DraftKings 10-Q 6 Aug 21 2021 Q2 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Jun. 30, 2021	Aug. 04, 2021
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2021
Document Transition Report	false
Entity File Number	001-38908
Entity Registrant Name	DRAFTKINGS INC.
Entity Incorporation, State or Country Code	NV
Entity Tax Identification Number	84-4052441
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
Entity Address, Postal Zip Code	02116
City Area Code	617
Local Phone Number	986-6744
Title of 12(b) Security	Class A Common Stock, $0.0001 par value
Trading Symbol	DKNG
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Central Index Key	0001772757
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2
Class A common stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		403,298,200
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	Jun. 30, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 2,646,500	$ 1,817,258
Cash reserved for users	314,257	287,718
Receivables reserved for users	24,915	30,249
Accounts receivable	46,290	44,522
Prepaid expenses and other current assets	25,002	14,558
Total current assets	3,056,964	2,194,305
Property and equipment, net	43,352	40,827
Intangible assets, net	540,664	555,930
Goodwill	631,408	569,603
Operating lease right-of-use assets	70,355	68,077
Equity method investment	4,961	2,955
Deposits and other non-current assets	11,152	7,632
Total assets	4,358,856	3,439,329
Current liabilities:
Accounts payable and accrued expenses	294,596	223,633
Liabilities to users	339,146	317,942
Operating lease liabilities, current portion	13,288	12,837
Total current liabilities	647,030	554,412
Convertible notes	1,247,118	0
Non-current operating lease liabilities	64,036	68,775
Warrant liabilities	71,953	65,444
Long-term income tax liability	73,588	72,066
Other long-term liabilities	49,779	47,287
Total liabilities	2,153,504	807,984
Commitments and contingent liabilities
Stockholders' equity (deficit):
Treasury stock, at cost; 6,970 and 6,807 shares as of June 30, 2021 and December 31, 2020, respectively	(298,681)	(288,784)
Additional paid-in capital	5,322,530	5,067,135
Accumulated deficit	(2,882,489)	(2,230,619)
Accumulated other comprehensive income	63,913	83,534
Total stockholders’ equity (deficit)	2,205,352	2,631,345
Total liabilities and stockholders’ equity (deficit)	4,358,856	3,439,329
Class A common stock
Stockholders' equity (deficit):
Common stock	40	40
Class B common stock
Stockholders' equity (deficit):
Common stock	$ 39	$ 39

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands	Jun. 30, 2021	Dec. 31, 2020
Treasury stock, shares (in shares)	6,970	6,807
Class A common stock
Common shares, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common shares, shares authorized (in shares)	900,000	900,000
Common shares, shares issued (in shares)	409,463	403,110
Common shares, shares outstanding (in shares)	402,493	396,303
Class B common stock
Common shares, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common shares, shares authorized (in shares)	900,000	900,000
Common shares, shares issued (in shares)	393,014	393,014
Common shares, shares outstanding (in shares)	393,014	393,014

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Income Statement [Abstract]
Revenue	$ 297,605	$ 70,931	$ 609,881	$ 159,473
Cost of revenue	187,006	47,330	370,231	90,746
Sales and marketing	170,712	46,188	399,398	99,894
Product and technology	62,635	30,549	118,794	48,590
General and administrative	198,806	107,308	367,803	146,804
Loss from operations	(321,554)	(160,444)	(646,345)	(226,561)
Other income (expense):
Interest income (expense), net	1,642	(588)	2,627	(2,939)
Gain (loss) on remeasurement of warrant liabilities	16,984	(363,361)	(9,996)	(363,361)
Loss before income tax provision (benefit) and loss from equity method investment	(302,928)	(524,393)	(653,714)	(592,861)
Income tax provision (benefit)	2,404	323	(2,191)	332
Loss from equity method investment	194	82	347	285
Net loss attributable to common stockholders	$ (305,526)	$ (524,798)	$ (651,870)	$ (593,478)
Loss per share attributable to common stockholders:
Basic (in dollars per share)	$ (0.76)	$ (1.80)	$ (1.63)	$ (2.49)
Diluted (in dollars per share)	$ (0.76)	$ (1.80)	$ (1.63)	$ (2.49)

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Statement of Comprehensive Income [Abstract]
Net loss	$ (305,526)	$ (524,798)	$ (651,870)	$ (593,478)
Other comprehensive income (loss):
Foreign currency translation adjustments arising during period, net of nil tax	7,697	24,986	(19,621)	24,986
Comprehensive loss	$ (297,829)	$ (499,812)	$ (671,491)	$ (568,492)

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Statement of Comprehensive Income [Abstract]
Tax (expense) benefit	$ 0	$ 0	$ 0	$ 0

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Ordinary SharesClass A common stock	Ordinary SharesClass B common stock	Additional Paid-in Capital	Accumulated Deficit	Accumulated Other Comprehensive Income	Treasury Stock Amount
Balance at the beginning (in shares) at Dec. 31, 2019		184,626	0
Balance at the beginning at Dec. 31, 2019	$ (49,580)	$ 18	$ 0	$ 949,186	$ (998,784)	$ 0
Increase (Decrease) in Stockholders' Equity
Issuance of Series F preferred stock (in shares)		1,526
Issuance of Series F preferred stock	11,000			11,000
Exercise of stock options (in shares)		456
Exercise of stock options	467			467
Stock-based compensation expense	4,842			4,842
Net loss	(68,680)				(68,680)
Balance at the end (in shares) at Mar. 31, 2020		186,608	0
Balance at the end at Mar. 31, 2020	(101,951)	$ 18	$ 0	965,495	(1,067,464)	0
Balance at the beginning (in shares) at Dec. 31, 2019		184,626	0
Balance at the beginning at Dec. 31, 2019	(49,580)	$ 18	$ 0	949,186	(998,784)	0
Increase (Decrease) in Stockholders' Equity
Equity consideration issued for acquisition	789,064
Foreign currency translation	24,986
Net loss	(593,478)
Balance at the end (in shares) at Jun. 30, 2020		354,251	393,014
Balance at the end at Jun. 30, 2020	2,143,233	$ 35	$ 39	3,710,435	(1,592,262)	24,986
Balance at the beginning (in shares) at Mar. 31, 2020		186,608	0
Balance at the beginning at Mar. 31, 2020	(101,951)	$ 18	$ 0	965,495	(1,067,464)	0
Increase (Decrease) in Stockholders' Equity
Exercise of stock options (in shares)		2,287
Exercise of stock options	5,599			5,599
Stock-based compensation expense (in shares)			393,014
Stock-based compensation expense	54,486		$ 39	54,447
Merger recapitalization, net repurchase of $7,192 and issuance costs of $11,564 (in shares)		(278)
Merger recapitalization, net repurchase of $7,192 and issuance costs of $11,564	(18,756)			(18,756)
Conversion of Convertible Notes to common shares (in shares)		11,254
Conversion of Convertible Notes to common shares	112,545	$ 1		112,544
DEAC shares recapitalized, net of redemptions and equity issuance costs of $10,631 (in shares)		74,122
DEAC shares recapitalized, net of redemptions and equity issuance costs of $10,631	665,485	$ 7		665,478
Equity consideration issued for acquisition (in shares)		40,739
Equity consideration issued for acquisition	789,064	$ 4		789,060
Shares issued for earn outs - SBTech (in shares)		720
Shares issued for earn outs - DEAC and DK (in shares)		5,280
Shares issued for earn outs – DEAC and DK	0	$ 1		(1)
Shares issued for exercise of warrants (in shares)		17,519
Shares issued for exercise of warrants	515,773	$ 2		515,771
Shares issued in Offering, net of issuance costs of $19,200 (in shares)		16,000
Shares issued in Offering, net of issuance costs of $19,200	620,800	$ 2		620,798
Foreign currency translation	24,986					24,986
Net loss	(524,798)				(524,798)
Balance at the end (in shares) at Jun. 30, 2020		354,251	393,014
Balance at the end at Jun. 30, 2020	2,143,233	$ 35	$ 39	3,710,435	(1,592,262)	24,986
Balance at the beginning (in shares) at Dec. 31, 2020		396,303	393,014
Balance at the beginning at Dec. 31, 2020	2,631,345	$ 40	$ 39	5,067,135	(2,230,619)	83,534	$ (288,784)
Increase (Decrease) in Stockholders' Equity
Exercise of stock options (in shares)		2,857
Exercise of stock options	7,638			7,638
Stock-based compensation expense	151,843			151,843
Purchase of capped call options	(123,970)			(123,970)
Equity consideration issued for acquisition (in shares)		464
Equity consideration issued for acquisition	29,399			29,399
Shares issued for exercise of warrants (in shares)		138
Shares issued for exercise of warrants	1,761			1,761
Purchase of treasury stock (in shares)		(48)
Purchase of treasury stock	(3,124)						(3,124)
Restricted stock unit vesting (in shares)		178
Foreign currency translation	(27,318)					(27,318)
Net loss	(346,344)				(346,344)
Balance at the end (in shares) at Mar. 31, 2021		399,892	393,014
Balance at the end at Mar. 31, 2021	2,321,230	$ 40	$ 39	5,133,806	(2,576,963)	56,216	(291,908)
Balance at the beginning (in shares) at Dec. 31, 2020		396,303	393,014
Balance at the beginning at Dec. 31, 2020	$ 2,631,345	$ 40	$ 39	5,067,135	(2,230,619)	83,534	(288,784)
Increase (Decrease) in Stockholders' Equity
Exercise of stock options (in shares)	5,652
Equity consideration issued for acquisition	$ 33,149
Foreign currency translation	(19,621)
Net loss	(651,870)
Balance at the end (in shares) at Jun. 30, 2021		402,493	393,014
Balance at the end at Jun. 30, 2021	2,205,352	$ 40	$ 39	5,322,530	(2,882,489)	63,913	(298,681)
Balance at the beginning (in shares) at Mar. 31, 2021		399,892	393,014
Balance at the beginning at Mar. 31, 2021	2,321,230	$ 40	$ 39	5,133,806	(2,576,963)	56,216	(291,908)
Increase (Decrease) in Stockholders' Equity
Exercise of stock options (in shares)		1,878
Exercise of stock options	10,816			10,816
Stock-based compensation expense	171,739			171,739
Equity consideration issued for acquisition (in shares)		56
Equity consideration issued for acquisition	3,750			3,750
Shares issued for exercise of warrants (in shares)		43
Shares issued for exercise of warrants	2,419			2,419
Purchase of treasury stock (in shares)		(115)
Purchase of treasury stock	(6,773)						(6,773)
Restricted stock unit vesting (in shares)		739
Foreign currency translation	7,697					7,697
Net loss	(305,526)				(305,526)
Balance at the end (in shares) at Jun. 30, 2021		402,493	393,014
Balance at the end at Jun. 30, 2021	$ 2,205,352	$ 40	$ 39	$ 5,322,530	$ (2,882,489)	$ 63,913	$ (298,681)

