DraftKings and the Future of Fantasy Sports

Case Solution

Robert F. Higgins, Julia Kelley
Harvard Business School ()

Founded in 2012, DraftKings helped transform the fantasy sports landscape by popularizing Daily Fantasy Sports (DFS), or short-term fantasy sports tournaments that offered big cash prizes to winners. The company’s valuation topped $ 1 billion in 2015, but DraftKings soon came under scrutiny by government agencies to determine if its business model violated federal laws that prevent sports betting and online gambling. . Then, in May 2018, the US Supreme Court struck down the federal law that prohibited states from legalizing sports betting. Now that states could legalize sports betting, what should DraftKings next steps be?

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