement). Prior to September 15, 2027, the Convertible Notes will be convertible only upon satisfaction of certain conditions and during certain periods, and thereafter, at any time until the close of business on the second scheduled trading day immediately preceding the maturity date. The Company will satisfy any conversion election by paying or delivering, as the case may be, cash, shares of Class A common stock or a combination of cash and shares of Class A common stock. During the three months ended March 31, 2021, the conditions allowing holders of the Convertible Notes to convert were not met. In connection with the pricing of the Convertible Notes and the exercise of the option to purchase additional notes, the Company entered into a privately negotiated capped call transaction (“Capped Call Transactions”). The Capped Call Transactions have a strike price of $94.85 per share, subject to certain adjustments, which corresponds to the initial conversion price of the Convertible Notes. The Capped Call Transactions have an initial cap price of $135.50 per share, subject to certain adjustments. The Capped Call Transactions are expected generally to reduce potential dilution to the Company's Class A common stock upon any conversion of Convertible Notes. As the transaction qualifies for equity classification, the net cost of $124.0 million incurred in connection with the Capped Call Transactions was recorded as a reduction to additional paid-in capital on the Company's consolidated balance sheet during the quarter ended March 31, 2021. Revolving Line of Credit In October 2016, the Company entered into an amended and restated loan and security agreement with Pacific Western Bank, which was most recently amended in September 2020 (as amended, the “Credit Agreement”). The Credit Agreement provides a revolving line of credit of up to $60.0 million. The Credit Agreement has a maturity date of March 1, 2022. Borrowings under the Credit Agreement bear interest at a variable annual rate equal to the greater of (i) 1.00% above the prime rate then in effect and (ii) 6.50%, and the Credit Agreement requires monthly, interest-only payments. In addition, the Company is required to pay quarterly in arrears a fee equal to 0.25% per annum of the unused portion of the revolving line of credit. As of March 31, 2021 and December 31, 2020, the Credit Agreement provided a revolving line of credit of up to $60.0 million. There was no principal outstanding as of March 31, 2021 or December 31, 2020. Net facility available from the Credit Agreement as of March 31, 2021 and December 31, 2020 totaled $55.8 million, which, in each case, excludes the letters of credit outlined in Note 12. The Company is also subject to certain affirmative and negative covenants until maturity. In connection with the issuance of the Convertible Notes and the entry into the Capped Call Transactions, the Company obtained a waiver from Pacific Western Bank for any breach of the credit agreement that would have resulted from entering into these financing transactions. The Company obtained a waiver from Pacific Western Bank for any breach of the credit agreement that would have resulted from its Form 10-K/A filed with the SEC on May 3, 2021. Indirect Taxes Taxation of e-commerce is becoming more prevalent and could negatively affect the Company’s business as it pertains to DFS and its users. The ultimate impact of indirect taxes on the Company’s business is uncertain, as is the period required to resolve this uncertainty. The Company’s estimated contingent liability for indirect taxes represents the Company’s best estimate of tax liability in jurisdictions in which the Company believes taxation is probable. The Company frequently reevaluates its tax positions for appropriateness. Indirect tax statutes and regulations are complex and subject to differences in application and interpretation. Tax authorities may impose indirect taxes on Internet-delivered activities based on statutes and regulations which, in some cases, were established prior to the advent of the Internet and do not apply with certainty to the Company’s business. The Company’s estimated contingent liability for indirect taxes may be materially impacted by future audit results, litigation and settlements, should they occur. The Company’s activities by jurisdiction may vary from period to period, which could result in differences in the applicability of indirect taxes from period to period. As of March 31, 2021 and December 31, 2020, the Company’s estimated contingent liability for indirect taxes was $47.3 million and $45.9 million, respectively. The estimated contingent liability for indirect taxes is recorded within other long-term liabilities on the consolidated balance sheets and general and administrative expenses on the consolidated statements of operations. Warrant Liabilities As part of DEAC’s initial public offering on May 14, 2019, DEAC issued 13.3 million warrants each of which entitles the holder to purchase one share of Class A common stock at an exercise price of $11.50 per share (the “Public Warrants”). Simultaneously with the closing of the IPO, DEAC completed the private sale of 6.3 million warrants to DEAC’s sponsor (the “Private Warrants”). As of March 31, 2021, there were no Public Warrants outstanding. The fair value of the Company’s warrant liability as of March 31, 2021 was measured utilizing a binomial lattice model (level 2). As of March 31, 2021, 1.8 million Private Warrants remained outstanding at a fair value of $90.9 million. Due to fair value changes throughout the three months ended March 31, 2021, the Company recorded a loss on remeasurement of warrant liabilities of $27.0 million. ​

Revenue Recognition

Revenue Recognition	3 Months Ended
	Mar. 31, 2021
Revenue Recognition
Revenue Recognition	6. Revenue Recognition Deferred Revenue ​ The Company included deferred revenue within accounts payable and accrued expenses and liabilities to users in the consolidated balance sheets. The deferred revenue balances were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended March 31, ​ 2021 2020 Deferred revenue, beginning of the period ​ $ 30,627 ​ $ 20,760 Deferred revenue, end of the period ​ 41,849 ​ 24,094 Revenue recognized in the period from amounts included in deferred revenue at the beginning of the period ​ 24,493 ​ 5,470 ​ 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 its consolidated balance sheets. ​ Revenue Disaggregation ​ Disaggregation of revenue for the three months ended March 31, 2021 and 2020 is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended March 31, ​ 2021 2020 Online gaming ​ $ 272,661 ​ $ 83,705 Gaming software ​ 31,429 ​ ​ — Other ​ 8,186 ​ 4,837 Total Revenue ​ $ 312,276 ​ $ 88,542 ​ The following table presents the Company’s revenue by geographic region for the periods indicated: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended March 31, ​ 2021 2020 United States ​ $ 280,117 ​ $ 90,810 International ​ 32,159 ​ (2,268) Total Revenue ​ $ 312,276 ​ $ 88,542 ​