CONDENSED CONSOLIDATED STATEM_5

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) $ in Thousands	3 Months Ended
	Jun. 30, 2020USD ($)
Statement of Stockholders' Equity [Abstract]
Merge recapitalization repurchase costs	$ 7,192
Merger recapitalization issuance costs	11,564
DEAC shares recapitalized redemptions and equity issuance costs	10,631
Shares issued in offering issuance costs	$ 19,200

CONDENSED CONSOLIDATED STATEM_6

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Operating Activities:
Net loss	$ (651,870)	$ (593,478)
Adjustments to reconcile net loss to net cash flows used in operating activities:
Depreciation and amortization	58,244	23,372
Non-cash interest expense	775	3,111
Stock-based compensation expense	323,582	59,328
Loss from equity method investment	347	285
Loss on remeasurement of warrant liabilities	9,996	363,361
Deferred income taxes	(9,548)	(201)
Change in operating assets and liabilities, net of effect of business combinations:
Receivables reserved for users	5,334	4,768
Accounts receivable	(993)	(6,347)
Prepaid expenses and other current assets	(9,136)	(2,187)
Deposits and other non-current assets	(2,944)	346
Operating leases, net	(432)	(82)
Accounts payable and accrued expenses	73,309	11,655
Other long-term liabilities	1,883	5,097
Long-term income tax liability	3,874	0
Liabilities to users	21,204	(16,004)
Net cash flows used in operating activities	(176,375)	(146,976)
Cash Flows from Investing Activities:
Purchases of property and equipment	(6,221)	(3,336)
Cash paid for internally developed software costs	(19,489)	(11,019)
Acquisition of gaming licenses	(6,200)	(7,478)
Cash paid for acquisitions, net of cash acquired	(64,969)	(176,819)
Other investing activities	(3,700)	0
Net cash flows used in investing activities	(100,579)	(198,652)
Financing Activities:
Proceeds from issuance of convertible notes, net	1,247,125	41,077
Purchase of capped call options	(123,970)	0
Proceeds from shares issued for warrants	199	190,664
Purchase of treasury stock	(9,897)	0
Proceeds from exercise of stock options	18,454	6,066
Cash buyout of unaccredited investors	0	(7,192)
Issuance costs related to merger recapitalization	0	(11,564)
Proceeds from recapitalization of DEAC shares, net of issuance costs	0	667,999
Proceeds from issuance of Class A common stock, net of issuance costs	0	620,800
Net payment of revolving credit line	0	(6,750)
Net cash flows provided by financing activities	1,131,911	1,501,100
Effect of foreign exchange rates on cash and cash equivalents and restricted cash	824	256
Net increase in cash and cash equivalents and restricted cash	855,781	1,155,728
Cash and cash equivalents and restricted cash at the beginning of period	2,104,976	220,533
Cash and cash equivalents and restricted cash, end of period	2,960,757	1,376,261
Disclosure of cash, cash equivalents and restricted cash
Cash and cash equivalents	2,646,500	1,244,266
Cash reserved for users	314,257	131,995
Total cash, cash equivalents and restricted cash, end of period	2,960,757	1,376,261
Supplemental Disclosure of Noncash Investing and Financing Activities
Equity consideration issued for acquisitions	33,149	789,064
Decrease in accounts payable and accrued expenses from property and equipment and internally developed software costs	(114)	0
Increase in accounts payable and accrued expenses from convertible notes financing costs	782	0
Decrease of accounts payable and accrued expenses from gaming licenses	(4,976)	(1,000)
Conversion of convertible notes and accrued interest to common shares	0	112,545
Increase in net liabilities acquired from DEAC	0	2,514
Increase of other current assets from transfer agent related to warrants	494	9,803
Supplemental Disclosure of Cash Activities
Increase (decrease) in cash reserved for users	26,539	(12,005)
Cash paid for interest	$ 0	$ 417

Description of Business

Description of Business	6 Months Ended
	Jun. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business	Description of Business DraftKings Inc., a Nevada corporation (the “Company” or “DraftKings”), was incorporated in Nevada as DEAC NV Merger Corp., a wholly owned subsidiary of our legal predecessor, Diamond Eagle Acquisition Corp. (“DEAC”), a special purpose acquisition company. On April 23, 2020, DEAC consummated the transactions contemplated by the Business Combination Agreement (the “Business Combination”) dated December 22, 2019, as amended on April 7, 2020 and, in connection therewith, (i) DEAC merged with and into the Company, whereby the Company survived the merger and became the successor issuer to DEAC by operation of Rule 12g-3(a) promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), (ii) the Company changed its name to “DraftKings Inc.,” (iii) the Company acquired DraftKings Inc., a Delaware corporation (“Old DK”), by way of a merger and (iv) the Company acquired all of the issued and outstanding share capital of SBTech (Global) Limited (“SBTech”). Upon consummation of the preceding transactions, Old DK and SBTech became wholly owned subsidiaries of the Company. DraftKings is a digital sports entertainment and gaming company. The Company’s business-to-consumer (“B2C”) segment provides users with daily fantasy sports (“DFS”), sports betting (“Sportsbook”) and online casino (“iGaming”) products. 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 June 30, 2021, the U.S. jurisdictions with statutes legalizing online sports betting are Arizona, Colorado, Connecticut, Florida, Illinois, Indiana, Iowa, Louisiana, Maryland, Michigan, Nevada, New Hampshire, New Jersey, New York, Oregon, Pennsylvania, Puerto Rico, Rhode Island, Tennessee, Virginia, Washington, D.C, West Virginia and Wyoming. The jurisdictions with statutes legalizing sports betting at certain land-based retail locations are Arizona, Arkansas, Colorado, Connecticut, Delaware, Florida, Illinois, Indiana, Iowa, Louisiana, Maryland, Michigan, Mississippi, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Puerto Rico, Rhode Island, South Dakota, 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 iGaming are Connecticut, Delaware, Michigan, New Jersey, Pennsylvania and West Virginia. As of June 30, 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 June 30, 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. The COVID-19 pandemic therefore presents material uncertainty and risk with respect to us and our performance and could affect our financial results in a materially adverse way. Since the start of the COVID-19 pandemic, the primary impacts to the Company have been the suspension, cancellation and rescheduling of sports seasons and sporting events. Beginning in March 2020 and continuing 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 six months ended June 30, 2021, many sports seasons continued and most sporting events were held as planned, including the NFL regular season, the NFL Playoffs and Superbowl LV, the NBA regular season and NBA playoffs, the NHL regular season and the NHL Stanley Cup, the NASCAR Cup Series, various NCAA football bowl games, the NCAA college basketball season and tournament, and the UEFA European Football Championship. The 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 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. The Company’s revenue varies 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 developing more innovative 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 and simulated NASCAR. 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 necessitated a shift away from a traditional office environment for many employees, the Company implemented business continuity programs to ensure that employees were safe and that the business continued to function with minimal disruptions to normal work operations while employees worked remotely. The Company will continue to monitor developments relating to disruptions and uncertainties caused by COVID-19.

