This article walks through whether people can make money on the draftkings sports betting app using regulator data and DraftKings public filings. We focus on the economics that shape odds, how operator margins affect player returns, and practical steps you can use to test your own approach. The goal is to give sports fans and bettors a clear, evidence-based framework for deciding whether to pursue profit-seeking activity on commercial apps or to treat play as entertainment. No guarantees are offered; the analysis relies on public industry and regulator reporting and DraftKings disclosures.

Industry reports show a persistent operator hold in the high single digits to around 10 percent, creating a negative-EV baseline for most bettors.

DraftKings' 10-K confirms sportsbook margin, DFS fees, and iGaming net win are the companys primary revenue drivers.

Long-term profitability requires a measurable edge, rigorous testing, and disciplined bankroll management.

Understanding the draftkings sports betting app: how it works

What users see: markets, odds, and bet types

The draftkings sports betting app presents markets in a familiar layout: moneyline, point spread, totals (over/under), and a growing set of prop bets tied to player and game events. Odds are displayed as American, decimal, or fractional numbers; each format encodes the same underlying implied probability. For example, a moneyline of -150 implies a higher implied probability for the favorite than a +130 underdog, and those odds translate into the payout you would receive on a winning stake.

Understanding how those odds map to implied probability is essential because the numbers you see already embed an operator margin. That built-in margin, often called the vig, is how lines are constructed so the book can produce a consistent revenue stream over many bets. DraftKings lists its core revenue sources in its filings, including sportsbook margin, and that is the mechanism that shapes the odds customers face in everyday use DraftKings Form 10-K.

Platform mechanics: account flow, deposits, payouts, and fees

Close up of mobile screen showing odds converted to implied probability next to a notepad with bankroll calculations minimalist Funded Plays aesthetic draftkings sports betting app

On the app, account flow is straightforward: create an account, deposit funds, place bets, and receive net winnings after a successful wager. Payout timing and supported withdrawal methods vary by state and user verification status, but the basic steps are similar across regulated markets. The app may also show promotions and bonuses that change the apparent value of a bet for a limited time.

Be aware of fees and rules tied to certain product lines. DraftKings reports revenue from daily fantasy contest fees and iGaming activity in addition to sportsbook net win, which helps explain why the platform has multiple ways to monetize player activity beyond simple bet settlement DraftKings Form 10-K.

The math behind sportsbook profits and why most players lose

What 'hold' means and how it is measured

Operator hold, sometimes called the house margin, is the percentage of total stakes an operator retains on average after paying winners. It is calculated as net revenue divided by handle and represents the structural edge the book has over the pool of bettors. A positive hold means the operator wins money on aggregate, which implies a negative expected value for the average customer unless that customer has a persistent advantage.

Industry-level reporting shows the magnitude of that built-in edge. U.S. commercial sports betting set new revenue records in 2024 with a national hold in the high single digits to around 10 percent, a level that establishes a negative-EV baseline for most bettors American Gaming Association report. Additional published statistics also track national handle and revenue trends U.S. Sports Betting Statistics.

Industry-level results: national hold and revenue trends

That national hold is visible in multiple datasets and state reports, and it is not a short-term quirk. When operators consistently record a high-single-digit to near-10 percent hold, the math means many individual bets must lose to fund the reported net win and associated taxes. Outlier winning customers do exist, but the aggregate figures show those winners are rare relative to total bet volume Commercial Gaming Revenue Tracker. Recent revenue trackers also summarize handle and gross revenue trends US Sports Betting Revenue and Handle 2026.

Check how your ROI compares to market hold with FundedPlays Challenges

Compare your recent ROI to your state hold rate before scaling your staking. A short, honest benchmark can reveal whether your results are plausibly better than the operator margin or likely due to variance.

See FundedPlays Challenges

DraftKings' revenue model: what the company says in its filings

Key revenue lines in the 10-K

DraftKings' 2024 Form 10-K lists the companys primary revenue drivers as sportsbook margin, daily fantasy management fees, and iGaming net win. That mix explains why the firm reports revenue even when just a subset of customers win on any given day, because the operator retains a portion of handle and collects fees on other products DraftKings Form 10-K.