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Mar. 31, 2021
Stock-Based Compensation
Stock-Based Compensation	7. 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 one two ​ The following table shows stock option activity for the three months ended March 31, 2021: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted Weighted ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Average ​ Average ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Exercise ​ FMV ​ ​ ​ ​ Price of ​ of ​ Time-based PSP LTIP Total Options RSUs ​ ​ Options ​ RSUs ​ Options ​ RSUs ​ Options ​ RSUs ​ ​ ​ ​ ​ ​ ​ ​ Outstanding at December 31, 2020 20,519 3,548 3,023 907 13,854 12,800 54,651 $ 3.57 $ 47.01 Granted 150 1,276 — 548 — 5,682 7,656 ​ 60.91 ​ 53.53 Exercised options / vested RSUs (2,049) (178) (287) — (521) — (3,035) ​ 2.67 ​ 33.28 Forfeited (41) (29) (1) — — (14) (85) ​ 4.19 ​ 41.02 Outstanding at March 31, 2021 18,579 4,617 2,735 1,455 13,333 18,468 59,187 ​ $ 3.41 $ 49.09 ​ As of March 31, 2021, total unrecognized stock-based compensation expense of $1,087.1 million related to granted and unvested share-based compensation arrangements is expected to be recognized over a weighted-average period of 2.1 years. The following table shows stock compensation expense for the three months ended March 31, 2021 and 2020: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended March 31, 2021 Three months ended March 31, 2020 ​ Options ​ RSUs ​ Total Options ​ RSUs ​ Total Time Based ​ $ 2,433 ​ $ 14,268 ​ $ 16,701 ​ $ 1,634 ​ $ — ​ $ 1,634 PSP ​ — ​ ​ 16,314 ​ 16,314 ​ 1,633 ​ ​ — ​ 1,633 LTIP ​ — ​ ​ 118,828 ​ 118,828 ​ 1,575 ​ ​ — ​ 1,575 Total ​ $ 2,433 ​ $ 149,410 ​ $ 151,843 ​ $ 4,842 ​ $ — ​ $ 4,842 ​

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2021
Income Taxes
Income Taxes	8. Income Taxes Three months ended March 31, 2021 and 2020 is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended March 31, ​ 2021 2020 (Benefit) provision for income taxes ​ $ (4,595) ​ $ 9 ​ The effective tax rates for the three months ended March 31, 2021 and 2020 were 1.3% and (.01)%, respectively. The difference between the Company’s effective tax rates for the 2021 and 2020 periods and the U.S. statutory tax rate of 21% was primarily due to a full valuation allowance related to the Company’s net US deferred tax assets, offset partially by current state tax and current foreign tax. Additionally, the Company recorded a discrete income tax benefit of $6.8 million during the quarter, which is attributable to a non-recurring partial release of the Company's U.S. valuation allowance recorded with VSiN's preliminary purchase price accounting. 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.

Segment Information

Segment Information	3 Months Ended
	Mar. 31, 2021
Segment Information
Segment Information	9. Segment Information The Company operates its business and reports its results through two operating and reportable Segment Reporting Operating segments are components of the Company for which separate discrete financial information is available to and evaluated regularly by the chief operating decision maker (“CODM”), who is the Company’s Chief Executive Officer, in making decisions regarding resource allocation and assessing performance. The CODM assesses a combination of metrics such as revenue and Adjusted EBITDA to evaluate the performance of each operating and reportable segment. 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: Summarized financial information for the Company’s segments is shown in the following tables: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended March 31, ​ 2021 2020 Revenue: ​ ​ B2C ​ $ 280,847 ​ $ 88,542 B2B ​ 31,429 ​ — Total revenue ​ 312,276 ​ 88,542 ​ ​ ​ ​ ​ ​ ​ Adjusted EBITDA: ​ ​ B2C ​ (141,355) ​ (49,460) B2B ​ 2,093 ​ — Total adjusted EBITDA ​ (139,262) ​ (49,460) Adjusted for: ​ ​ Depreciation and amortization ​ 28,193 ​ 4,704 Interest (income) expense, net ​ (985) ​ 2,351 Income tax (benefit) provision ​ (4,595) ​ 9 Stock-based compensation ​ 151,843 ​ 4,842 Transaction-related costs ​ 3,023 ​ 5,652 Litigation, settlement and related costs ​ 622 ​ 1,330 Loss on remeasurement of warrant liabilities ​ ​ 26,980 ​ ​ — Other non-recurring costs and special project costs ​ 1,848 ​ 129 Non-operating costs ​ 153 ​ 203 Net Loss attributable to common shareholders ​ $ (346,344) ​ $ (68,680) ​ Due to the timing of the Business Combination, the three-month period ended March 31, 2020 excludes B2B/SBTech activity.

Loss Per Share

Loss Per Share	3 Months Ended
	Mar. 31, 2021
Loss Per Share
Loss Per Share	10. 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 March 31, ​ 2021 2020 Net loss ​ $ (346,344) ​ $ (68,680) Basic and diluted weighted-average common shares outstanding ​ 397,621 ​ 184,863 Loss per share attributable to common stockholders: ​ ​ Basic and diluted ​ $ (0.87) ​ $ (0.37) ​ For the periods presented, the following securities were not required to be included in the computation of diluted shares outstanding (calculated on a gross settlement or a full conversion basis): ​ ​ ​ ​ ​ ​ ​ Three months ended March 31, ​ ​ 2021 ​ 2020 Warrants 1,812 182 Stock options and RSUs 59,187 47,410 Convertible notes ​ 13,337 ​ 11,186 Total 74,336 58,778 ​

