DraftKings Inc. DKNG

Competitive advantage analysis · consumer-cyclical

Corporate Default
Overall moat score
43/100
Developing

About DraftKings Inc.

DraftKings Inc. operates as a digital sports entertainment and gaming company in the United States and internationally. The company offers online and retail sports betting, daily fantasy sports, digital lottery couriers, prediction markets, and other products, as well as retails sportsbooks. It also provides iGaming, or online casino products, which includes blackjack, roulette, baccarat and slot machines. In addition, the … Full DKNG analysis →

Competitive advantage assessment

Key strengths

  • Operating Leverage in Effect Operating leverage is evident (score 1.00), with margins expanding over time.

Key risks

  • Commodity Pressure / Weak Differentiation Gross margin at 21.4th percentile with high volatility suggests weak pricing power or commoditized products.
  • ROIC Below WACC or Peers ROIC at 38.5th percentile suggests inefficient capital deployment.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Pricing Power

Weak
15

Where DKNG ranks in Gambling

DraftKings Inc. ranks #11 of 20 scored companies in Gambling by moat score — the top 55%. The widest moat in the group is Super Group (SGHC) Limited (SGHC) at 73/100.

Moat scores for companies ranked near DKNG in Gambling
# Company Moat score Rating
7 Canterbury Park Holding Corpora CPHC 58/100 Moderate
8 Codere Online Luxembourg, S.A. CDRO 56/100 Moderate
9 Flutter Entertainment plc FLUT 54/100 Moderate
10 Bragg Gaming Group Inc. BRAG 52/100 Moderate
11 DraftKings Inc. DKNG 43/100 Developing
12 Gambling.com Group Limited GAMB 39/100 Developing
13 GAN Limited GAN 31/100 Developing
14 High Roller Technologies, Inc. ROLR 16/100 Weak
15 SharpLink Gaming, Inc. SBET 15/100 Weak

See every General Corporate company ranked by moat score →

How DKNG scores on the Corporate Default defenses

Pricing Power

Score 15 · 20% of the moat score

Pricing power is the ability to raise prices without losing volume.

Cost Advantage

Score 59 · 15% of the moat score

A cost advantage means delivering the same product for structurally less — better purchasing, denser distribution, a more automated process.

Customer Stickiness

Score 52 · 15% of the moat score

Stickiness is what makes revenue repeat without being re-won every year.

Capital Efficiency

Score 38 · 18% of the moat score

Capital efficiency asks what the company earns on the money tied up in the business.

Resilience

Score 40 · 17% of the moat score

Resilience is the capacity to get through a bad year on its own terms — enough liquidity, enough interest cover, and enough cash generation to avoid a rescue financing or a forced sale.

Scale & Market Position

Score 72 · 15% of the moat score

Scale matters only when it converts into economics.

How each Corporate Default defense is measured, in full →

Understanding DKNG's moat

What is DraftKings Inc.'s moat score?

DraftKings Inc. (DKNG) scores 43 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as developing. It ranks #11 of 20 scored companies in Gambling, the top 55%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 19 companies in Gambling. Its strongest defense is Scale & Market Position (72/100) and its weakest is Pricing Power (15/100).

How does DraftKings Inc. compare with other Gambling companies?

DraftKings Inc. ranks #11 of 20 scored companies in Gambling by moat score. The widest moat in Gambling is Super Group (SGHC) Limited (SGHC) at 73/100. The companies ranked closest are Bragg Gaming Group Inc. (BRAG) at 52 just above it and Gambling.com Group Limited (GAMB) at 39 just below it.

How is the moat score calculated?

Each company is scored with an industry-specific template — Corporate Default in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 19 companies in Gambling. The defenses are then weighted to produce the overall score out of 100.

Why is DraftKings Inc. scored with the Corporate Default template?

Most public companies sell a product or a service at a margin, so the moat question is whether that margin survives contact with competitors. The Corporate template scores the six defenses that show up in a general operating company's financial signature: whether it can hold price, produce more cheaply than rivals, keep its customers, earn a return above its cost of capital, withstand a downturn, and turn size into economics.

Which competitive defenses are measured for DraftKings Inc.?

The Corporate Default template measures 6 defenses, and DKNG scores: Pricing Power (15), Cost Advantage (59), Customer Stickiness (52), Capital Efficiency (38), Resilience (40), Scale & Market Position (72). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.

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