What that implies about player profitability and company incentives

Because revenue comes from a structural hold and ancillary fees, DraftKings as a business has no incentive to guarantee consistent player profits across the customer base. The companys financial disclosures make clear that its reported revenue is a function of operator margin and product fees rather than a transfer of systematic profit to ordinary customers DraftKings Form 10-K.

Do people make money on DraftKings over the long term?

Most customers face a negative expected value because operator hold is persistently positive; only those who can demonstrate a measurable edge and manage variance over a large sample are likely to be profitable.

Can you make money on the draftkings sports betting app? Edge, sample size, and variance

What 'having an edge' really means in practice

Making money over the long run means sustaining an expected return that exceeds the operator hold and any applicable fees. In plain terms, you need a repeatable method that produces positive expected ROI after subtracting the built-in margin the book charges. Without that sustained edge your long-run expectation is to lose money as operator hold compounds across hundreds of wagers.

Promotions and short-term streaks can temporarily offset the house edge, but they rarely change the underlying expected value over the sample sizes that matter. Industry reports show a stable, positive hold across markets, which implies promotions are often temporary noise against a negative-EV baseline American Gaming Association report.

How variance and sample size affect who wins in the long run

Variance determines how long a winning streak can last for a bettor who actually lacks an edge. Small samples magnify luck; larger samples reveal long-term tendencies. If a typical market holds about 8 to 10 percent, a player needs either a measurable edge that exceeds that rate or a realistic plan to exploit transient market inefficiencies at scale to expect positive outcomes over hundreds or thousands of bets.

That means anyone assessing a strategy must ask whether they can demonstrate superior ROI over a sufficiently large, independent sample rather than relying on a single-month profit or anecdotal success.

Decision framework: when trying to be profitable on DraftKings makes sense

Checklist to assess if your approach is viable

Use these decision criteria before you scale active staking: measurable edge, documented results across an appropriate sample, disciplined bankroll rules, and realistic ROI targets that exceed observed hold. If you cannot meet these conditions, treat activity as entertainment rather than a profit-seeking enterprise. See the Funded Plays blog overview for examples of evaluation writeups.

Benchmarking your target ROI against reported operator hold is essential. National and state-level holds give a reference point to judge whether your expected return is large enough to be meaningful after fees and variance Commercial Gaming Revenue Tracker.

Risk and bankroll rules to set before you start

Conservative bankroll rules reduce the chance of ruin as you test a method. Set a clear maximum drawdown, fix a consistent staking unit, and define stop-loss rules for experiments. Keep records so you can compute net ROI, strike rate, average odds, and variance before increasing stakes.

Minimalist 2D vector infographic showing short term variance with scattered dots and long term expected value convergence with large sample size draftkings sports betting app

Promotions and welcome offers can appear attractive, but they are not a substitute for a sustainable edge. Treat them as limited-value experiments and do not let temporary boosts influence long-term bankroll sizing or risk limits.

Common mistakes people make when using DraftKings and why they cost money

Mistakes tied to psychology and incentives

Several predictable behaviors erode returns: chasing losses after a bad run, inflating bet size following a win, and treating promotions as a change in your underlying edge. These habits amplify the house advantage embedded in the lines and increase the likelihood of larger, preventable drawdowns. State regulator dashboards consistently show that many customers lose over time, which aligns with these behavioral patterns affecting outcomes New York State Gaming Commission data.

Another common issue is misreading DFS fee structures and assuming single outlier wins represent sustainable ROI. DFS outlier prizes exist, but aggregated industry reporting shows that such wins are a small fraction of activity required to fund operator revenue Commercial Gaming Revenue Tracker.

Tactical errors that increase the house edge

Tactical leaks include poor bankroll sizing, overbetting on low-value promotions, misunderstanding vig on point spread bets, and repeatedly taking action at odds that offer negative expected value. These actions materially increase losses relative to the baseline negative-EV implied by operator hold, especially when repeated across months Nevada Gaming Control Board reports.

To correct these errors, stop chasing losses, standardize your stake size relative to bankroll, record every bet with the associated odds and result, and review realized ROI after a predefined sample before changing your approach.