Related-Party Transactions

Related-Party Transactions	3 Months Ended
	Mar. 31, 2021
Related-Party Transactions
Related-Party Transactions	11. Related-Party Transactions Media Purchase Agreement (“MPA”) In July 2015, Old DK entered into an MPA with a related party for various media placements from 2015 through 2018. The MPA was amended to extend through 2021. The annual commitment for calendar years 2017 through 2021 was $15.0 million per year, plus an additional contingent commitment of $5.0 million per year. The contingent commitment relates to the Company’s allocation of its non-integration advertising with other advertisers. Effective January 2019, the future minimum commitments related to the MPA were reduced to $15.0 million in the aggregate through December 31, 2021 (equivalent to $5.0 million per year) and the contingent commitment was removed. If the Company satisfies its $15.0 million commitment prior to December 31, 2021, the MPA will expire unless the Company elects to extend the MPA through the following NFL season with no required minimum. The Company recorded expense of $0.0 million and $3.5 million related to the MPA for the three months ended March 31, 2021 and 2020, respectively, in sales and marketing expenses in the consolidated statements of operations. 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. For the three months ended March 31, 2021 and 2020, Old DK incurred $0.0 million and $0.6 million, respectively, of fees with the Private Placement Agent. Receivables from Equity Method Investment The Company provides office space and general operational support to DKFS, LLC, an equity-method affiliate. The operational support is primarily in the form of general and administrative services. As of March 31, 2021 and December 31, 2020, the Company had $1.3 million and $1.1 million, respectively, of receivables from DKFS, LLC related to those services and expenses to be reimbursed to the Company, which are included within non-current assets in the consolidated balance sheets. In the first quarter of 2021, the Company committed to invest up to $17.0 million into DBDK Venture Fund I, LP, a Delaware limited partnership and a subsidiary of DKFS LLC. Transactions with a Shareholder and their Immediate Family Members As of March 31, 2021 and December 31, 2020, the Company had $1.9 million of receivables from a shareholder and director included in other receivables. In addition, the Company had $1.4 million in sales and $0.2 million of lease expenses to entities related to an immediate family member of the shareholder for the three months ended March 31, 2021. The Company had an associated accounts receivable balance of $0.5 million as of March 31, 2021 and as of December 31, 2020 included in accounts receivable in its consolidated balance sheets. There were no related party transactions with the shareholder or their immediate family members for the three months ended March 31, 2020.

Leases, Commitments and Conting

Leases, Commitments and Contingencies	3 Months Ended
	Mar. 31, 2021
Leases, Commitments and Contingencies
Leases, Commitments and Contingencies	12. Leases, Commitments and Contingencies Leases The Company leases corporate office facilities, data centers, and motor vehicles under operating lease agreements. The Company’s lease agreements have terms not exceeding ten years. The components of lease expense are as follows: ​ ​ ​ ​ ​ ​ ​ ​ Three months ended March 31, ​ 2021 2020 Operating lease cost 4,133 2,365 Short term lease cost 426 579 Variable lease cost 701 1,076 Sublease income (111) (410) Total lease cost 5,149 3,610 ​ Other information related to leases are as follows: ​ ​ ​ ​ ​ ​ ​ ​ Three months ended March 31, ​ 2021 2020 ​ ​ ​ ​ ​ Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 4,378 2,305 Right-of-use assets obtained in exchange for new operating lease liabilities 8,790 132 ​ The weighted-average remaining lease term and weighted-average discount rate for the Company’s operating leases were 6.4 years and 6.5% as of March 31, 2021. The Company calculated the weighted-average discount rates using incremental borrowing rates, which equal the rates of interest that it would pay to borrow funds on a fully collateralized basis over a similar term. Maturity of lease liabilities are as follows: ​ ​ ​ ​ ​ ​ Years ending ​ ​ December 31, From April 1, 2021 to December 31, 2021 ​ $ 13,463 2022 ​ 16,609 2023 ​ 15,475 2024 ​ 12,965 2025 ​ 11,338 Thereafter ​ ​ 28,521 Total undiscounted future cash flows ​ ​ 98,371 Less: Imputed interest ​ (18,190) Present value of undiscounted future cash flows ​ $ 80,181 ​ 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 April 1, 2021 to December 31, 2021 ​ $ 160,525 2022 ​ 168,325 2023 ​ 149,129 2024 ​ 126,876 2025 ​ 122,450 Thereafter ​ 309,900 Total ​ $ 1,037,205 * The above commitments include $430.6 million of future expected contractual obligations to a media company as part of a multi-year content integration agreement. ​ Contingencies From time to time, and in the ordinary course of business, the Company may be subject to certain claims, charges and litigation concerning matters arising in connection with the conduct of the Company’s business activities. In Re: Daily Fantasy Sports Litigation (Multi-District Litigation) Between late 2015 and early 2016, certain individuals who allegedly registered and competed in daily sports fantasy contests on our and FanDuel’s websites, and their family members, filed numerous actions (primarily purported class actions) against us, FanDuel, and other related parties in courts across the United States. In February 2016, these actions were consolidated in a multi-district litigation in the U.S. District Court for the District of Massachusetts. The plaintiffs asserted 27 claims arising under both state and federal law against the DFS defendants. The plaintiffs’ claims against us generally fall into four categories: (1) the Company’s online daily fantasy sports contests constitute illegal gambling; (2) the Company promulgated false or misleading advertisements that emphasized the ease of play and likelihood of winning; (3) the Company induced consumers to lose money through a deceptive bonus program; and (4) the Company allowed our employees to participate in competitors’ fantasy sports contests using non-public information, which gave such employees an unfair advantage over other contestants. The plaintiffs seek money damages, equitable relief, and disgorgement of gains against the Company. DraftKings intend to vigorously defend this case. If the plaintiffs obtain a judgment in their favor in this matter, the Company could be subject to substantial damages and it could be restricted from offering DFS contests in certain states. The Company has established an accrual for this matter, but it cannot provide any assurance as to the outcome of this lawsuit. Despite the potential for significant damages, the Company does not believe, based on currently available information, that the outcome of this proceeding will have a material adverse effect on DraftKings’ financial condition, although the outcome could be material to DraftKings’ operating results for any particular period, depending, in part, upon the operating results for such period. 1,000 Mass Arbitration Demands Filed by One Law Firm On October 21, 2019, a law firm filed 1,000 “mass arbitrations” against the Company with the American Arbitration Association (“AAA”) on behalf of purported DraftKings users that assert claims similar to those in the multi-district litigation described above. After the law firm filed the 1,000 “mass arbitrations,” the AAA informed DraftKings in writing that it would close their files on, and decline to administer, the 1,000 “mass arbitrations” unless the Company waived two provisions in its terms of use and that the parties would then be free to bring their claims in court. The Company elected not to waive the subject terms of use provisions. On November 6, 2020 the law firm filed a complaint against DraftKings in Massachusetts Superior Court (Suffolk County), entitled Aaron Abramson, et al. v. DraftKings Abramson Abramson Interactive Games LLC On June 14, 2019, Interactive Games LLC (“IG”) filed suit against the Company in the U.S. District Court for the District of Delaware, alleging that our Daily Fantasy Sports product offering infringes two patents and the Company’s Sportsbook product offering infringes two additional patents. DraftKings intends to vigorously defend this case. In the event that a court ultimately determines that the Company is infringing the asserted patents, it may be subject to substantial damages, which may include treble damages and/or an injunction that could require the Company to modify certain features that we currently offer. The Company cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages. The Company also cannot provide an estimate of the possible loss or range of loss. Internal Revenue Service The Company is currently under Internal Revenue Service audit for prior tax years, with the primary unresolved issues relating to excise taxation of fantasy sports contests and informational reporting and withholding. The final resolution of that audit, and other audits or litigation, may differ from the amounts recorded in these consolidated financial statements and may materially affect the Company’s consolidated financial statements in the period or periods in which that determination is made. Letters of Credit In connection with the Credit Agreement with Pacific Western Bank, the Company has entered into several letters of credit totaling $4.2 million as of March 31, 2021 and December 31, 2020 for the Company’s leases of office space.