Summary of Significant Accounti

Summary of Significant Accounting Policies and Practices	6 Months Ended
	Jun. 30, 2021
Accounting Policies [Abstract]
Summary of Significant Accounting Policies and Practices	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 (“Original Annual Report”) and as amended by the Form 10-K/A filed with the SEC on May 3, 2021 (“2020 Annual Report”). The accompanying 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 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 and six months ended June 30, 2021 includes the financial information and activities for SBTech; whereas, the financial information for the three and six months ended June 30, 2020 includes the financial information and activities for SBTech for the period from April 24, 2020 to (and including) June 30, 2020. 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. Prior to the second quarter of 2021, the Company (a) included changes in “cash reserved for users” as a component within the change in operating assets and liabilities on its condensed consolidated statement of cash flows as the Company historically viewed the change in cash reserved for users as offsetting the change in player liabilities and (b) presented “cash reserved for users” separate from cash and cash equivalents on the condensed consolidated balance sheet. Beginning with the second quarter of 2021, to reflect our total cash position (“cash and cash equivalents” and “cash reserved for users”) and to conform to Accounting Standards Update (“ASU”) 2016-18, Statement of Cash Flows (Topic 230) — Restricted Cash , the Company revised its presentation to exclude changes in “cash reserved for users” from the “change in operating assets and liabilities” and instead present the total balance as a component of cash and cash equivalents and restricted cash on its condensed consolidated statement of cash flows. This revision does not have a material impact on the Company's presentation of cash flows as the change in cash reserved for users will continue to be presented as a supplemental disclosure in the condensed consolidated statement of cash flows. In addition, the Company will continue to present cash reserved for users as a separate line item on the Company’s condensed consolidated balance sheet. These revisions have no impact on the Company’s previously reported consolidated statements of operations or consolidated balance sheets, including the Company’s cash and cash equivalents and cash reserved for user balances. Prior period amounts have been revised to conform to the current period presentation. The following table presents the condensed consolidated statement of cash flows line items after giving effect to the revision of presentation as discussed above for the six months ended June 30, 2020, nine months ended September 30 2020, year ended December 31, 2020 and three months ended March 31, 2021. Six months ended June 30, 2020 Nine months ended September 30, 2020 Reported Adjustments Revised Reported Adjustments Revised Adjustments to reconcile net loss to net cash flows used in operating activities: Change in operating assets and liabilities, net of effect of business combinations: Cash reserved for users $ 12,005 $ (12,005) $ — $ (113,432) $ 113,432 $ — Net cash flows used in operating activities (134,971) (12,005) (146,976) (241,291) 113,432 (127,859) Net increase in cash, cash equivalents and restricted cash 1,167,733 (12,005) 1,155,728 1,064,374 113,432 1,177,806 Cash and cash equivalents and restricted cash at the beginning of period 76,533 144,000 (a) 220,533 76,533 144,000 (a) 220,533 Cash and cash equivalents and restricted cash, end of period $ 1,244,266 $ 131,995 $ 1,376,261 $ 1,140,907 $ 257,432 $ 1,398,339 Year ended December 31, 2020 Three months ended March 31, 2021 Reported Adjustments Revised Reported Adjustments Revised Adjustments to reconcile net loss to net cash flows used in operating activities: Change in operating assets and liabilities, net of effect of business combinations: Cash reserved for users $ (143,718) $ 143,718 $ — $ (18,014) $ 18,014 $ — Net cash flows used in operating activities (337,875) 143,718 (194,157) (77,751) 18,014 (59,737) Net increase in cash, cash equivalents and restricted cash 1,740,725 143,718 1,884,443 1,000,870 18,014 1,018,884 Cash and cash equivalents and restricted cash at the beginning of period 76,533 144,000 (a) 220,533 1,817,258 287,718 (b) 2,104,976 Cash and cash equivalents and restricted cash, end of period $ 1,817,258 $ 287,718 $ 2,104,976 $ 2,818,128 $ 305,732 $ 3,123,860 (a) Represents the cash reserved for user balance as of December 31, 2019 as previously included in the Company's 2020 Annual Report filed with the SEC. (b) Represents the cash reserved for user balance as of December 31, 2020 as previously included in the Company's 2020 Annual Report filed with the SEC. Cash and cash equivalents Cash and cash equivalents consist of highly liquid, unrestricted savings, checking and other bank accounts. The Company also utilizes money market funds and short-term deposits with original maturities of three months or less. Recently Adopted Accounting Pronouncements In August 2020, the Financial Accounting Standards Board (“FASB”) issued ASU 2020-06, Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40) (“ASU 2020-06”) to simplify accounting for certain financial instruments. ASU 2020-06 eliminates the current models that require separation of beneficial conversion and cash conversion features from convertible instruments and simplifies the derivative scope exception guidance pertaining to equity classification of contracts in an entity’s own equity. The new standard also introduces additional disclosures for convertible debt and freestanding instruments that are indexed to and settled in an entity’s own equity. ASU 2020-06 amends the diluted earnings per share guidance, including the requirement to use the if-converted method for all convertible instruments. ASU 2020-06 is effective January 1, 2022 and should be applied on a full or modified retrospective basis, with early adoption permitted beginning on January 1, 2021. The Company elected to early adopt the new standard as of January 1, 2021 using the modified retrospective approach. In the first quarter of 2021, the Company issued convertible senior notes, whereby the entire proceeds from issuance were recognized as a liability, net of any lender fees and debt financing costs, on our condensed consolidated balance sheet as there is no longer a discount from separation of the conversion feature within equity. Please refer to Note 5 included herein for additional information. In December 2019, the FASB issued ASU 2019-12, Income Taxes—Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”). ASU 2019-12 simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. ASU 2019-12 is effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The Company adopted this standard as of January 1, 2021. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements and related disclosures.

Business Combinations

Business Combinations	6 Months Ended
	Jun. 30, 2021
Business Combination and Asset Acquisition [Abstract]
Business Combinations	Business Combinations Vegas Sports Information Network, Inc. (“VSiN”) Acquisition 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, the Company 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: Fair Value Weighted-Average Useful Life (in years) Developed technology - software $ 558 3.0 Customer relationships 11,170 6.0 Trademarks and trade names 2,900 4.0 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. Blue Ribbon Software Ltd. (“Blue Ribbon”) Acquisition On April 1, 2021, the Company acquired 100% of the equity of Blue Ribbon for $17.8 million of cash and approximately $3.8 million of the Company’s Class A common stock (the "Blue Ribbon Acquisition"). The purchase price allocation is preliminary, and as additional information becomes available, the Company 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 Blue Ribbon Acquisition. Blue Ribbon’s financial results are included in the Company’s condensed consolidated financial statements, but are not considered material.

Intangible Assets and Goodwill

Intangible Assets and Goodwill	6 Months Ended
	Jun. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets and Goodwill	Intangible Assets and Goodwill Intangible Assets The Company has the following intangible assets, net as of June 30, 2021: Weighted-Average Remaining Amortization Period Gross Carrying Amount Accumulated Amortization Net Developed technology 6.8 years $ 443,259 $ (63,672) $ 379,587 Internally developed software 2.7 years 91,265 (41,465) 49,800 Gaming licenses 2.9 years 24,880 (9,982) 14,898 Trademarks and tradenames 2.9 years 9,280 (2,264) 7,016 Customer relationships 3.8 years 114,596 (25,233) 89,363 Intangible assets, net $ 683,280 $ (142,616) $ 540,664 The Company has the following intangible assets, net as of December 31, 2020: Weighted-Average Remaining Amortization Period Gross Carrying Amount Accumulated 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 $26.6 million and $16.4 million for the three months ended June 30, 2021 and 2020 and $51.9 million and $19.6 million for the six months ended June 30, 2021 and 2020, respectively. Goodwill The changes in the carrying amount of goodwill for the six months ended June 30, 2021 by reporting unit are: B2C B2B Media Total Balance as of December 31, 2020 $ 353,083 $ 216,520 — $ 569,603 Goodwill resulting from acquisitions* 7,673 8,300 52,644 68,617 Cumulative translation adjustment — (6,812) — (6,812) Balance as of June 30, 2021 $ 360,756 $ 218,008 $ 52,644 $ 631,408 * = Preliminary allocation

Current and Long-term Liabiliti

Current and Long-term Liabilities	6 Months Ended
	Jun. 30, 2021
Current and Long-term Liabilities
Current and Long-term Liabilities	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 10.543 shares of the Company’s Class A common stock per $1,000 principal amount of Convertible Notes, which is equivalent to an initial conversion price of approximately $94.85 per share of Class A common stock. The conversion rate is subject to adjustment upon the occurrence of certain specified events and includes a make-whole adjustment upon early conversion in connection with a make-whole fundamental change (as defined within the indenture agreement). Prior to September 15, 2027, the Convertible Notes will be convertible only upon satisfaction of certain conditions and during certain periods, and thereafter, at any time until the close of business on the second scheduled trading day immediately preceding the maturity date. The Company will satisfy any conversion election by paying or delivering, as the case may be, cash, shares of Class A common stock or a combination of cash and shares of Class A common stock. During the six months ended June 30, 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. Revolving Line of Credit In October 2016, Old DK 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 June 30, 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 June 30, 2021 or December 31, 2020. Net facility available from the Credit Agreement as of June 30, 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 also obtained a waiver from Pacific Western Bank for any breach of the credit agreement that would have resulted from its 2020 Annual Report on 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 June 30, 2021 and December 31, 2020, the Company’s estimated contingent liability for indirect taxes was $45.7 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 condensed 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 June 30, 2021, there were no Public Warrants outstanding. As of June 30, 2021, 1.8 million Private Warrants remained outstanding at a fair value of $72.0 million. Due to fair value changes throughout the three and six months ended June 30, 2021, the Company recorded a gain on remeasurement of warrant liabilities of $17.0 million and a loss on remeasurement of warrant liabilities of $10.0 million, respectively, and a loss on remeasurement of warrant liabilities of $363.4 million for the three and six months ended June 30, 2020.

Revenue Recognition

Revenue Recognition	6 Months Ended
	Jun. 30, 2021
Revenue from Contract with Customer [Abstract]
Revenue Recognition	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 June 30, Six months ended June 30, 2021 2020 2021 2020 Deferred revenue, beginning of the period $ 41,849 $ 24,094 $ 30,627 $ 20,760 Deferred revenue, end of the period 51,791 24,759 51,791 24,759 Revenue recognized in the period from amounts included in deferred revenue at the beginning of the period 20,664 1,909 26,613 8,635 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 and six months ended June 30, 2021 and 2020 is as follows: Three months ended June 30, Six months ended June 30, 2021 2020 2021 2020 Online gaming $ 258,229 $ 55,409 $ 530,890 $ 139,114 Gaming software 27,432 14,954 58,862 14,954 Other 11,944 568 20,129 5,405 Total Revenue $ 297,605 $ 70,931 $ 609,881 $ 159,473 The following table presents the Company’s revenue by geographic region for the periods indicated: Three months ended June 30, Six months ended June 30, 2021 2020 2021 2020 United States $ 269,532 $ 56,577 $ 549,648 $ 147,387 International 28,073 14,354 60,233 12,086 Total Revenue $ 297,605 $ 70,931 $ 609,881 $ 159,473 SBTech has offered its services through a reseller model in Asia. The agreement with the reseller was terminated as of April 1, 2021, with a transition period that has already ended.

