v3.25.0.1
Business Combinations (Tables)
 12 Months Ended
Dec. 31, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]  
Summary of Consideration Transferred at Closing The following is a summary of the consideration issued or paid on the Jackpocket Closing Date:
Cash consideration$452,322 
Equity consideration (1)
320,783 
Total consideration$773,105 

(1)Includes the issuance of approximately 7.5 million shares of DraftKings Inc.’s Class A common stock issued at $41.90 per share and 6.2 million of options exercisable for shares of DraftKings Inc.’s Class A common stock, which were issued to certain Jackpocket employee option holders in exchange for their Jackpocket options.
The following is a summary of the consideration issued or paid on the Simplebet Closing Date:
Cash consideration$35,965 
Equity consideration (1)
45,145 
Contingent consideration (2)
53,535 
Total consideration$134,645 

(1)Includes the issuance of approximately 1.0 million shares of DraftKings Inc.’s Class A common stock issued at $43.97 per share.
(2)Contingent consideration of up to 3.5 million shares of DraftKings Inc.’s Class A common stock may be payable over the next two years, subject to the achievement of certain future performance targets for the Company as a whole. The Company recorded a fair value estimate of the contingent consideration, as disclosed in “Note 8 – Fair Value Measurement”.
The following is a summary of the consideration issued on the GNOG Closing Date:
Share consideration (1)
$460,128 
Other consideration (2)
143,337 
Total consideration$603,465 

(1)Includes the issuance of approximately 29.3 million shares of DraftKings Inc.’s Class A common stock issued at a price of $15.73.
(2)Includes (i) $170.9 million of payments made by the Company on behalf of GNOG, including repayment of the outstanding portion of GNOG’s term loan (including the associated prepayment premium) and payment of certain of GNOG’s transaction expenses incurred in connection with the GNOG Transaction and (ii) warrants that were exercisable for shares of GNOG Class A common stock prior to the GNOG Closing Date, which were assumed by DraftKings in connection with the GNOG Transaction and became eligible to be converted into approximately 2.1 million shares of DraftKings Inc.’s Class A common stock in the aggregate. These payments were partially offset by commercial credits received by the Company from Fertitta Entertainment, Inc. (“FEI”), which can be applied by the Company from time to time to offset future amounts otherwise owed by it to FEI or its affiliates under commercial arrangements among such parties, subject to certain limited exceptions.
Summary of Purchase Price Allocation
The following table summarizes the preliminary fair value of the assets acquired and liabilities assumed in connection with the consummation of the Jackpocket Transaction on the Jackpocket Closing Date. The values set forth below are preliminary, pending finalization of valuation analyses:
Cash and cash equivalents$45,999 
Cash reserved for users23,349 
Receivables reserved for users9,092 
Prepaid expenses and other current assets4,151 
Property and equipment1,523 
Intangible assets269,736 
Operating lease right-of-use assets2,579 
Deposits and other non-current assets136 
Total identifiable assets acquired356,565 
Liabilities assumed:
Accounts payable and accrued expenses33,961 
Liabilities to users16,877 
Operating lease liabilities2,580 
Other long-term liabilities80,463 
Total liabilities assumed133,881 
Net assets acquired (a)222,684 
Purchase consideration (b)773,105 
Goodwill (b) – (a)$550,421 
The following table summarizes the preliminary fair value of the assets acquired and liabilities assumed in connection with the consummation of the Simplebet Transaction on the Simplebet Closing Date. The values set forth below are preliminary, pending finalization of valuation analyses:
Cash and cash equivalents$5,002 
Accounts receivable931 
Prepaid expenses and other current assets282 
Operating lease right-of-use assets144 
Property and equipment32 
Intangible assets62,120 
Total identifiable assets acquired68,511 
Liabilities assumed:
Accounts payable and accrued expenses5,374 
Operating lease liabilities144 
Other long-term liabilities11,500 
Total liabilities assumed17,018 
Net assets acquired (a)51,493 
Estimated purchase consideration (b)134,645 
Estimated goodwill (b) - (a)$83,152 
The following table summarizes the consideration issued or paid in connection with the GNOG Transaction and the fair value of the assets acquired and liabilities assumed in connection with the consummation of the GNOG Transaction on the GNOG Closing Date:

Cash and cash equivalents$66,709 
Cash reserved for users7,633 
Receivables reserved for users2,814 
Accounts receivables7,783 
Prepaid expenses and other current assets64 
Property and equipment, net1,433 
Intangible assets, net315,000 
Operating lease right-of-use assets1,185 
Deposits and other non-current assets47,395 
Total identifiable assets acquired450,016 
Liabilities assumed:
Accounts payable and accrued expenses32,989 
Liabilities to users4,314 
Operating lease liabilities1,185 
Other long-term liabilities78,781 
Total liabilities assumed117,269 
Net assets acquired (a)332,747 
Purchase consideration (b)603,465 
Goodwill (b) – (a)$270,718 
Summary of Intangible Assets
Fair ValueWeighted-
Average
Useful Life
Customer Relationships$174,000 8.0 years
Developed Technology67,000 5.0 years
Trade Name27,000 7.0 years
Market Access1,736 2.9 years
Total$269,736 
Fair ValueWeighted-
Average
Useful Life
Gaming licenses$145,000 12.2 years
Customer relationships170,000 5.9 years
Total$315,000 
Summary of Pro Forma Financial Information
The financial information in the table below summarizes the combined results of operations of Old DraftKings and GNOG, on an actual and a pro forma basis, as applicable, as though the companies had been combined as of January 1, 2022. The pro forma financial information is presented for informational purposes only and is not indicative of the results of operations that would have been achieved if the GNOG Transaction had been consummated as of the beginning of the periods presented or of results that may occur in the future.
Year Ended December 31, 2022
Pro Forma
Revenue$2,284,596 
Net loss$(1,375,161)