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2021
Subsequent Events
Subsequent Events	13. Subsequent Events In April 2021, the Company acquired Blue Ribbon Software Ltd. (“Blue Ribbon”) for $18.3 million of cash and $3.7 million in the Company’s class A common stock. Blue Ribbon is a leading global jackpot and gamification company that provides platform-agnostic, real-time gamification tools that allow for fully customizable jackpot promotions. The Company is currently in process of finalizing the preliminary accounting for this transaction and expects to complete its preliminary accounting of the assets acquired and liabilities assumed by the end of the second quarter of 2021.

Significant Accounting Policies

Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2021
Summary of Significant Accounting Policies and Practices
Basis of Presentation and Principles of Consolidation	Basis of Presentation and Principles of Consolidation These unaudited condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) and accounting principles generally accepted in the United States (“U.S. GAAP”) for interim reporting. Accordingly, certain notes or other information that are normally required by U.S. GAAP have been omitted if they substantially duplicate the disclosures contained in the Company’s annual audited consolidated financial statements. Accordingly, the unaudited condensed consolidated financial statements should be read in connection with the Company’s audited financial statements and related notes as of and for the fiscal year ended December 31, 2020, which are included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2020 as filed with the SEC on February 26, 2021 and as amended by the Form 10-K/A filed with the SEC on May 3, 2021. The accompanying unaudited condensed consolidated financial statements are unaudited; however, in the opinion of management, they include all normal and recurring adjustments necessary for a fair presentation of the Company’s unaudited condensed consolidated financial statements for the periods presented. Results of operations reported for interim periods are not necessarily indicative of results for the entire year, due to seasonal fluctuations in the Company’s revenue as a result of timing of the various sports seasons, sporting events and other factors. As the Company completed its acquisition of SBTech on April 23, 2020, the presented financial information for the three months ended March 31, 2021 includes the financial information and activities for SBTech; whereas, the financial information for the three months ended March 31, 2020 excludes the financial information and activities for SBTech. The accompanying unaudited condensed consolidated financial statements include the accounts and operations of the Company. All intercompany balances and transactions have been eliminated. Certain amounts from a prior period, which are not material, have been reclassified to conform with the current period presentation.
Cash and cash equivalents	Cash and cash equivalents Cash and cash equivalents consist of highly liquid, unrestricted savings, checking and other bank accounts. The Company also utilizes short-term certificates of deposit and money market funds, each with original maturities of three months or less.
Recently Adopted Accounting Pronouncements	Recently Adopted Accounting Pronouncements ​ In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-06, Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40) (“ASU 2020-06”) In December 2019, the FASB issued ASU 2019-12, Income Taxes—Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes

Business Combinations (Tables)

Business Combinations (Tables)	3 Months Ended
	Mar. 31, 2021
Business Combinations
Summary of consideration transferred at Closing	On March 24, 2021, the Company acquired 100% of the equity of Vegas Sports Information Network, Inc. (“VSiN”). The following summarizes the consideration transferred at closing for the VSiN acquisition: ​ ​ ​ ​ ​ Cash consideration ​ $ 40,599 Share consideration (1) ​ 29,399 Total consideration ​ $ 69,998 (1) Represents the issuance of 0.5 million shares of the Company’s Class A common stock at a fair value of $63.32 per share to the former stockholders of VSiN. ​
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	​ ​ ​ ​ ​ Operating lease right-of-use assets $ 6,120 Intangible assets ​ 14,628 Other assets ​ 4,516 Liabilities ​ (7,910) Goodwill ​ 52,644 Total ​ $ 69,998
Summary of intangible assets	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-Average ​ ​ Fair Value ​ Useful Life (in years) ​ ​ ​ ​ Developed technology - software ​ $ 558 3.0 Customer relationships ​ 11,170 6.0 Trademarks and trade names ​ 2,900 6.0 Total ​ $ 14,628

Intangible Assets and Goodwill

Intangible Assets and Goodwill (Tables)	3 Months Ended
	Mar. 31, 2021
Intangible Assets and Goodwill
Summary of intangible assets other than goodwill	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted- ​ ​ ​ ​ ​ ​ ​ ​ Average ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Remaining ​ Gross ​ ​ ​ ​ ​ ​ ​ ​ Amortization ​ Carrying ​ Accumulated ​ ​ ​ ​ Period Amount Amortization Net Developed technology 7.1 years ​ $ 420,349 ​ $ (49,121) ​ $ 371,228 Internally developed software ​ 80,727 ​ (37,068) ​ 43,659 Gaming licenses ​ 23,851 ​ (8,397) ​ 15,454 Trademarks and tradenames 3.9 years ​ 9,215 ​ (1,565) ​ 7,650 Customer relationships 4.3 years ​ 113,186 ​ (19,100) ​ 94,086 Intangible Assets, net ​ ​ ​ $ 647,328 ​ $ (115,251) ​ $ 532,077 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted- ​ ​ ​ ​ ​ ​ Average ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Remaining ​ Gross ​ ​ ​ ​ ​ ​ ​ ​ Amortization ​ Carrying ​ Accumulated ​ ​ ​ ​ ​ ​ Period ​ Amount ​ Amortization ​ Net Developed technology ​ 7.3 years ​ $ 439,624 ​ $ (37,704) ​ $ 401,920 Internally developed software ​ 2.3 years ​ 72,268 ​ (33,179) ​ 39,089 Gaming licenses ​ 3.5 years ​ 23,685 ​ (6,354) ​ 17,331 Trademarks and tradenames ​ 2.8 years ​ 6,537 ​ (1,123) ​ 5,414 Customer relationships ​ 4.3 years ​ 106,836 ​ (14,660) ​ 92,176 Intangible Assets, net ​ ​ ​ ​ $ 648,950 ​ $ (93,020) ​ $ 555,930
Summary of changes in the carrying amount of goodwill	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ B2C B2B Media Total Balance as of December 31, 2020 ​ $ 353,083 ​ $ 216,520 ​ $ — ​ $ 569,603 Goodwill resulting from acquisitions* ​ — ​ — ​ ​ 52,644 ​ 52,644 Cumulative translation adjustment ​ — ​ (9,768) ​ ​ — ​ (9,768) Balance as of March 31, 2021 ​ $ 353,083 ​ $ 206,752 ​ $ 52,644 ​ $ 612,479 * =