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Jun. 30, 2021
Share-based Payment Arrangement [Abstract]
Stock-Based Compensation	Stock-Based CompensationThe 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 equity awards 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 restricted stock unit (“RSU”) and stock option activity for the six months ended June 30, 2021: Time-based PSP LTIP Total Weighted Average Exercise Price of Options Weighted Average FMV 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 900 1,675 — 563 — 6,151 9,289 48.71 53.74 Exercised options / vested RSUs (3,245) (917) (407) — (1,083) — (5,652) 3.88 35.79 Forfeited (92) (108) (1) (3) — (53) (257) 4.36 42.92 Outstanding at June 30, 2021 18,082 4,198 2,615 1,467 12,771 18,898 58,031 $ 4.26 $ 49.67 As of June 30, 2021, total unrecognized stock-based compensation expense of $976.8 million related to granted and unvested share-based compensation arrangements is expected to be recognized over a weighted-average period of 2.0 years. The following table shows stock compensation expense for the three and six months ended June 30, 2021 and 2020: Three months ended June 30, 2021 Three months ended June 30, 2020 Options RSUs Total Options RSUs Total Time Based (1) $ 4,034 $ 15,223 $ 19,257 $ 1,712 — $ 1,712 PSP (2) — 19,090 19,090 — — — LTIP (2) — 133,392 133,392 7,977 36,797 44,774 B Shares (3) — — — 8,000 — 8,000 Total $ 4,034 $ 167,705 $ 171,739 $ 17,689 $ 36,797 $ 54,486 Six months ended June 30, 2021 Six months ended June 30, 2020 Options RSUs Total Options RSUs Total Time Based (1) $ 6,467 $ 29,491 $ 35,958 $ 3,346 — $ 3,346 PSP (2) — 35,404 35,404 1,633 — 1,633 LTIP (2) — 252,220 252,220 9,552 36,797 46,349 B Shares (3) — — — 8,000 — 8,000 Total $ 6,467 $ 317,115 $ 323,582 $ 22,531 $ 36,797 $ 59,328 (1) Time-based awards vest and are expensed over a defined service period. (2) PSP and LTIP awards vest based on defined performance criteria and are expensed based on the probability of achieving such criteria. (3) Related to the Business Combination; Class B shares have no economic rights.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2021
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company's provision for income taxes for the three and six months ended June 30, 2021 and 2020 is as follows: Three months ended June 30, Six months ended June 30, 2021 2020 2021 2020 Income tax provision (benefit) $ 2,404 $ 323 $ (2,191) $ 332 The effective tax rates for the three months ended June 30, 2021 and 2020 were (0.73)% and (0.20)%, respectively and the effective tax rates for the six months ended June 30, 2021 and 2020 were 0.34% and (.14)%, respectively. The difference between the Company’s effective tax rates for the three and six month periods in 2021 and 2020 and the U.S. statutory tax rate of 21% was primarily due to a full valuation allowance related to the Company’s net U.S. deferred tax assets, offset partially by current state tax, current foreign tax, and current tax expense related to unrecognized tax benefits. Additionally, the Company recorded a discrete income tax benefit of $6.8 million during the first quarter of 2021, which is attributable to a non-recurring partial release of the Company's U.S. valuation allowance as a result of VSiN's preliminary purchase price accounting. The

Segment Information

Segment Information	6 Months Ended
	Jun. 30, 2021
Segment Reporting [Abstract]
Segment Information	Segment Information The Company operates its business and reports its results through two operating and reportable segments: B2C and B2B, in accordance with ASC Topic 280, Segment Reporting . The Company’s B2C segment is primarily comprised of the Old DK business and the Company’s B2B segment, which is primarily comprised of SBTech. The B2C segment primarily provides users with DFS, Sportsbook and iGaming products while the B2B segment is involved in the design, development and licensing of sports betting and casino gaming software for its sportsbook and casino gaming products. 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 June 30, Six months ended June 30, 2021 2020 2021 2020 Revenue: B2C $ 270,173 $ 55,977 $ 551,019 $ 144,519 B2B 27,432 14,954 58,862 14,954 Total revenue 297,605 70,931 609,881 159,473 Adjusted EBITDA: B2C (92,259) (53,973) (233,613) (103,434) B2B (3,043) (3,522) (951) (3,522) Total adjusted EBITDA (95,302) (57,495) (234,564) (106,956) Adjusted for: Depreciation and amortization 30,051 18,668 58,244 23,372 Interest (income) expense, net (1,642) 588 (2,627) 2,939 Income tax provision (benefit) 2,404 323 (2,191) 332 Stock-based compensation 171,739 54,486 323,582 59,328 Transaction-related costs 7,890 25,255 10,913 30,907 Litigation, settlement and related costs 3,599 2,022 4,221 3,352 Advocacy and other related legal expenses 11,035 — 11,035 — Loss on remeasurement of warrant liabilities (16,984) 363,361 9,996 363,361 Other non-recurring costs, special project costs and non-operating costs 2,132 2,600 4,133 2,931 Net loss attributable to common shareholders $ (305,526) $ (524,798) $ (651,870) $ (593,478) Due to the timing of the Business Combination, the three and six month period ended June 30, 2020 reflects B2B/SBTech activity beginning April 24, 2020.

Loss Per Share

Loss Per Share	6 Months Ended
	Jun. 30, 2021
Earnings Per Share [Abstract]
Loss Per Share	Loss Per Share The computation of loss per share and weighted-average shares of the Company’s Class A common stock outstanding for the periods presented are as follows: Three months ended June 30, Six months ended June 30, 2021 2020 2021 2020 Net loss $ (305,526) $ (524,798) $ (651,870) $ (593,478) Basic and diluted weighted-average common shares outstanding 401,447 291,992 399,545 238,104 Loss per share attributable to common stockholders: Basic and diluted $ (0.76) $ (1.80) $ (1.63) $ (2.49) 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 and Six months ended June 30, 2021 2020 Warrants 1,769 2,327 Stock options and RSUs 58,031 62,912 Convertible notes 13,337 — Total 73,137 65,239

Related-Party Transactions

Related-Party Transactions	6 Months Ended
	Jun. 30, 2021
Related Party Transactions [Abstract]
Related-Party Transactions	Related-Party Transactions Media Purchase Agreement (“MPA”) In July 2015, Old DK entered into an MPA with a related party for various media placements from 2015 through 2018. The MPA was amended to extend through 2021. The annual commitment for calendar years 2017 through 2021 was $15 million per year, plus an additional contingent commitment of $5 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 million in the aggregate through December 31, 2021 (equivalent to $5 million per year) and the contingent commitment was removed. As the Company has satisfied its $15.0 million commitment, the MPA has expired. The Company recorded expense of $0.0 million related to the MPA for the three and six months ended June 30, 2021 and recorded expense of $1.2 million and $3.4 million related to the MPA for the three and six months ended June 30, 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 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 and six months ended June 30, 2021, the Company incurred $0.0 million of fees with the Private Placement Agent and for the three and six months ended June 30, 2020, the Company incurred $11.7 million and $12.3 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 June 30, 2021 and December 31, 2020, the Company had $0.7 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. The Company has committed to invest up to $17.5 million into DBDK Venture Fund I, LP, a Delaware limited partnership and a subsidiary of DKFS LLC. As of June 30, 2021, the Company had invested a total of $1.7 million of the total commitment. Transactions with a Shareholder and their Immediate Family Members As of June 30, 2021 and December 31, 2020, the Company had $3.9 million and $1.9 million, respectively, of receivables due from former shareholders of SBTech, which includes a current director and shareholder of the Company. For the three and six months ended June 30, 2021, the Company had $1.7 million and $3.1 million in sales to entities related to an immediate family member of the director. The Company recorded $0.6 million of such sales in the three and six months ended June 30, 2020. The Company had an associated accounts receivable balance of $0.5 million and $0.5 million as of June 30, 2021 and December 31, 2020, respectively, included in accounts receivable in its condensed consolidated balance sheets. Other Related Party Transactions Subsequent to June 30, 2021, the Company signed a strategic agreement (the "Strategic Agreement") with a privately-held content development company (the “Entity”). Certain officers of the Company are members of the Entity's board of advisors and certain officers and directors of the Company are shareholders of the Entity. In connection with the Strategic Agreement, the Company has exclusive distribution rights for the Entity’s sports-related non-fungible token (“NFT”) content. Pursuant to the Strategic Agreement, the Company received warrants to purchase the Entity’s common stock.

