DraftKings operates as one of the most recognizable names in sports betting today.
The company’s ownership structure reflects this growth, with institutional investors holding 71.16% of shares, public companies and individual investors controlling 26.63%, and company insiders maintaining 2.21%. But these numbers only tell part of the story.
Three founders started DraftKings in a spare bedroom back in 2012. Jason Robins, Matthew Kalish, and Paul Liberman built what became a publicly traded company on the Nasdaq Stock Exchange under ticker symbol “DKNG.” The path from startup to public company reshaped how ownership works at DraftKings.
Major institutional players now hold significant stakes. Vanguard Group owns 8.68%, BlackRock controls 5.99%, and FMR, LLC holds 4.42%. The company also attracted notable figures like NBA legend Michael Jordan, who joined as both investor and board advisor.
Today, DraftKings operates across 27 states and Ontario, Canada. The company reported $3.67 billion in revenue for 2023, with projections reaching $4.77 billion in 2024. These numbers raise important questions about how the original founders maintain influence while institutional investors hold most of the equity.
This article breaks down the complete ownership picture at DraftKings. You’ll learn how the founders maintain control despite being a public company, which major investors shape company direction, and how the ownership structure evolved from startup to sports betting leader.
Who really owns DraftKings today?
The ownership numbers we just covered don’t tell the complete story. Understanding who controls DraftKings requires looking beyond share percentages to see how power actually works at the company.
Founders still run the show
All three co-founders remain in key leadership positions today. Jason Robins serves as Chief Executive Officer, handling strategy and operations. Matthew Kalish holds the President role for DraftKings North America, managing revenue and marketing across the region. Paul Liberman runs Global Technology and Product as President, overseeing the platform and product development.
The founders didn’t step back after going public. They continue to shape the company’s direction and execution from these leadership roles.
Major institutions provide the backing
Vanguard Group leads institutional ownership with 8.4% of outstanding shares. BlackRock holds 6.4%, while Wellington Management Group owns approximately 4.8%. Together, institutions control over 83% of DraftKings shares.
This heavy institutional backing provides financial stability. It also means the company must balance founder vision with shareholder expectations on everything from growth strategy to quarterly results.
The real power lies in voting control
Here’s where it gets interesting. Share ownership and voting power work differently at DraftKings.
The company uses a dual-class share structure that concentrates control. Class A common stock carries one vote per share. Class B common stock—available only to Jason Robins—carries ten votes per share. This arrangement gives Robins approximately 90% of the company’s voting power despite owning a much smaller equity percentage.
What does this mean in practice? Robins controls major corporate decisions, including board elections and potential mergers. He essentially holds veto power over any significant company changes.
So while institutional investors own most of DraftKings financially, governance remains firmly under founder control. It’s a structure that protects the original vision while accessing public market capital.
The founding story: Three friends with $25,000 and an idea
Three colleagues at Vistaprint wanted something more than their day jobs. Jason Robins, Matthew Kalish, and Paul Liberman felt they’d missed the previous tech boom, but they weren’t ready to give up on their entrepreneurial dreams.
The DraftKings founders started their company in Paul Liberman’s spare bedroom in Watertown, Massachusetts. Not exactly Silicon Valley, but it worked for what they had in mind.
How the idea became a business
Kalish suggested creating a website that condensed season-long fantasy leagues into daily contests. Robins immediately saw the potential. The concept was simple: instead of managing a fantasy team for months, users could compete in daily matchups.
They pooled $25,000 of their own money and incorporated DraftKings in 2011. Working nights and weekends while keeping their Vistaprint jobs, they built their first product to launch with Major League Baseball’s opening day in 2012. That one-on-one baseball competition became the foundation for everything that followed.
Getting investors to believe in daily fantasy sports
Finding funding proved challenging. Robins faced rejection from “30 or 40” venture firms before connecting with Ryan Moore of Atlas Advisors. Moore believed in their vision and invested $1 million.
That breakthrough opened doors. A Series A round brought in $7 million, followed by $24 million in Series B funding. Instead of conserving cash, Robins made a bold decision: spend aggressively on large prize pools to attract users.
The strategy worked. Major League Baseball became the first professional sports league to invest in DraftKings in April 2013. This partnership added legitimacy to both the company and the daily fantasy sports concept.
Building momentum in a new market
Growth accelerated quickly. By February 2014, DraftKings reported 50,000 active daily users and one million registered players. The company awarded $50 million in prizes during 2013 alone.
DraftKings expanded through strategic acquisitions. They purchased DraftStreet in July 2014, increasing their user base by 50%. A month later, they acquired StarStreet and secured $41 million in additional funding.
These partnerships with major sports leagues positioned DraftKings as a legitimate player in the daily fantasy sports market. The stage was set for the company’s next phase of growth.
Going public: The SPAC merger that changed everything
DraftKings took an unconventional path to public markets. The company chose a three-way merger instead of a traditional IPO, a decision that would reshape its ownership structure permanently.
The SPAC deal with Diamond Eagle Acquisition Corp
The company merged with Diamond Eagle Acquisition Corp (DEAC), a special purpose acquisition company led by entertainment veterans Harry Sloan and Jeff Sagansky. DEAC had raised approximately $400 million in May 2019, creating the foundation for what became a complex transaction.
The deal involved three parties: DraftKings, DEAC, and SBTech, an international sports betting technology provider. This structure created “the only vertically integrated pure-play sports betting and online gaming company based in the United States”.
The merger carried a $3.3 billion valuation. Institutional investors committed $304 million, including Capital Research and Management Company, Wellington Management Company, and Franklin Templeton.