Revenue Recognition (Tables)

Revenue Recognition (Tables)	3 Months Ended
	Mar. 31, 2021
Revenue Recognition
Summary of deferred revenue balances	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended March 31, ​ 2021 2020 Deferred revenue, beginning of the period ​ $ 30,627 ​ $ 20,760 Deferred revenue, end of the period ​ 41,849 ​ 24,094 Revenue recognized in the period from amounts included in deferred revenue at the beginning of the period ​ 24,493 ​ 5,470
Summary of disaggregation of revenue	​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended March 31, ​ 2021 2020 Online gaming ​ $ 272,661 ​ $ 83,705 Gaming software ​ 31,429 ​ ​ — Other ​ 8,186 ​ 4,837 Total Revenue ​ $ 312,276 ​ $ 88,542
Summary of Company's revenue by geographic region	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended March 31, ​ 2021 2020 United States ​ $ 280,117 ​ $ 90,810 International ​ 32,159 ​ (2,268) Total Revenue ​ $ 312,276 ​ $ 88,542

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2021
Stock-Based Compensation
Summary of stock option activity	The following table shows stock option activity for the three months ended March 31, 2021: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted Weighted ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Average ​ Average ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Exercise ​ FMV ​ ​ ​ ​ Price of ​ of ​ Time-based PSP LTIP Total Options RSUs ​ ​ Options ​ RSUs ​ Options ​ RSUs ​ Options ​ RSUs ​ ​ ​ ​ ​ ​ ​ ​ Outstanding at December 31, 2020 20,519 3,548 3,023 907 13,854 12,800 54,651 $ 3.57 $ 47.01 Granted 150 1,276 — 548 — 5,682 7,656 ​ 60.91 ​ 53.53 Exercised options / vested RSUs (2,049) (178) (287) — (521) — (3,035) ​ 2.67 ​ 33.28 Forfeited (41) (29) (1) — — (14) (85) ​ 4.19 ​ 41.02 Outstanding at March 31, 2021 18,579 4,617 2,735 1,455 13,333 18,468 59,187 ​ $ 3.41 $ 49.09 ​
Summary of stock compensation expense	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended March 31, 2021 Three months ended March 31, 2020 ​ Options ​ RSUs ​ Total Options ​ RSUs ​ Total Time Based ​ $ 2,433 ​ $ 14,268 ​ $ 16,701 ​ $ 1,634 ​ $ — ​ $ 1,634 PSP ​ — ​ ​ 16,314 ​ 16,314 ​ 1,633 ​ ​ — ​ 1,633 LTIP ​ — ​ ​ 118,828 ​ 118,828 ​ 1,575 ​ ​ — ​ 1,575 Total ​ $ 2,433 ​ $ 149,410 ​ $ 151,843 ​ $ 4,842 ​ $ — ​ $ 4,842

Income Taxes (Tables)

Income Taxes (Tables)	3 Months Ended
	Mar. 31, 2021
Income Taxes
Schedule of Company's (Benefit) provision for income taxes	Three months ended March 31, 2021 and 2020 is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended March 31, ​ 2021 2020 (Benefit) provision for income taxes ​ $ (4,595) ​ $ 9

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
	Mar. 31, 2021
Segment Information
Summary of financial information for the Company's segments	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended March 31, ​ 2021 2020 Revenue: ​ ​ B2C ​ $ 280,847 ​ $ 88,542 B2B ​ 31,429 ​ — Total revenue ​ 312,276 ​ 88,542 ​ ​ ​ ​ ​ ​ ​ Adjusted EBITDA: ​ ​ B2C ​ (141,355) ​ (49,460) B2B ​ 2,093 ​ — Total adjusted EBITDA ​ (139,262) ​ (49,460) Adjusted for: ​ ​ Depreciation and amortization ​ 28,193 ​ 4,704 Interest (income) expense, net ​ (985) ​ 2,351 Income tax (benefit) provision ​ (4,595) ​ 9 Stock-based compensation ​ 151,843 ​ 4,842 Transaction-related costs ​ 3,023 ​ 5,652 Litigation, settlement and related costs ​ 622 ​ 1,330 Loss on remeasurement of warrant liabilities ​ ​ 26,980 ​ ​ — Other non-recurring costs and special project costs ​ 1,848 ​ 129 Non-operating costs ​ 153 ​ 203 Net Loss attributable to common shareholders ​ $ (346,344) ​ $ (68,680)

Loss Per Share (Tables)

Loss Per Share (Tables)	3 Months Ended
	Mar. 31, 2021
Loss Per Share
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 March 31, ​ 2021 2020 Net loss ​ $ (346,344) ​ $ (68,680) Basic and diluted weighted-average common shares outstanding ​ 397,621 ​ 184,863 Loss per share attributable to common stockholders: ​ ​ Basic and diluted ​ $ (0.87) ​ $ (0.37)
Schedule of computation of diluted shares outstanding	For the periods presented, the following securities were not required to be included in the computation of diluted shares outstanding (calculated on a gross settlement or a full conversion basis): ​ ​ ​ ​ ​ ​ ​ Three months ended March 31, ​ ​ 2021 ​ 2020 Warrants 1,812 182 Stock options and RSUs 59,187 47,410 Convertible notes ​ 13,337 ​ 11,186 Total 74,336 58,778