Leases, Commitments and Conting

Leases, Commitments and Contingencies	6 Months Ended
	Jun. 30, 2021
Commitments and Contingencies Disclosure [Abstract]
Leases, Commitments and Contingencies	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 cost are as follows: Three months ended June 30, Six months ended June 30, 2021 2020 2021 2020 Operating lease cost $ 4,229 $ 3,573 $ 8,362 $ 5,938 Short term lease cost 440 572 867 1,151 Variable lease cost 982 1,022 1,683 2,098 Sublease income (93) (410) (204) (821) Total lease cost $ 5,558 $ 4,757 $ 10,708 $ 8,366 Other information related to leases are as follows: Six months ended June 30, 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 8,687 $ 3,964 Right-of-use assets obtained in exchange for new operating lease liabilities $ 2,413 $ 35,093 The weighted-average remaining lease term and weighted-average discount rate for the Company’s operating leases were 6.3 years and 6.5% as of June 30, 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 July 1, 2021 to December 31, 2021 $ 8,998 2022 16,704 2023 15,555 2024 13,028 2025 11,397 Thereafter 28,652 Total undiscounted future cash flows 94,334 Less: Imputed interest (17,010) Present value of undiscounted future cash flows $ 77,324 Other Contractual Obligations and Contingencies The Company is a party to several non-cancelable contracts with vendors where the Company is obligated to make future minimum payments under the terms of these contracts as follows: Years Ending December 31, From July 1, 2021 to December 31, 2021 $ 189,726 2022 235,092 2023 219,398 2024 150,256 2025 136,481 Thereafter 315,900 Total $ 1,246,853 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. The Company intends to vigorously defend this case. If the plaintiffs obtain a judgment in their favor in this matter, the Company could be subject to substantial damages and it could be restricted from offering DFS contests in certain states. The Company 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 1000 “mass arbitrations” against the Company with the American Arbitration Association (“AAA”) on behalf of purported DraftKings users that assert claims similar to those in the multi-district litigation described above. After the law firm filed the 1000 “mass arbitrations,” the AAA informed DraftKings in writing that it would close their files on, and decline to administer, the 1000 “mass arbitrations” unless the Company waived two provisions in its terms of use and that the parties would then be free to bring their claims in court. The Company elected not to waive the subject terms of use provisions. On November 6, 2020 the law firm filed a complaint against DraftKings in Massachusetts Superior Court (Suffolk County), entitled Aaron Abramson, et al. v. DraftKings . In Abramson , the law firm is seeking, among other things, to compel arbitration against DraftKings on behalf of nine hundred ninety-nine (999) individuals. The Company intends to vigorously defend all claims. If the claimants successfully compel arbitration and then obtain a judgment in their favor in these arbitrations, 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. Interactive Games LLC On June 14, 2019, Interactive Games LLC filed suit against the Company in the U.S. District Court for the District of Delaware, alleging that our Daily Fantasy Sports product offering infringes two patents and the Company’s Sportsbook product offering infringes two different patents. DraftKings intends to vigorously defend this case. In the event that a court ultimately determines that the Company is infringing the asserted patents, it may be subject to substantial damages, which may include treble damages and/or an injunction that could require the Company to modify certain features that we currently offer. The Company cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages. The Company also cannot provide an estimate of the possible loss or range of loss. Any adverse outcome in these matters could expose the Company to substantial damages or penalties that may have a material adverse impact on the Company’s operations and cash flows. 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. Winview Inc. On July 7, 2021, Winview Inc., a Delaware Corporation filed suit against the Company in the U.S. District Court for the District of New Jersey, which was subsequently amended on July 28, 2021, alleging that our Sportsbook product infringes two patents, our Daily Fantasy Sports product infringes one patent, and that our Sportsbook product and Daily Fantasy Sports product offering infringes another patent. DraftKings intends to vigorously defend this case. In the event that a court ultimately determines that the Company is infringing the asserted patents, it may be subject to substantial damages, which may include treble damages and/or an injunction that could require the Company to modify certain features that we currently offer. The Company cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages. The Company also cannot provide an estimate of the possible loss or range of loss. Any adverse outcome in these matters could expose the Company to substantial damages or penalties that may have a material adverse impact on the Company’s operations and cash flows. 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. Securities Matters On July 2, 2021, the first of two substantially similar federal securities law putative class actions was filed in the U.S. District Court for the Southern District of New York against the Company and certain of its officers. The actions allege violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on a behalf of a putative class of persons who purchased or otherwise acquired DraftKings stock between December 23, 2019 and June 15, 2021. The allegations relate to, among other things, allegedly false and misleading statements and/or failures to disclose information about the Company’s business and prospects, based primarily upon the allegations concerning SBTech that were contained in a report published about the Company on June 15, 2021 by Hindenburg Research (the “Hindenburg Report”). The Company intends to vigorously defend against these claims. On July 9, 2021, the Company received a subpoena from the SEC seeking documents concerning certain of the allegations raised in the Hindenburg Report. The Company intends to comply with the related requests and is cooperating with the SEC’s ongoing inquiry. The Company cannot predict with any degree of certainty the outcome of these matters or determine the extent of any potential liabilities. The Company also cannot provide an estimate of the possible loss or range of loss. Any adverse outcome in these matters could expose the Company to substantial damages or penalties that may have a material adverse impact on the Company’s operations and cash flows. 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. 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 and $4.2 million as of June 30, 2021 and December 31, 2020 for the Company’s leases of office space.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies and Practices (Policies)	6 Months Ended
	Jun. 30, 2021
Accounting Policies [Abstract]
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 (“Original Annual Report”) and as amended by the Form 10-K/A filed with the SEC on May 3, 2021 (“2020 Annual Report”). The accompanying 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 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 and six months ended June 30, 2021 includes the financial information and activities for SBTech; whereas, the financial information for the three and six months ended June 30, 2020 includes the financial information and activities for SBTech for the period from April 24, 2020 to (and including) June 30, 2020.
Reclassification	Certain amounts from a prior period, which are not material, have been reclassified to conform with the current period presentation.Prior to the second quarter of 2021, the Company (a) included changes in “cash reserved for users” as a component within the change in operating assets and liabilities on its condensed consolidated statement of cash flows as the Company historically viewed the change in cash reserved for users as offsetting the change in player liabilities and (b) presented “cash reserved for users” separate from cash and cash equivalents on the condensed consolidated balance sheet. Beginning with the second quarter of 2021, to reflect our total cash position (“cash and cash equivalents” and “cash reserved for users”) and to conform to Accounting Standards Update (“ASU”) 2016-18, Statement of Cash Flows (Topic 230) — Restricted Cash , the Company revised its presentation to exclude changes in “cash reserved for users” from the “change in operating assets and liabilities” and instead present the total balance as a component of cash and cash equivalents and restricted cash on its condensed consolidated statement of cash flows. This revision does not have a material impact on the Company's presentation of cash flows as the change in cash reserved for users will continue to be presented as a supplemental disclosure in the condensed consolidated statement of cash flows. In addition, the Company will continue to present cash reserved for users as a separate line item on the Company’s condensed consolidated balance sheet.
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 money market funds and short-term deposits 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 ASU 2020-06, Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40) (“ASU 2020-06”) to simplify accounting for certain financial instruments. ASU 2020-06 eliminates the current models that require separation of beneficial conversion and cash conversion features from convertible instruments and simplifies the derivative scope exception guidance pertaining to equity classification of contracts in an entity’s own equity. The new standard also introduces additional disclosures for convertible debt and freestanding instruments that are indexed to and settled in an entity’s own equity. ASU 2020-06 amends the diluted earnings per share guidance, including the requirement to use the if-converted method for all convertible instruments. ASU 2020-06 is effective January 1, 2022 and should be applied on a full or modified retrospective basis, with early adoption permitted beginning on January 1, 2021. The Company elected to early adopt the new standard as of January 1, 2021 using the modified retrospective approach. In the first quarter of 2021, the Company issued convertible senior notes, whereby the entire proceeds from issuance were recognized as a liability, net of any lender fees and debt financing costs, on our condensed consolidated balance sheet as there is no longer a discount from separation of the conversion feature within equity. Please refer to Note 5 included herein for additional information. In December 2019, the FASB issued ASU 2019-12, Income Taxes—Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”). ASU 2019-12 simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. ASU 2019-12 is effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The Company adopted this standard as of January 1, 2021. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements and related disclosures.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies and Practices (Tables)	6 Months Ended
	Jun. 30, 2021
Accounting Policies [Abstract]
Schedule of Error Corrections and Prior Period Adjustments	The following table presents the condensed consolidated statement of cash flows line items after giving effect to the revision of presentation as discussed above for the six months ended June 30, 2020, nine months ended September 30 2020, year ended December 31, 2020 and three months ended March 31, 2021. Six months ended June 30, 2020 Nine months ended September 30, 2020 Reported Adjustments Revised Reported Adjustments Revised Adjustments to reconcile net loss to net cash flows used in operating activities: Change in operating assets and liabilities, net of effect of business combinations: Cash reserved for users $ 12,005 $ (12,005) $ — $ (113,432) $ 113,432 $ — Net cash flows used in operating activities (134,971) (12,005) (146,976) (241,291) 113,432 (127,859) Net increase in cash, cash equivalents and restricted cash 1,167,733 (12,005) 1,155,728 1,064,374 113,432 1,177,806 Cash and cash equivalents and restricted cash at the beginning of period 76,533 144,000 (a) 220,533 76,533 144,000 (a) 220,533 Cash and cash equivalents and restricted cash, end of period $ 1,244,266 $ 131,995 $ 1,376,261 $ 1,140,907 $ 257,432 $ 1,398,339 Year ended December 31, 2020 Three months ended March 31, 2021 Reported Adjustments Revised Reported Adjustments Revised Adjustments to reconcile net loss to net cash flows used in operating activities: Change in operating assets and liabilities, net of effect of business combinations: Cash reserved for users $ (143,718) $ 143,718 $ — $ (18,014) $ 18,014 $ — Net cash flows used in operating activities (337,875) 143,718 (194,157) (77,751) 18,014 (59,737) Net increase in cash, cash equivalents and restricted cash 1,740,725 143,718 1,884,443 1,000,870 18,014 1,018,884 Cash and cash equivalents and restricted cash at the beginning of period 76,533 144,000 (a) 220,533 1,817,258 287,718 (b) 2,104,976 Cash and cash equivalents and restricted cash, end of period $ 1,817,258 $ 287,718 $ 2,104,976 $ 2,818,128 $ 305,732 $ 3,123,860 (a) Represents the cash reserved for user balance as of December 31, 2019 as previously included in the Company's 2020 Annual Report filed with the SEC. (b) Represents the cash reserved for user balance as of December 31, 2020 as previously included in the Company's 2020 Annual Report filed with the SEC.

Business Combinations (Tables)

Business Combinations (Tables)	6 Months Ended
	Jun. 30, 2021
Business Combination and Asset Acquisition [Abstract]
Summary of Consideration Transferred at Closing	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 Acquisition Purchase Price	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
Summary of Intangible Assets Acquired	The intangible assets acquired as part of the VSiN acquisition were as follows: Fair Value Weighted-Average Useful Life (in years) Developed technology - software $ 558 3.0 Customer relationships 11,170 6.0 Trademarks and trade names 2,900 4.0 Total $ 14,628

Intangible Assets and Goodwill

Intangible Assets and Goodwill (Tables)	6 Months Ended
	Jun. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Summary of intangible assets other than goodwill	The Company has the following intangible assets, net as of June 30, 2021: Weighted-Average Remaining Amortization Period Gross Carrying Amount Accumulated Amortization Net Developed technology 6.8 years $ 443,259 $ (63,672) $ 379,587 Internally developed software 2.7 years 91,265 (41,465) 49,800 Gaming licenses 2.9 years 24,880 (9,982) 14,898 Trademarks and tradenames 2.9 years 9,280 (2,264) 7,016 Customer relationships 3.8 years 114,596 (25,233) 89,363 Intangible assets, net $ 683,280 $ (142,616) $ 540,664 The Company has the following intangible assets, net as of December 31, 2020: Weighted-Average Remaining Amortization Period Gross Carrying Amount Accumulated 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	The changes in the carrying amount of goodwill for the six months ended June 30, 2021 by reporting unit are: B2C B2B Media Total Balance as of December 31, 2020 $ 353,083 $ 216,520 — $ 569,603 Goodwill resulting from acquisitions* 7,673 8,300 52,644 68,617 Cumulative translation adjustment — (6,812) — (6,812) Balance as of June 30, 2021 $ 360,756 $ 218,008 $ 52,644 $ 631,408 * = Preliminary allocation

Revenue Recognition (Tables)

