One Vision, Three Co-Founders: How Robins, Kalish and Liberman Built DraftKings Into a Betting Giant
DraftKings grew from a fantasy sports startup into a publicly traded betting and gaming company that reported $1.646 billion in Q1 2026 revenue. Founded by Jason Robins, Matt Kalish and Paul Liberman, the company’s rise mirrors the expansion of sports betting and iGaming in the United States since 2012.
What started as a daily fantasy sports platform evolved into a broad betting and gaming business spanning sportsbook, online casino, fantasy sports, media and digital lottery operations.
How Three Founders Saw an Opportunity in Fantasy Sports
The idea behind DraftKings was born while Robins, Kalish and Liberman were working together at VistaPrint. All three were passionate sports fans and believed traditional fantasy sports lacked instant excitement because users had to wait through an entire season for results.
The founders saw an opportunity to create a faster and more engaging format where users could build fantasy teams daily and compete for immediate cash prizes.
DraftKings was founded and launched in 2012 from Paul Liberman’s Watertown, Massachusetts home. The platform initially focused on daily fantasy baseball contests, and the concept quickly gained traction as the fantasy sports sector expanded across the United States.
DraftKings gained significant industry visibility in 2013 when Major League Baseball invested in the company. The investment strengthened the company’s credibility within the fantasy sports market.
The Advertising War That Turned DraftKings Into a National Brand
Between 2014 and 2015, DraftKings entered an aggressive growth phase built around acquisitions, partnerships and large-scale marketing campaigns.
The company acquired competitor DraftStreet to strengthen its user base and expand market share. At the same time, DraftKings signed major advertising and media agreements with ESPN and Fox Sports, significantly increasing the company’s national visibility during the fantasy sports boom.
During this period, DraftKings entered an intense rivalry with FanDuel as both companies competed aggressively for dominance in the growing fantasy sports sector.
The rivalry drove heavy advertising spending across television, digital platforms and sports broadcasts, helping daily fantasy sports become more widely recognized among mainstream sports audiences.
The customer acquisition strategy also helped DraftKings strengthen its brand visibility in the US market before sports betting legalization expanded nationwide.
How Regulatory Pressure Tested DraftKings’ Early Growth
As DraftKings expanded rapidly, the fantasy sports industry faced increasing legal scrutiny across multiple US states.
Several regulators questioned whether daily fantasy sports should be classified as gambling, leading to lawsuits, investigations and temporary restrictions between 2015 and 2017.
Legal pressure became a defining challenge in DraftKings’ early growth story. However, the company managed to navigate the uncertainty as multiple states later introduced legal frameworks allowing fantasy sports operators to continue operating.
In late 2016, DraftKings and FanDuel announced plans to merge in a deal that would have dramatically consolidated the fantasy sports market. However, the transaction was abandoned in 2017 following regulatory scrutiny and competition concerns.
Despite the setbacks, DraftKings continued expanding and preparing for broader opportunities within the regulated gambling market.
The 2018 Decision That Transformed DraftKings Into a Betting Giant
One of the most important turning points in DraftKings’ history arrived in 2018 when the US Supreme Court overturned PASPA, allowing individual states to legalize sports betting.
DraftKings moved quickly after the decision and launched sports betting operations in New Jersey later that year.
The launch transformed the company from a fantasy sports platform into a full-scale sports betting operator. Unlike many traditional gambling companies entering the market, DraftKings already had strong brand recognition, millions of users and years of digital customer acquisition experience.
The company’s early-mover advantage helped DraftKings expand rapidly as state-by-state sports betting legalization accelerated across the United States.
The PASPA repeal accelerated DraftKings’ transition from a fantasy sports operator into a large-scale betting and gaming company.
According to the company’s Q1 2026 results, sportsbook revenue increased 24% year over year to approximately $1.1 billion, while iGaming revenue reached $461.3 million, up 8.9% year over year.
The company also reported adjusted EBITDA of $167.9 million, compared to $24 million during the same period a year earlier, and posted quarterly net income of $21.1 million after reporting a net loss in Q1 2025.
How DraftKings Built a Multi-Billion-Dollar Betting Ecosystem
Following the legalization of sports betting, DraftKings rapidly expanded beyond fantasy sports into multiple gaming and entertainment verticals.
By Q1 2026, DraftKings reported quarterly revenue of $1.646 billion across sportsbook, iGaming and betting operations.
The company expanded into sportsbook operations, online casino gaming, fantasy sports contests, horse racing, sports media content and digital lottery services.
One of DraftKings’ most important strategic moves came in 2020 through its merger with SBTech, an international betting technology provider. The deal gave the company greater control over its sportsbook platform and technology infrastructure.
The same year, DraftKings became a publicly traded company on NASDAQ under the ticker symbol DKNG following its business combination with Diamond Eagle Acquisition Company and SBTech.
The SBTech transaction expanded DraftKings’ control over sportsbook technology, trading infrastructure and platform operations.
The Acquisitions That Accelerated DraftKings’ Expansion
DraftKings continued expanding through acquisitions designed to strengthen both its gaming and media operations.
In 2021, the company acquired sports betting media network VSiN to enhance its sports content and audience engagement capabilities.
In 2022, DraftKings acquired Golden Nugget Online Gaming to strengthen its online casino business and increase its presence within the iGaming sector.
The company further diversified in 2024 through the acquisition of Jackpocket, allowing DraftKings to enter the growing digital lottery market.
Today, DraftKings operates several products including DraftKings Sportsbook, DraftKings Casino, DraftKings DFS, DK Horse and Pick6, alongside media and content initiatives connected to VSiN and its broader sports content strategy.
Why DraftKings Still Operates Like a Founder-Led Company
Despite becoming a large public company, DraftKings continues to remain closely associated with its founding team.
Jason Robins remains the public face of the company as CEO and has led DraftKings through its transformation into a major betting operator in the United States.
Matt Kalish has played a major role in revenue growth and North American operations, while Paul Liberman continues to play a central role in operational strategy, technology and product development.
The continued involvement of the founders remains an important part of DraftKings’ long-term direction and corporate identity.
What Comes Next for DraftKings in an Increasingly Competitive Market
Although DraftKings has established itself as a major operator in the US betting market, the company continues facing strong competition from BetMGM, Caesars Entertainment and ESPN Bet.
The wider industry is also facing increasing pressure around profitability, customer acquisition costs, responsible gambling and regulatory compliance.
Looking ahead, DraftKings is expected to continue focusing on personalization technology, sportsbook innovation, online casino expansion, digital lottery growth and long-term profitability as competition across the US gambling market intensifies.
From a daily fantasy sports startup launched in Massachusetts to a publicly traded betting company generating billions in annual revenue, DraftKings’ evolution reflects the rapid expansion of regulated online betting in North America.
Source : DraftKings