Leases, Commitments and Conti_2

Leases, Commitments and Contingencies (Tables)	3 Months Ended
	Mar. 31, 2021
Leases, Commitments and Contingencies
Schedule of components of lease expense	​ ​ ​ ​ ​ ​ ​ ​ Three months ended March 31, ​ 2021 2020 Operating lease cost 4,133 2,365 Short term lease cost 426 579 Variable lease cost 701 1,076 Sublease income (111) (410) Total lease cost 5,149 3,610
Schedule of other information related to leases	​ ​ ​ ​ ​ ​ ​ ​ Three months ended March 31, ​ 2021 2020 ​ ​ ​ ​ ​ Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 4,378 2,305 Right-of-use assets obtained in exchange for new operating lease liabilities 8,790 132
Schedule of maturity of lease liabilities	​ ​ ​ ​ ​ ​ Years ending ​ ​ December 31, From April 1, 2021 to December 31, 2021 ​ $ 13,463 2022 ​ 16,609 2023 ​ 15,475 2024 ​ 12,965 2025 ​ 11,338 Thereafter ​ ​ 28,521 Total undiscounted future cash flows ​ ​ 98,371 Less: Imputed interest ​ (18,190) Present value of undiscounted future cash flows ​ $ 80,181
Summary of other contractual obligations and contingencies	​ ​ ​ ​ ​ ​ Years ending ​ ​ December 31, From April 1, 2021 to December 31, 2021 ​ $ 160,525 2022 ​ 168,325 2023 ​ 149,129 2024 ​ 126,876 2025 ​ 122,450 Thereafter ​ 309,900 Total ​ $ 1,037,205 * The above commitments include $430.6 million of future expected contractual obligations to a media company as part of a multi-year content integration agreement. ​

Business Combinations (Details)

Business Combinations (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions	Mar. 24, 2021	Mar. 31, 2021	Dec. 31, 2020
Preliminary pending finalization of valuation analyses pertaining to intangible assets acquired and tax liabilities assumed
Goodwill		$ 612,479	$ 569,603
VSiN
Business Acquisition [Line Items]
Equity interest acquired	100.00%
Shares, options, and earnout shares issued for acquisition	0.5
Weighted average fair value	$ 63.32
Purchase consideration
Cash consideration	$ 40,599
Share consideration(1)	29,399
Total VSiN consideration	69,998
Preliminary pending finalization of valuation analyses pertaining to intangible assets acquired and tax liabilities assumed
Operating lease right-of-use assets	6,120
Intangible assets	14,628
Other current assets	4,516
Liabilities	(7,910)
Goodwill	52,644
Total VSiN consideration	$ 69,998

Business Combinations - Intangi

Business Combinations - Intangible Assets (Details) - VSiN $ in Thousands	Mar. 24, 2021USD ($)
Acquired Finite-Lived Intangible Assets [Line Items]
Acquired Finite-lived Intangible Asset, Residual Value	$ 14,628
Developed technology - software
Acquired Finite-Lived Intangible Assets [Line Items]
Acquired Finite-lived Intangible Asset, Residual Value	$ 558
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	3 years
Customer relationships
Acquired Finite-Lived Intangible Assets [Line Items]
Acquired Finite-lived Intangible Asset, Residual Value	$ 11,170
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	6 years
Trademarks and tradenames
Acquired Finite-Lived Intangible Assets [Line Items]
Acquired Finite-lived Intangible Asset, Residual Value	$ 2,900
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	6 years

Intangible Assets and Goodwil_2

Intangible Assets and Goodwill - Finite Lived Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Finite-Lived Intangible Assets, Net [Abstract]
Gross Carrying Amount	$ 647,328	$ 648,950
Accumulated Amortization	(115,251)	(93,020)
Net	$ 532,077	$ 555,930
Developed technology - software
Finite-Lived Intangible Assets, Net [Abstract]
Weighted-Average Remaining Amortization Period	7 years 1 month 6 days	7 years 3 months 18 days
Gross Carrying Amount	$ 420,349	$ 439,624
Accumulated Amortization	(49,121)	(37,704)
Net	$ 371,228	$ 401,920
Internally developed software
Finite-Lived Intangible Assets, Net [Abstract]
Weighted-Average Remaining Amortization Period	2 years 2 months 12 days	2 years 3 months 18 days
Gross Carrying Amount	$ 80,727	$ 72,268
Accumulated Amortization	(37,068)	(33,179)
Net	$ 43,659	$ 39,089
Gaming licenses
Finite-Lived Intangible Assets, Net [Abstract]
Weighted-Average Remaining Amortization Period	3 years 3 months 18 days	3 years 6 months
Gross Carrying Amount	$ 23,851	$ 23,685
Accumulated Amortization	(8,397)	(6,354)
Net	$ 15,454	$ 17,331
Trademarks and tradenames
Finite-Lived Intangible Assets, Net [Abstract]
Weighted-Average Remaining Amortization Period	3 years 10 months 24 days	2 years 9 months 18 days
Gross Carrying Amount	$ 9,215	$ 6,537
Accumulated Amortization	(1,565)	(1,123)
Net	$ 7,650	$ 5,414
Customer relationships
Finite-Lived Intangible Assets, Net [Abstract]
Weighted-Average Remaining Amortization Period	4 years 3 months 18 days	4 years 3 months 18 days
Gross Carrying Amount	$ 113,186	$ 106,836
Accumulated Amortization	(19,100)	(14,660)
Net	$ 94,086	$ 92,176

Intangible Assets and Goodwil_3

Intangible Assets and Goodwill - Carrying Amount of Goodwill (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2021USD ($)
Goodwill [Roll Forward]
Balance as of December 31, 2020	$ 569,603
Goodwill acquired in VSiN acquisition	52,644
Cumulative translation adjustment	(9,768)
Balance as of March 31, 2021	612,479
B2C segments
Goodwill [Roll Forward]
Balance as of December 31, 2020	353,083
Balance as of March 31, 2021	353,083
B2B segments
Goodwill [Roll Forward]
Balance as of December 31, 2020	216,520
Cumulative translation adjustment	(9,768)
Balance as of March 31, 2021	206,752
Media
Goodwill [Roll Forward]
Goodwill acquired in VSiN acquisition	52,644
Balance as of March 31, 2021	$ 52,644

Intangible Assets and Goodwil_4

Intangible Assets and Goodwill - Additional information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Finite-Lived Intangible Assets, Net [Abstract]
Amortization expense	$ 25.2	$ 3.3