Revenue Recognition (Tables)	6 Months Ended
	Jun. 30, 2021
Revenue from Contract with Customer [Abstract]
Summary of deferred revenue balances	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 June 30, Six months ended June 30, 2021 2020 2021 2020 Deferred revenue, beginning of the period $ 41,849 $ 24,094 $ 30,627 $ 20,760 Deferred revenue, end of the period 51,791 24,759 51,791 24,759 Revenue recognized in the period from amounts included in deferred revenue at the beginning of the period 20,664 1,909 26,613 8,635
Summary of disaggregation of revenue	Disaggregation of revenue for the three and six months ended June 30, 2021 and 2020 is as follows: Three months ended June 30, Six months ended June 30, 2021 2020 2021 2020 Online gaming $ 258,229 $ 55,409 $ 530,890 $ 139,114 Gaming software 27,432 14,954 58,862 14,954 Other 11,944 568 20,129 5,405 Total Revenue $ 297,605 $ 70,931 $ 609,881 $ 159,473
Summary of Company's revenue by geographic region	The following table presents the Company’s revenue by geographic region for the periods indicated: Three months ended June 30, Six months ended June 30, 2021 2020 2021 2020 United States $ 269,532 $ 56,577 $ 549,648 $ 147,387 International 28,073 14,354 60,233 12,086 Total Revenue $ 297,605 $ 70,931 $ 609,881 $ 159,473

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2021
Share-based Payment Arrangement [Abstract]
Summary of stock option activity	The following table shows restricted stock unit (“RSU”) and stock option activity for the six months ended June 30, 2021: Time-based PSP LTIP Total Weighted Average Exercise Price of Options Weighted Average FMV 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 900 1,675 — 563 — 6,151 9,289 48.71 53.74 Exercised options / vested RSUs (3,245) (917) (407) — (1,083) — (5,652) 3.88 35.79 Forfeited (92) (108) (1) (3) — (53) (257) 4.36 42.92 Outstanding at June 30, 2021 18,082 4,198 2,615 1,467 12,771 18,898 58,031 $ 4.26 $ 49.67
Summary of stock compensation expense	The following table shows stock compensation expense for the three and six months ended June 30, 2021 and 2020: Three months ended June 30, 2021 Three months ended June 30, 2020 Options RSUs Total Options RSUs Total Time Based (1) $ 4,034 $ 15,223 $ 19,257 $ 1,712 — $ 1,712 PSP (2) — 19,090 19,090 — — — LTIP (2) — 133,392 133,392 7,977 36,797 44,774 B Shares (3) — — — 8,000 — 8,000 Total $ 4,034 $ 167,705 $ 171,739 $ 17,689 $ 36,797 $ 54,486 Six months ended June 30, 2021 Six months ended June 30, 2020 Options RSUs Total Options RSUs Total Time Based (1) $ 6,467 $ 29,491 $ 35,958 $ 3,346 — $ 3,346 PSP (2) — 35,404 35,404 1,633 — 1,633 LTIP (2) — 252,220 252,220 9,552 36,797 46,349 B Shares (3) — — — 8,000 — 8,000 Total $ 6,467 $ 317,115 $ 323,582 $ 22,531 $ 36,797 $ 59,328 (1) Time-based awards vest and are expensed over a defined service period. (2) PSP and LTIP awards vest based on defined performance criteria and are expensed based on the probability of achieving such criteria. (3) Related to the Business Combination; Class B shares have no economic rights.

Income Taxes (Tables)

Income Taxes (Tables)	6 Months Ended
	Jun. 30, 2021
Income Tax Disclosure [Abstract]
Schedule of Company's (Benefit) provision for income taxes	The Company's provision for income taxes for the three and six months ended June 30, 2021 and 2020 is as follows: Three months ended June 30, Six months ended June 30, 2021 2020 2021 2020 Income tax provision (benefit) $ 2,404 $ 323 $ (2,191) $ 332

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
	Jun. 30, 2021
Segment Reporting [Abstract]
Summary of financial information for the Company's segments	Summarized financial information for the Company’s segments is shown in the following tables: Three months ended June 30, Six months ended June 30, 2021 2020 2021 2020 Revenue: B2C $ 270,173 $ 55,977 $ 551,019 $ 144,519 B2B 27,432 14,954 58,862 14,954 Total revenue 297,605 70,931 609,881 159,473 Adjusted EBITDA: B2C (92,259) (53,973) (233,613) (103,434) B2B (3,043) (3,522) (951) (3,522) Total adjusted EBITDA (95,302) (57,495) (234,564) (106,956) Adjusted for: Depreciation and amortization 30,051 18,668 58,244 23,372 Interest (income) expense, net (1,642) 588 (2,627) 2,939 Income tax provision (benefit) 2,404 323 (2,191) 332 Stock-based compensation 171,739 54,486 323,582 59,328 Transaction-related costs 7,890 25,255 10,913 30,907 Litigation, settlement and related costs 3,599 2,022 4,221 3,352 Advocacy and other related legal expenses 11,035 — 11,035 — Loss on remeasurement of warrant liabilities (16,984) 363,361 9,996 363,361 Other non-recurring costs, special project costs and non-operating costs 2,132 2,600 4,133 2,931 Net loss attributable to common shareholders $ (305,526) $ (524,798) $ (651,870) $ (593,478)

Loss Per Share (Tables)

Loss Per Share (Tables)	6 Months Ended
	Jun. 30, 2021
Earnings Per Share [Abstract]
Schedule of loss per share and weighted-average shares	The computation of loss per share and weighted-average shares of the Company’s Class A common stock outstanding for the periods presented are as follows: Three months ended June 30, Six months ended June 30, 2021 2020 2021 2020 Net loss $ (305,526) $ (524,798) $ (651,870) $ (593,478) Basic and diluted weighted-average common shares outstanding 401,447 291,992 399,545 238,104 Loss per share attributable to common stockholders: Basic and diluted $ (0.76) $ (1.80) $ (1.63) $ (2.49)
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 and Six months ended June 30, 2021 2020 Warrants 1,769 2,327 Stock options and RSUs 58,031 62,912 Convertible notes 13,337 — Total 73,137 65,239

Leases, Commitments and Conti_2

Leases, Commitments and Contingencies (Tables)	6 Months Ended
	Jun. 30, 2021
Commitments and Contingencies Disclosure [Abstract]
Schedule of components of lease cost and other information	The components of lease cost are as follows: Three months ended June 30, Six months ended June 30, 2021 2020 2021 2020 Operating lease cost $ 4,229 $ 3,573 $ 8,362 $ 5,938 Short term lease cost 440 572 867 1,151 Variable lease cost 982 1,022 1,683 2,098 Sublease income (93) (410) (204) (821) Total lease cost $ 5,558 $ 4,757 $ 10,708 $ 8,366 Other information related to leases are as follows: Six months ended June 30, 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 8,687 $ 3,964 Right-of-use assets obtained in exchange for new operating lease liabilities $ 2,413 $ 35,093
Schedule of maturity of lease liabilities	Maturity of lease liabilities are as follows: Years Ending December 31, From July 1, 2021 to December 31, 2021 $ 8,998 2022 16,704 2023 15,555 2024 13,028 2025 11,397 Thereafter 28,652 Total undiscounted future cash flows 94,334 Less: Imputed interest (17,010) Present value of undiscounted future cash flows $ 77,324
Summary of other contractual obligations and contingencies	The Company is a party to several non-cancelable contracts with vendors where the Company is obligated to make future minimum payments under the terms of these contracts as follows: Years Ending December 31, From July 1, 2021 to December 31, 2021 $ 189,726 2022 235,092 2023 219,398 2024 150,256 2025 136,481 Thereafter 315,900 Total $ 1,246,853

Summary of Significant Accoun_4

Summary of Significant Accounting Policies and Practices (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended		9 Months Ended	12 Months Ended
	Mar. 31, 2021	Jun. 30, 2021	Jun. 30, 2020	Sep. 30, 2020	Dec. 31, 2020
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Cash reserved for users	$ 0		$ 0	$ 0	$ 0
Net cash flows used in operating activities	(59,737)	$ (176,375)	(146,976)	(127,859)	(194,157)
Net increase in cash, cash equivalents and restricted cash	1,018,884	855,781	1,155,728	1,177,806	1,884,443
Cash and cash equivalents and restricted cash at the beginning of period	2,104,976	2,104,976	220,533	220,533	220,533
Cash and cash equivalents and restricted cash, end of period	3,123,860	2,960,757	1,376,261	1,398,339	2,104,976
Reported
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Cash reserved for users	(18,014)		12,005	(113,432)	(143,718)
Net cash flows used in operating activities	(77,751)		(134,971)	(241,291)	(337,875)
Net increase in cash, cash equivalents and restricted cash	1,000,870		1,167,733	1,064,374	1,740,725
Cash and cash equivalents and restricted cash at the beginning of period	1,817,258	1,817,258	76,533	76,533	76,533
Cash and cash equivalents and restricted cash, end of period	2,818,128		1,244,266	1,140,907	1,817,258
Adjustments
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Cash reserved for users	18,014		(12,005)	113,432	143,718
Net cash flows used in operating activities	18,014		(12,005)	113,432	143,718
Net increase in cash, cash equivalents and restricted cash	18,014		(12,005)	113,432	143,718
Cash and cash equivalents and restricted cash at the beginning of period	287,718	$ 287,718	144,000	144,000	144,000
Cash and cash equivalents and restricted cash, end of period	$ 305,732		$ 131,995	$ 257,432	$ 287,718

Business Combinations - Narrati

Business Combinations - Narrative (Details) - USD ($) $ in Thousands	Apr. 01, 2021	Mar. 24, 2021
VSiN
Business Acquisition [Line Items]
Equity interest acquired		100.00%
Cash consideration		$ 40,599
Aggregate consideration in the form of shares of Class A common stock		$ 29,399
Blue Ribbon
Business Acquisition [Line Items]
Equity interest acquired	100.00%
Cash consideration	$ 17,800
Aggregate consideration in the form of shares of Class A common stock	$ 3,800

Business Combinations - Summary

Business Combinations - Summary of Consideration Transferred at Closing (Details) - VSiN $ / shares in Units, $ in Thousands, shares in Millions	Mar. 24, 2021USD ($)$ / sharesshares
Business Acquisition [Line Items]
Cash consideration	$ 40,599
Share consideration	29,399
Total consideration	$ 69,998
Shares, options, and earnout shares issued for acquisition (in shares) | shares	0.5
Weighted average fair value (in dollars per share) | $ / shares	$ 63.32