Funded Plays Challenges

See FundedPlays Challenges

Practical examples and scenarios: short-term wins versus long-run outcomes

Example scenarios: a variance-fueled winning month versus a sustainable edge over 1,000 wagers

Scenario one: a bettor without a true edge has a winning month due to variance and a string of favorable outcomes. That month can feel like validation, but unless the bettor documents consistent positive ROI over a much larger sample, the result is more likely luck than a repeatable advantage. Industry revenue and hold data suggest many similar short-term winners are overwhelmed by losses in the long run when aggregated across bettors Commercial Gaming Revenue Tracker.

Scenario two: a disciplined player discovers a small measurable edge that, after accounting for hold and fees, yields a modest positive expected ROI per wager. To demonstrate that edge reliably, the player must test it across hundreds or thousands of independent wagers, track variance, and scale only after statistical confidence grows. That process is slow and requires strong record keeping.

DFS example: single-entry wins vs long-term ROI

In daily fantasy, single-entry winners sometimes hit large prizes, which can create an impression that DFS offers easy paydays. However, DraftKings and industry-level reporting indicate operator revenue comes from fees and net win across many entries, so outlier prizes are the exception, not the rule DraftKings Form 10-K.

Actionable takeaway: if you win a big prize, document how repeatable the method is rather than assuming the payout reflects a sustainable approach. Use the win as a data point to refine and stress-test your strategy on a broader sample before increasing exposure. See our evaluation guide on how evaluations work.

How to benchmark your performance against state hold and what to track

Where to find state dashboards and what the key fields mean

State regulator dashboards list handle, net revenue, and implied hold for licensed operators. For example, New York, Nevada, and Illinois publish periodic reports that let you compute a market-level hold and compare it to your realized ROI New York State Gaming Commission. You can also review state tax and revenue context for legalization state sports betting tax revenue.

Key fields to note are handle (total stakes), gross gaming revenue or net win, and the computed hold percentage. These allow you to understand the market reference for whether your approach is offsetting the operator advantage.

Metrics to record each week or month

Track these metrics in a simple spreadsheet: date, market or contest type, stake, odds, outcome, net profit/loss, running total bankroll, strike rate, and sample count. After a defined sample, compute net ROI and compare it to state or national hold to assess whether you have a plausible edge. Implementing a testing protocol helps avoid mistaking short-term luck for skill. Run blind tests where you record selections before viewing outcomes, keep a fixed staking rule during the test, and avoid changing size mid-sample unless predefined stop rules trigger Illinois Gaming Board reports.

simple weekly performance tracker for sports predictions

Date
Market Type
Stake
Odds
Outcome
Net P/L
Running Bankroll

include a column for notes on promotions

Conclusion: realistic expectations and next steps

Bottom-line summary

Industry and regulator data show a persistent positive operator hold that produces a negative-EV baseline for the average user; exceptions require a measurable, sustained edge that exceeds the operator margin and fees American Gaming Association report.

Practical next steps and resources

If you want to evaluate your own chances, benchmark your realized ROI against state dashboards, adopt disciplined bankroll rules, and test strategies over a predefined sample before scaling. Treat promotions and short-term wins as noise until you have reproducible results. For general context visit Funded Plays.

Responsible play matters: do not treat a temporary winning period as proof of a durable edge, and avoid risking more than you can afford to lose while testing methods.

Can I expect to win consistently on DraftKings?

No, the typical user faces a negative expected value because operators retain a consistent hold; only those with a measurable edge and disciplined testing can expect long-term profit.

Do promotions make the app profitable long term?

Promotions can improve short-term returns but rarely change the underlying expected value; treat them as temporary boosts, not proof of a sustainable edge.

How should I test whether my strategy can beat the sportsbook?

Run a documented test with fixed stakes, record every selection, compute net ROI after a large sample, and compare results to your state hold baseline before scaling.

Use state regulator dashboards and disciplined record keeping to benchmark your results. If you cannot demonstrate an edge after a predefined, substantial sample, consider limiting stakes and treating play as entertainment. Responsible play is essential. Do not let short-term wins lead to oversized risk, and rely on reproducible evidence before increasing exposure.