Current and Long-term Liabili_2

Current and Long-term Liabilities (Details) $ / shares in Units, $ in Thousands	May 14, 2019$ / sharesshares	Oct. 31, 2016	Mar. 31, 2021USD ($)$ / sharesshares	Mar. 31, 2020USD ($)	Dec. 31, 2020USD ($)	Sep. 30, 2020USD ($)
Line of Credit Facility [Line Items]
Estimated contingent liability for indirect taxes			$ 47,300		$ 45,900
Class of Warrant or Right [Line Items]
Loss on remeasurement of warrant liabilities			26,980	$ 0
Debt Instrument [Line Items]
Aggregate principle amount			$ 1,265,000
Public Warrants [Member]
Class of Warrant or Right [Line Items]
Number of warrants issued | shares	13,300,000
Number of shares issuable per warrant | shares	1
Exercise price of warrants | $ / shares	$ 11.50
Number of warrants outstanding | shares			0
Private Placement Warrants [Member]
Class of Warrant or Right [Line Items]
Number of warrants issued | shares	6,300,000
Number of warrants outstanding | shares			1,800,000
Warrants outstanding at a fair value			$ 90,900
Level 2
Class of Warrant or Right [Line Items]
Loss on remeasurement of warrant liabilities			27,000
Revolving Line of Credit
Line of Credit Facility [Line Items]
Maximum borrowing capacity						$ 60,000
Revolving Line of Credit
Line of Credit Facility [Line Items]
Maximum borrowing capacity			60,000		60,000
Principal outstanding			0		$ 0
Net facility available from the Credit Agreement			55,800
Prime Rate [Member] | Revolving Line of Credit
Line of Credit Facility [Line Items]
Debt Instrument, Basis Spread on Variable Rate		1.00%
Variable Annual Interest Rate Floor		6.50%
Quarterly in arrears fee per annum		0.25%
Convertible Noteholders
Debt Instrument [Line Items]
Aggregate principle amount			1,000
Lender fees			17,000
Debt financing costs			$ 1,000
Conversion ratio			10.5430
Conversion price | $ / shares			$ 94.85
Strike price | $ / shares			94.85
Cap price | $ / shares			$ 135.50
Net cost incurred			$ 124,000

Revenue Recognition - Deferred

Revenue Recognition - Deferred Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Revenue Recognition
Deferred revenue, beginning of the period	$ 30,627	$ 20,760
Deferred revenue, end of the period	41,849	24,094
Revenue recognized in the period from amounts included in deferred revenue at the beginning of the period	$ 24,493	$ 5,470

Revenue Recognition - Revenue D

Revenue Recognition - Revenue Disaggregation (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Disaggregation of Revenue [Line Items]
Total Revenue	$ 312,276	$ 88,542
Online gaming
Disaggregation of Revenue [Line Items]
Total Revenue	272,661	83,705
Gaming software
Disaggregation of Revenue [Line Items]
Total Revenue	31,429
Other
Disaggregation of Revenue [Line Items]
Total Revenue	$ 8,186	$ 4,837

Revenue Recognition - Revenue b

Revenue Recognition - Revenue by Geographic Region (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Disaggregation of Revenue [Line Items]
Total Revenue	$ 312,276	$ 88,542
United States
Disaggregation of Revenue [Line Items]
Total Revenue	280,117	90,810
International
Disaggregation of Revenue [Line Items]
Total Revenue	$ 32,159	$ (2,268)

Stock-Based Compensation - Stoc

Stock-Based Compensation - Stock option activity (Details) $ / shares in Units, shares in Thousands, $ in Millions	3 Months Ended
	Mar. 31, 2021USD ($)item$ / sharesshares
Options Activity
Total unrecognized stock-based compensation expense | $	$ 1,087.1
Total unrecognized stock-based compensation expense expected to be recognized over a weighted-average period	2 years 1 month 6 days
Number of shares outstanding, beginning of period	54,651
Number of shares granted	7,656
Number of shares exercised	(3,035)
Number of shares forfeited	(85)
Number of shares outstanding, end of period	59,187
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
Weighted-Average Exercise Price
Weighted average exercise price outstanding, beginning of period | $ / shares	$ 3.57
Weighted average exercise price granted | $ / shares	60.91
Weighted average exercise price exercised | $ / shares	2.67
Weighted average exercise price forfeited | $ / shares	4.19
Weighted average exercise price outstanding, end of period | $ / shares	3.41
RSUs
Weighted-Average Exercise Price
Weighted average exercise price outstanding, beginning of period | $ / shares	47.01
Weighted average exercise price granted | $ / shares	53.53
Weighted average exercise price exercised | $ / shares	33.28
Weighted average exercise price forfeited | $ / shares	41.02
Weighted average exercise price outstanding, end of period | $ / shares	$ 49.09
Time Based Options
Options Activity
Number of shares outstanding, beginning of period	20,519
Number of shares granted	150
Number of shares exercised	(2,049)
Number of shares forfeited	(41)
Number of shares outstanding, end of period	18,579
Time Based RSUs
Options Activity
Number of shares outstanding, beginning of period	3,548
Number of shares granted	1,276
Number of shares exercised	(178)
Number of shares forfeited	(29)
Number of shares outstanding, end of period	4,617
PSP Options
Options Activity
Number of shares outstanding, beginning of period	3,023
Number of shares exercised	(287)
Number of shares forfeited	(1)
Number of shares outstanding, end of period	2,735
PSP RSUs
Options Activity
Number of shares outstanding, beginning of period	907
Number of shares granted	548
Number of shares outstanding, end of period	1,455
LTIP Options
Options Activity
Number of shares outstanding, beginning of period	13,854
Number of shares exercised	(521)
Number of shares outstanding, end of period	13,333
LTIP RSUs
Options Activity
Number of shares outstanding, beginning of period	12,800
Number of shares granted	5,682
Number of shares forfeited	(14)
Number of shares outstanding, end of period	18,468

Stock-Based Compensation - St_2

Stock-Based Compensation - Stock compensation expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock compensation expense, Options	$ 2,433	$ 4,842
Stock compensation expense, RSU	149,410
Stock compensation expense	151,843	4,842
Time Based
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock compensation expense, Options	2,433	1,634
Stock compensation expense, RSU	14,268
Stock compensation expense	16,701	1,634
PSP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock compensation expense, Options		1,633
Stock compensation expense, RSU	16,314
Stock compensation expense	$ 16,314	1,633
PSP | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance objectives in years	2 years
PSP | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance objectives in years	1 year
LTIP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock compensation expense, Options		1,575
Stock compensation expense, RSU	$ 118,828
Stock compensation expense	$ 118,828	$ 1,575