Business Combinations - Summa_2

Business Combinations - Summary of Acquisition Purchase Price (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Mar. 24, 2021	Dec. 31, 2020
Business Acquisition [Line Items]
Goodwill	$ 631,408		$ 569,603
VSiN
Business Acquisition [Line Items]
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

Business Combinations - Summa_3

Business Combinations - Summary of Intangible Assets Acquired (Details) - VSiN $ in Thousands	Mar. 24, 2021USD ($)
Acquired Finite-Lived Intangible Assets [Line Items]
Fair Value	$ 14,628
Developed technology - software
Acquired Finite-Lived Intangible Assets [Line Items]
Fair Value	$ 558
Weighted-Average Useful Life (in years)	3 years
Customer relationships
Acquired Finite-Lived Intangible Assets [Line Items]
Fair Value	$ 11,170
Weighted-Average Useful Life (in years)	6 years
Trademarks and tradenames
Acquired Finite-Lived Intangible Assets [Line Items]
Fair Value	$ 2,900
Weighted-Average Useful Life (in years)	4 years

Intangible Assets and Goodwil_2

Intangible Assets and Goodwill - Finite Lived Intangible Assets (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Finite-Lived Intangible Assets, Net [Abstract]
Gross Carrying Amount	$ 683,280	$ 648,950
Accumulated Amortization	(142,616)	(93,020)
Net	$ 540,664	$ 555,930
Developed technology - software
Finite-Lived Intangible Assets, Net [Abstract]
Weighted-Average Remaining Amortization Period	6 years 9 months 18 days	7 years 3 months 18 days
Gross Carrying Amount	$ 443,259	$ 439,624
Accumulated Amortization	(63,672)	(37,704)
Net	$ 379,587	$ 401,920
Internally developed software
Finite-Lived Intangible Assets, Net [Abstract]
Weighted-Average Remaining Amortization Period	2 years 8 months 12 days	2 years 3 months 18 days
Gross Carrying Amount	$ 91,265	$ 72,268
Accumulated Amortization	(41,465)	(33,179)
Net	$ 49,800	$ 39,089
Gaming licenses
Finite-Lived Intangible Assets, Net [Abstract]
Weighted-Average Remaining Amortization Period	2 years 10 months 24 days	3 years 6 months
Gross Carrying Amount	$ 24,880	$ 23,685
Accumulated Amortization	(9,982)	(6,354)
Net	$ 14,898	$ 17,331
Trademarks and tradenames
Finite-Lived Intangible Assets, Net [Abstract]
Weighted-Average Remaining Amortization Period	2 years 10 months 24 days	2 years 9 months 18 days
Gross Carrying Amount	$ 9,280	$ 6,537
Accumulated Amortization	(2,264)	(1,123)
Net	$ 7,016	$ 5,414
Customer relationships
Finite-Lived Intangible Assets, Net [Abstract]
Weighted-Average Remaining Amortization Period	3 years 9 months 18 days	4 years 3 months 18 days
Gross Carrying Amount	$ 114,596	$ 106,836
Accumulated Amortization	(25,233)	(14,660)
Net	$ 89,363	$ 92,176

Intangible Assets and Goodwil_3

Intangible Assets and Goodwill - Additional information (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Finite-Lived Intangible Assets, Net [Abstract]
Amortization expense	$ 26.6	$ 16.4	$ 51.9	$ 19.6

Intangible Assets and Goodwil_4

Intangible Assets and Goodwill - Carrying Amount of Goodwill (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2021USD ($)
Goodwill [Roll Forward]
Beginning balance	$ 569,603
Goodwill resulting from acquisitions	68,617
Cumulative translation adjustment	(6,812)
Ending balance	631,408
B2C
Goodwill [Roll Forward]
Beginning balance	353,083
Goodwill resulting from acquisitions	7,673
Cumulative translation adjustment	0
Ending balance	360,756
B2B
Goodwill [Roll Forward]
Beginning balance	216,520
Goodwill resulting from acquisitions	8,300
Cumulative translation adjustment	(6,812)
Ending balance	218,008
Media
Goodwill [Roll Forward]
Beginning balance	0
Goodwill resulting from acquisitions	52,644
Cumulative translation adjustment	0
Ending balance	$ 52,644

Current and Long-term Liabili_2

Current and Long-term Liabilities - Convertible Notes (Details) - Convertible Noteholders $ / shares in Units, $ in Millions	1 Months Ended	3 Months Ended
	Mar. 31, 2021USD ($)$ / shares	Mar. 31, 2021USD ($)$ / shares
Line of Credit Facility [Line Items]
Aggregate principle amount	$ 1,265	$ 1,265
Lender fees	17	17
Debt financing costs	$ 1	$ 1
Conversion ratio	0.010543
Conversion price (in dollars per share) | $ / shares	$ 94.85	$ 94.85
Strike price (in dollars per share) | $ / shares	94.85	94.85
Cap price (in dollars per share) | $ / shares	$ 135.50	$ 135.50
Net cost incurred		$ 124

Current and Long-term Liabili_3

Current and Long-term Liabilities - Revolving Line of Credit (Details) - USD ($) $ in Millions	1 Months Ended
	Sep. 30, 2020	Jun. 30, 2021	Dec. 31, 2020
Revolving Line of Credit
Line of Credit Facility [Line Items]
Maximum borrowing capacity		$ 60	$ 60
Principal outstanding		0	0
Net facility available		$ 55.8	$ 55.8
Revolving Line of Credit | Prime Rate
Line of Credit Facility [Line Items]
Variable interest rate spread	1.00%
Variable annual interest rate floor	6.50%
Quarterly in arrears fee per annum	0.25%
Revolving Line of Credit
Line of Credit Facility [Line Items]
Maximum borrowing capacity	$ 60

Current and Long-term Liabili_4

Current and Long-term Liabilities - Indirect Taxes and Warrant Liabilities (Details) - USD ($) $ / shares in Units, $ in Thousands	May 14, 2019	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Line of Credit Facility [Line Items]
Estimated contingent liability for indirect taxes		$ 45,700		$ 45,700		$ 45,900
Gain (loss) on remeasurement of warrant liabilities		16,984	$ (363,361)	(9,996)	$ (363,361)
Public and Private Warrants
Line of Credit Facility [Line Items]
Gain (loss) on remeasurement of warrant liabilities		$ 17,000	$ (363,400)	$ (10,000)	$ (363,400)
Public Warrants
Line of Credit Facility [Line Items]
Number of warrants issued (in shares)	13,300,000
Number of shares issuable per warrant (in shares)	1
Exercise price of warrants (in dollars per share)	$ 11.50
Number of warrants outstanding (in shares)		0		0
Private Placement Warrants
Line of Credit Facility [Line Items]
Number of warrants issued (in shares)	6,300,000
Number of warrants outstanding (in shares)		1,800,000		1,800,000
Warrants outstanding at a fair value		$ 72,000		$ 72,000

Revenue Recognition - Deferred

Revenue Recognition - Deferred Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Revenue from Contract with Customer [Abstract]
Deferred revenue, beginning of the period	$ 41,849	$ 24,094	$ 30,627	$ 20,760
Deferred revenue, end of the period	51,791	24,759	51,791	24,759
Revenue recognized in the period from amounts included in deferred revenue at the beginning of the period	$ 20,664	$ 1,909	$ 26,613	$ 8,635

Revenue Recognition - Revenue D

Revenue Recognition - Revenue Disaggregation (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Disaggregation of Revenue [Line Items]
Revenue	$ 297,605	$ 70,931	$ 609,881	$ 159,473
Online gaming
Disaggregation of Revenue [Line Items]
Revenue	258,229	55,409	530,890	139,114
Gaming software
Disaggregation of Revenue [Line Items]
Revenue	27,432	14,954	58,862	14,954
Other
Disaggregation of Revenue [Line Items]
Revenue	$ 11,944	$ 568	$ 20,129	$ 5,405

Revenue Recognition - Revenue b

Revenue Recognition - Revenue by Geographic Region (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Disaggregation of Revenue [Line Items]
Revenue	$ 297,605	$ 70,931	$ 609,881	$ 159,473
United States
Disaggregation of Revenue [Line Items]
Revenue	269,532	56,577	549,648	147,387
International
Disaggregation of Revenue [Line Items]
Revenue	$ 28,073	$ 14,354	$ 60,233	$ 12,086

Stock-Based Compensation - Narr

Stock-Based Compensation - Narrative (Details) $ in Millions	6 Months Ended
	Jun. 30, 2021USD ($)segment
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized stock-based compensation expense | $	$ 976.8
Total unrecognized stock-based compensation expense expected to be recognized over a weighted-average period	2 years
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of types of stock-based compensation | segment	3
Vesting period	4 years
PSP | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance objectives in years	1 year
PSP | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance objectives in years	2 years