Why DraftKings chose this route over a traditional IPO
CEO Jason Robins had specific reasons for avoiding the traditional IPO process. The SPAC structure allowed DraftKings to acquire SBTech and go public simultaneously. This efficiency mattered, especially given market volatility in early 2020.
“If this were a traditional IPO, forget ringing the bell, I don’t even think we’d be able to close the transaction,” Robins explained. He had watched highly anticipated companies like Uber, Lyft, Slack, and Peloton struggle with their 2019 IPOs.
The timing also positioned DraftKings to enter newly legalized sports betting markets in Michigan and Colorado. Speed mattered in capturing market share.
How the merger reshaped ownership
The merger completed on April 23, 2020, leaving DraftKings with over $500 million in unrestricted cash. This capital provided fuel for rapid expansion across newly legal markets.
The ownership structure expanded dramatically as private investors were joined by public shareholders. Robins maintained his CEO position, ensuring continuity in leadership despite the ownership changes.
The combined entity incorporated in Nevada rather than Delaware, creating a new corporate structure that would accommodate both the founder’s vision and institutional investor expectations.
Strategic investors and boardroom influence
DraftKings attracts more than just financial backing from its investors. A select group of strategic advisors brings industry expertise and star power that shapes how the company operates and grows.
Michael Jordan’s role and other celebrity investors
Michael Jordan joined DraftKings as a special advisor to the board of directors in September 2020, taking an equity stake in exchange for his strategic counsel. As a six-time NBA Finals MVP and Chairman of Hornets Sports & Entertainment, Jordan provides guidance on company strategy, product development, inclusion initiatives, and marketing activities.
The market responded immediately. DraftKings shares jumped approximately 6% higher in early trading when Jordan’s appointment was announced. CEO Jason Robins explained the value: “The strategic counsel and business acumen Michael brings to our board is invaluable”.
Jordan isn’t the only sports legend involved. Baseball Hall-of-Famer Cal Ripken Jr. and entrepreneur Richard Rosenblatt also serve as special advisors. This creates a network of strategic investors with deep sports industry connections who understand both the business and cultural aspects of sports betting.
Institutional investors like Vanguard and BlackRock
Major financial institutions provide the stability that allows DraftKings to pursue long-term growth strategies. The Vanguard Group holds the largest institutional stake at 8.7% of outstanding shares. BlackRock controls 6.4%, and Wellington Management Group owns 4.7%.
These institutional giants control approximately 80% of the company. Interestingly, hedge funds have minimal investment in DraftKings, suggesting the company appeals more to long-term institutional investors than short-term speculators.
How the board shapes company direction
The board’s composition balances founder vision with strategic expertise from different industries. This mix drives key decisions on product innovation, market expansion, and corporate governance.
Jordan’s appointment specifically aimed to enhance strategic input on product development, inclusion initiatives, and marketing activities. His experience building the Jordan brand and understanding consumer psychology provides insights that pure financial expertise cannot match.
This blend of celebrity advisors, institutional investors, and founder leadership creates a unique ownership structure. The company benefits from both the credibility that comes with major institutional backing and the strategic insights that sports industry veterans provide.
DraftKings ownership: What it means for the future
DraftKings shows how founders can maintain control even after going public and attracting major institutional investment.
The numbers tell one story: institutional investors own 71.16% of shares, with Vanguard, BlackRock, and other giants controlling most of the equity. But the real story lies in the voting structure. Jason Robins holds approximately 90% of voting power through the dual-class share system, giving him final say on major decisions.
This setup worked well for the founders’ transition to public markets. The SPAC route in April 2020 let them acquire SBTech and go public simultaneously—something that would have been difficult with a traditional IPO during market volatility. The strategy paid off, providing over $500 million in cash and positioning DraftKings for rapid expansion.
Celebrity partnerships like Michael Jordan’s board advisor role demonstrate how strategic relationships can boost both credibility and stock performance. His appointment alone pushed shares up 6% in early trading, showing investors value these connections beyond marketing appeal.
The company’s growth from $25,000 in startup capital to $3.67 billion in 2023 revenue—with projections reaching $4.77 billion in 2024—validates this balanced approach. Institutional backing provides financial stability while founder control ensures strategic consistency.
For other entrepreneurs, DraftKings offers a roadmap for maintaining influence after going public. The dual-class structure, strategic advisor recruitment, and careful timing of public market entry all contributed to preserving founder vision while accessing capital markets.
As sports betting continues expanding across North America, DraftKings’ ownership model positions the company to move quickly on opportunities while satisfying institutional investor expectations. The founders bet on themselves—and won.
FAQs
Q1. Who are the founders of DraftKings?
DraftKings was founded by Jason Robins, Matthew Kalish, and Paul Liberman in 2012. They started the company as a bedroom startup and have since grown it into a major player in the sports betting industry.
Q2. How is DraftKings’ ownership structured?
DraftKings’ ownership is divided among institutional investors (71.16%), public companies and individual investors (26.63%), and company insiders (2.21%). However, CEO Jason Robins maintains about 90% of the voting power through a dual-class share structure.
Q3. When did DraftKings go public?
DraftKings went public in April 2020 through a merger with Diamond Eagle Acquisition Corp (a SPAC) and SBTech. This unconventional route allowed the company to simultaneously acquire SBTech and access public markets.
Q4. What role does Michael Jordan play in DraftKings?
Michael Jordan joined DraftKings in September 2020 as a special advisor to the board of directors. He provides strategic counsel on company strategy, product development, inclusion initiatives, and marketing activities.
Q5. How much revenue does DraftKings generate?
DraftKings reported $3.67 billion in revenue for 2023, with projections reaching $4.77 billion in 2024. The company has shown remarkable financial growth since its inception.