Income Taxes - Reconciliation o

Income Taxes - Reconciliation of the federal income tax rate (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Reconciliation of the federal income tax rate to the Company's effective tax rate
(Benefit) provision for income taxes	$ (4,595)	$ 9
Statutory federal income tax rate	1.30%	(0.01%)
State taxes, net of federal tax benefit	21.00%	21.00%
Discrete income tax benefit	$ 6,800

Segment Information (Details)

Segment Information (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2021USD ($)segment	Mar. 31, 2020USD ($)
Segment Reporting Information [Line Items]
Number of operating segments | segment	2
Number of reportable segments | segment	2
Segment Reporting Information, Profit (Loss) [Abstract]
Total revenue	$ 312,276	$ 88,542
Total adjusted EBITDA	(139,262)	(49,460)
Depreciation and amortization	28,193	4,704
Interest income (expense), net	(985)	2,351
Income tax (benefit) provision	(4,595)	9
Stock-based compensation	151,843	4,842
Transaction-related costs	3,023	5,652
Litigation, settlement and related costs	622	1,330
Loss on remeasurement of warrant liabilities	26,980	0
Other non-recurring costs and special project costs	1,848	129
Non-operating costs	153	203
Net Loss attributable to common shareholders	(346,344)	(68,680)
B2C segments
Segment Reporting Information, Profit (Loss) [Abstract]
Total revenue	280,847	88,542
Total adjusted EBITDA	(141,355)	$ (49,460)
B2B segments
Segment Reporting Information, Profit (Loss) [Abstract]
Total revenue	31,429
Total adjusted EBITDA	$ 2,093

Loss Per Share (Details)

Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Loss Per Share
Net loss	$ (346,344)	$ (68,680)
Basic and diluted weighted-average common shares outstanding	397,621	184,863
Loss per share attributable to common stockholders:
Basic and diluted	$ (0.87)	$ (0.37)

Loss Per Share - Diluted shares

Loss Per Share - Diluted shares outstanding (Details) - shares	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	74,336	58,778
Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	1,812	182
Stock options and RSUs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	59,187	47,410
Convertible notes
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	13,337	11,186

Related-Party Transactions (Det

Related-Party Transactions (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2021	Dec. 31, 2020
Related Party Transaction [Line Items]
Revenue from related parties	$ 1.4
Related Party Transaction, Expenses from Transactions with Related Party	0	$ 0.6
Leases expenses to related parties	0.2
Administrative Services Agreement
Total administrative services expenses	0	0.6
Shareholders and Directors
Related Party Transaction [Line Items]
Receivables from shareholders and directors	1.9			$ 1.9
SB Tech
Related Party Transaction [Line Items]
Accounts receivable	0.5			0.5
Related party transactions	0
Media Purchase Agreement
Related Party Transaction [Line Items]
Annual commitment	5		$ 15
Additional contingent commitment			$ 5
Total commitment	15
Sales and marketing expenses from related party transaction	0	$ 3.5
Equity Method Investee
Related Party Transaction [Line Items]
Receivables from Equity Method Investment	1.3			$ 1.1
Equity Method Investee | DBDK Venture Fund
Related Party Transaction [Line Items]
Investment amount	$ 17

Leases, Commitments and Conti_3

Leases, Commitments and Contingencies -Leases (Details)	Mar. 31, 2021
Corporate office facilities | Maximum
Property, Plant and Equipment [Line Items]
Lessee, Operating Lease, Term of Contract	10 years

Leases, Commitments and Conti_4

Leases, Commitments and Contingencies - Components of Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Leases, Commitments and Contingencies
Operating lease cost	$ 4,133	$ 2,365
Short term lease cost	426	579
Variable lease cost	701	1,076
Sublease income	(111)	(410)
Total lease cost	$ 5,149	$ 3,610

Leases, Commitments and Conti_5

Leases, Commitments and Contingencies - Other Information Related to Leases (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 4,378	$ 2,305
Right-of-use assets obtained in exchange for new operating lease liabilities	$ 8,790	$ 132
Weighted-average remaining lease term (in years): Operating leases	6 years 4 months 24 days
Weighted-average discount rate: Operating leases	6.50%

Leases, Commitments and Conti_6

Leases, Commitments and Contingencies - Maturity of Lease Liabilities (Details) $ in Thousands	Mar. 31, 2021USD ($)
Lessee, Operating Lease, Liability, Payment, Due [Abstract]
From April 1, 2021 to December 31, 2021	$ 13,463
2022	16,609
2023	15,475
2024	12,965
2025	11,338
Thereafter	28,521
Total undiscounted future cash flows	98,371
Less: Imputed interest	(18,190)
Present value of undiscounted future cash flows	$ 80,181

Leases, Commitments and Conti_7

Leases, Commitments and Contingencies - Other Contractual Obligations and Contingencies (Details) $ in Thousands	Mar. 31, 2021USD ($)
Other Contractual Obligations and Contingencies
From April 1, 2021 to December 31, 2021	$ 160,525
2022	168,325
2023	149,129
2024	126,876
2025	122,450
Thereafter	309,900
Total	$ 1,037,205

Leases, Commitments and Conti_8

Leases, Commitments and Contingencies - Other Contractual Obligations, Contingencies and Letters of Credit (Details) $ in Millions	Nov. 06, 2020item	Oct. 21, 2019claim	Jun. 14, 2019patent	Mar. 31, 2021USD ($)	Dec. 31, 2020USD ($)
Mass Arbitration Demands Filed by One Law Firm
Other Commitments [Line Items]
Number of mass arbitrations filed against the company | claim		1,000
Number of individuals filed against the company | item	999
Interactive Games LLC | Daily Fantasy Sports
Other Commitments [Line Items]
Number of patents allegedly infringed | patent			2
Interactive Games LLC | Sportsbook product
Other Commitments [Line Items]
Number of patents allegedly infringed | patent			2
Media Purchase Agreement
Other Commitments [Line Items]
Contractual obligations | $				$ 430.6
Letter of Credit [Member] | Pacific Western Bank
Other Commitments [Line Items]
Letters of credit | $				$ 4.2	$ 4.2

Subsequent Events (Details)

Subsequent Events (Details) - Subsequent Event [Member] - Blue Ribbon $ in Millions	1 Months Ended
	Apr. 30, 2021USD ($)
Subsequent Event [Line Items]
Aggregate Cash Consideration	$ 18.3
Aggregate consideration in the form of shares of Class A common stock	$ 3.7