Stock-Based Compensation - Stoc

Stock-Based Compensation - Stock option activity (Details) shares in Thousands	6 Months Ended
	Jun. 30, 2021$ / sharesshares
Options Activity
Number of shares outstanding, beginning of period (in shares)	54,651
Number of shares granted (in shares)	9,289
Number of shares exercised (in shares)	(5,652)
Number of shares forfeited (in shares)	(257)
Number of shares outstanding, end of period (in shares)	58,031
Time Based Options
Options Activity
Number of shares outstanding, beginning of period (in shares)	20,519
Number of shares granted (in shares)	900
Number of shares exercised (in shares)	(3,245)
Number of shares forfeited (in shares)	(92)
Number of shares outstanding, end of period (in shares)	18,082
Time Based RSUs
Options Activity
Number of shares outstanding, beginning of period (in shares)	3,548
Number of shares granted (in shares)	1,675
Number of shares exercised (in shares)	(917)
Number of shares forfeited (in shares)	(108)
Number of shares outstanding, end of period (in shares)	4,198
PSP Options
Options Activity
Number of shares outstanding, beginning of period (in shares)	3,023
Number of shares granted (in shares)	0
Number of shares exercised (in shares)	(407)
Number of shares forfeited (in shares)	(1)
Number of shares outstanding, end of period (in shares)	2,615
PSP RSUs
Options Activity
Number of shares outstanding, beginning of period (in shares)	907
Number of shares granted (in shares)	563
Number of shares exercised (in shares)	0
Number of shares forfeited (in shares)	(3)
Number of shares outstanding, end of period (in shares)	1,467
LTIP Options
Options Activity
Number of shares outstanding, beginning of period (in shares)	13,854
Number of shares granted (in shares)	0
Number of shares exercised (in shares)	(1,083)
Number of shares forfeited (in shares)	0
Number of shares outstanding, end of period (in shares)	12,771
LTIP RSUs
Options Activity
Number of shares outstanding, beginning of period (in shares)	12,800
Number of shares granted (in shares)	6,151
Number of shares exercised (in shares)	0
Number of shares forfeited (in shares)	(53)
Number of shares outstanding, end of period (in shares)	18,898
Stock options
Weighted-Average Exercise Price
Weighted average exercise price outstanding, beginning of period (in dollars per share) | $ / shares	$ 3.57
Weighted average exercise price granted (in dollars per share) | $ / shares	48.71
Weighted average exercise price exercised (in dollars per share) | $ / shares	3.88
Weighted average exercise price forfeited (in dollars per share) | $ / shares	4.36
Weighted average exercise price outstanding, end of period (in dollars per share) | $ / shares	4.26
RSUs
Weighted-Average Exercise Price
Weighted average exercise price outstanding, beginning of period (in dollars per share) | $ / shares	47.01
Weighted average exercise price granted (in dollars per share) | $ / shares	53.74
Weighted average exercise price exercised (in dollars per share) | $ / shares	35.79
Weighted average exercise price forfeited (in dollars per share) | $ / shares	42.92
Weighted average exercise price outstanding, end of period (in dollars per share) | $ / shares	$ 49.67

Stock-Based Compensation - St_2

Stock-Based Compensation - Stock compensation expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock compensation expense, Options	$ 4,034	$ 17,689	$ 6,467	$ 22,531
Stock compensation expense, RSU	167,705	36,797	317,115	36,797
Stock compensation expense	171,739	54,486	323,582	59,328
Time Based
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock compensation expense, Options	4,034	1,712	6,467	3,346
Stock compensation expense, RSU	15,223	0	29,491	0
Stock compensation expense	19,257	1,712	35,958	3,346
PSP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock compensation expense, Options	0	0	0	1,633
Stock compensation expense, RSU	19,090	0	35,404	0
Stock compensation expense	19,090	0	35,404	1,633
LTIP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock compensation expense, Options	0	7,977	0	9,552
Stock compensation expense, RSU	133,392	36,797	252,220	36,797
Stock compensation expense	133,392	44,774	252,220	46,349
B Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock compensation expense, Options	0	8,000	0	8,000
Stock compensation expense, RSU	0	0	0	0
Stock compensation expense	$ 0	$ 8,000	$ 0	$ 8,000

Income Taxes - Reconciliation o

Income Taxes - Reconciliation of the federal income tax rate (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Reconciliation of the federal income tax rate to the Company's effective tax rate
Income tax provision (benefit)	$ 2,404		$ 323	$ (2,191)	$ 332
Effective tax rate	(0.73%)		(0.20%)	0.34%	(0.14%)
Statutory tax rate	21.00%		21.00%	21.00%	21.00%
Discrete income tax benefit		$ 6,800

Segment Information (Details)

Segment Information (Details) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2021USD ($)	Mar. 31, 2021USD ($)	Jun. 30, 2020USD ($)	Mar. 31, 2020USD ($)	Jun. 30, 2021USD ($)segment	Jun. 30, 2020USD ($)
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	$ 297,605		$ 70,931		$ 609,881	$ 159,473
Total adjusted EBITDA	(95,302)		(57,495)		(234,564)	(106,956)
Depreciation and amortization	30,051		18,668		58,244	23,372
Interest (income) expense, net	(1,642)		588		(2,627)	2,939
Income tax provision (benefit)	2,404		323		(2,191)	332
Stock-based compensation	171,739		54,486		323,582	59,328
Transaction-related costs	7,890		25,255		10,913	30,907
Litigation, settlement and related costs	3,599		2,022		4,221	3,352
Advocacy and other related legal expenses	11,035		0		11,035	0
Loss on remeasurement of warrant liabilities	(16,984)		363,361		9,996	363,361
Other non-recurring costs, special project costs and non-operating costs	2,132		2,600		4,133	2,931
Net loss attributable to common shareholders	(305,526)	$ (346,344)	(524,798)	$ (68,680)	(651,870)	(593,478)
B2C
Segment Reporting Information, Profit (Loss) [Abstract]
Total revenue	270,173		55,977		551,019	144,519
Total adjusted EBITDA	(92,259)		(53,973)		(233,613)	(103,434)
B2B
Segment Reporting Information, Profit (Loss) [Abstract]
Total revenue	27,432		14,954		58,862	14,954
Total adjusted EBITDA	$ (3,043)		$ (3,522)		$ (951)	$ (3,522)

Loss Per Share (Details)

Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2021	Jun. 30, 2020
Earnings Per Share [Abstract]
Net loss	$ (305,526)	$ (346,344)	$ (524,798)	$ (68,680)	$ (651,870)	$ (593,478)
Weighted-average common shares outstanding, Basic (in shares)	401,447		291,992		399,545	238,104
Weighted-average common shares outstanding, Diluted (in shares)	401,447		291,992		399,545	238,104
Loss per share attributable to common stockholders:
Basic (in dollars per share)	$ (0.76)		$ (1.80)		$ (1.63)	$ (2.49)
Diluted (in dollars per share)	$ (0.76)		$ (1.80)		$ (1.63)	$ (2.49)

Loss Per Share - Diluted shares

Loss Per Share - Diluted shares outstanding (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	73,137	65,239	73,137	65,239
Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	1,769	2,327	1,769	2,327
Stock options and RSUs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	58,031	62,912	58,031	62,912
Convertible notes
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	13,337	0	13,337	0

Related-Party Transactions (Det

Related-Party Transactions (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020	Jan. 31, 2019	Jul. 31, 2015
Related Party Transaction [Line Items]
Total administrative services expenses	$ 0	$ 11.7	$ 0	$ 12.3
Revenue from related parties	1.7	0.6	3.1	0.6
Shareholders and Directors
Related Party Transaction [Line Items]
Receivables from shareholders and directors	3.9		3.9		$ 1.9
SB Tech
Related Party Transaction [Line Items]
Accounts receivable	0.5		0.5		0.5
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	$ 1.2	0	$ 3.4
Equity Method Investee
Related Party Transaction [Line Items]
Receivables from Equity Method Investment	0.7		0.7		$ 1.1
Equity Method Investee | DBDK Venture Fund
Related Party Transaction [Line Items]
Investment commitment	$ 17.5		17.5
Investment amount			$ 1.7

Leases, Commitments and Conti_3

Leases, Commitments and Contingencies - Narrative (Details) $ in Millions	Jul. 07, 2021patent	Nov. 06, 2020claim	Oct. 21, 2019claim	Jun. 14, 2019patent	Jun. 30, 2021USD ($)	Dec. 31, 2020USD ($)
Property, Plant and Equipment [Line Items]
Weighted-average remaining lease term (in years): Operating leases					6 years 3 months 18 days
Weighted-average discount rate: Operating leases					6.50%
Maximum
Property, Plant and Equipment [Line Items]
Lease agreement term					10 years
Letter of Credit | Pacific Western Bank
Property, Plant and Equipment [Line Items]
Letters of credit | $					$ 4.2	$ 4.2
Mass Arbitration Demands Filed by One Law Firm
Property, Plant and Equipment [Line Items]
Number of mass arbitrations filed against the company | claim			1,000
Number of individuals filed against the company | claim		999
Interactive Games LLC | Daily Fantasy Sports
Property, Plant and Equipment [Line Items]
Number of patents allegedly infringed				2
Interactive Games LLC | Sportsbook product
Property, Plant and Equipment [Line Items]
Number of patents allegedly infringed				2
Winview Inc. | Daily Fantasy Sports | Subsequent Event
Property, Plant and Equipment [Line Items]
Number of patents allegedly infringed	1
Winview Inc. | Sportsbook product | Subsequent Event
Property, Plant and Equipment [Line Items]
Number of patents allegedly infringed	2
Winview Inc. | Sportsbook Product And Daily Fantasy Sports Product | Subsequent Event
Property, Plant and Equipment [Line Items]
Number of patents allegedly infringed	1

Leases, Commitments and Conti_4

Leases, Commitments and Contingencies - Components of Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Commitments and Contingencies Disclosure [Abstract]
Operating lease cost	$ 4,229	$ 3,573	$ 8,362	$ 5,938
Short term lease cost	440	572	867	1,151
Variable lease cost	982	1,022	1,683	2,098
Sublease income	(93)	(410)	(204)	(821)
Total lease cost	$ 5,558	$ 4,757	$ 10,708	$ 8,366

Leases, Commitments and Conti_5

Leases, Commitments and Contingencies - Other Information Related to Leases (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 8,687	$ 3,964
Right-of-use assets obtained in exchange for new operating lease liabilities	$ 2,413	$ 35,093

Leases, Commitments and Conti_6

Leases, Commitments and Contingencies - Maturity of Lease Liabilities (Details) $ in Thousands	Jun. 30, 2021USD ($)
Lessee, Operating Lease, Liability, Payment, Due [Abstract]
From July 1, 2021 to December 31, 2021	$ 8,998
2022	16,704
2023	15,555
2024	13,028
2025	11,397
Thereafter	28,652
Total undiscounted future cash flows	94,334
Less: Imputed interest	(17,010)
Present value of undiscounted future cash flows	$ 77,324

Leases, Commitments and Conti_7

Leases, Commitments and Contingencies - Other Contractual Obligations and Contingencies (Details) $ in Thousands	Jun. 30, 2021USD ($)
Commitments and Contingencies Disclosure [Abstract]
From July 1, 2021 to December 31, 2021	$ 189,726
2022	235,092
2023	219,398
2024	150,256
2025	136,481
Thereafter	315,900
Total	$ 1,246,853