DraftKings is a platform where you pick real athletes for imaginary teams and compete against other people for money

DraftKings is a website and mobile app that lets you create fantasy sports lineups — teams made up of real professional athletes — and compete in contests against other users. You pick players from upcoming games, pay an entry fee (usually between $1 and several hundred dollars), and your team earns points based on how those real players perform in actual games that day or week. If your team scores the most points in your contest, you win a cash prize. If it scores poorly, you lose your entry fee.

The company operates in most U.S. states and some countries outside the U.S., though the rules and what sports are available depend on where you live. DraftKings offers fantasy contests for NFL football, NBA basketball, MLB baseball, NHL hockey, golf, soccer, and other sports. Most contests are "daily fantasy" — meaning the games happen within 24 hours — rather than season-long leagues.

Key Takeaways

  • You pick real athletes to form a fantasy team, pay an entry fee, and win money if your team scores the most points based on actual game performance.
  • DraftKings sets a salary cap for each contest, so you cannot just pick all the best players — you have to balance star players with cheaper ones to stay under the limit.
  • Most contests on DraftKings are "daily fantasy," meaning they start and finish within one day, unlike season-long fantasy leagues.
  • DraftKings is legal in most U.S. states but banned or restricted in some, and the specific sports and contest types available vary by location.

How the salary cap works

Every DraftKings contest has a salary cap — a total amount of imaginary money you can spend on your entire roster. For example, in an NFL contest, your cap might be $50,000. Each player has a salary assigned by DraftKings based on how well they are expected to perform. A star quarterback might cost $9,000, while a backup running back might cost $4,500.

You have to build a full roster (usually 6 to 8 players depending on the sport) while staying at or under the salary cap. This forces you to make trade-offs: you might pick one or two expensive star players and fill the rest of your roster with cheaper, less-proven athletes. The strategy is finding undervalued players — people DraftKings priced low but who you think will score a lot of points anyway.

What happens after you enter a contest

Once you submit your lineup, you cannot change it. You then wait for the games to happen. As real games are played, your players earn points based on their actual statistics — a quarterback gets points for passing yards and touchdowns, a basketball player gets points for made shots and rebounds, and so on. DraftKings tracks these points in real time, and you can watch your score update as games progress.

When all the games in your contest are finished, DraftKings ranks all the lineups by total points. The top finishers win cash prizes. The prize pool and how many people win depend on the contest type — some contests have thousands of entrants and only the top 10 percent win anything, while others are smaller and more people cash.

Different contest types

DraftKings offers several ways to compete. In a cash game, the top 50 percent of entrants win money (usually double their entry fee), and the bottom 50 percent lose. These are lower-risk because you have a decent chance of cashing. In a tournament, only the top finishers win, but the prizes are larger — you might win $1,000 or more if you finish first in a big tournament, but most entrants win nothing.

Head-to-head contests pit you against just one other person, and the winner takes all. Multiplier contests are somewhere in between — a set number of people win a fixed prize. DraftKings also runs special contests like "Best Ball," where you pick players and DraftKings automatically uses their best performances, removing some of the daily lineup-building work.

Where DraftKings is legal

DraftKings operates legally in most U.S. states, but not all. The company is banned or heavily restricted in a handful of states, including Arizona, Iowa, Louisiana, Montana, Nevada, and a few others. The legal status can change, and some states have specific rules about which sports are allowed or how much you can spend per contest.

Outside the U.S., DraftKings operates in Canada, the United Kingdom, Germany, and some other countries, though the available sports and contest types vary. Before you use DraftKings, check whether it is legal in your state and what restrictions explore. The DraftKings website shows which states are available when you try to sign up.

The difference between DraftKings and traditional fantasy leagues

Traditional fantasy leagues (like ESPN fantasy football) run for an entire season — you draft players once in September and manage the same team through December. You compete against the same group of people all season, and the winner is crowned at the end. These leagues are usually free or cost a small one-time fee.

DraftKings is different because contests are daily or weekly, not seasonal. You build a new lineup for each contest, and you compete against a different set of people each time. You can enter as many contests as you want in a single day. This means you can win or lose money much faster, and there is no long-term commitment to a league.

Money, risk, and what to know before you start

DraftKings is a form of gambling — you risk money with the possibility of winning more, but you can also lose what you put in. The company makes money by taking a cut of every contest's entry fees (called "rake"), which means the total amount paid out to winners is always less than the total amount paid in by all entrants. This is similar to how a casino works.

Most people who play DraftKings lose money over time, especially beginners. The people who consistently win are usually experienced players who spend significant time studying statistics, injury reports, and game matchups. If you decide to play, treat it as entertainment with a cost, not as a way to make money. Set a budget you can afford to lose, and stick to it.

Frequently Asked Questions

Is DraftKings the same as sports betting?

No. Sports betting is wagering on the outcome of a game (like betting that the Chiefs will beat the Bills). DraftKings is fantasy sports — you pick individual players and earn points based on their performance, not on who wins the game. The two are legally different in most places, though both involve money and risk.

Can I play DraftKings on my phone?

Yes. DraftKings has apps for iPhone and Android that work the same way as the website. You can read the app, create an account, deposit money, and enter contests entirely from your phone.

How much money do I need to start?

You can enter contests for as little as $1, so you can start with a small deposit. However, most people deposit at least $20 to $50 to have enough for multiple contests. There is no minimum, but smaller entry fees mean smaller potential winnings.

What happens if I win money on DraftKings?

Winnings are added to your DraftKings account balance. You can use that money to enter more contests, or you can withdraw it to your bank account. DraftKings will send you a tax form (1099) if your winnings exceed a certain threshold, and you are responsible for reporting those winnings as income.

Is DraftKings rigged or unfair?

DraftKings is regulated and audited in the states where it operates, so the contests are not rigged in the sense that results are predetermined. However, experienced players with better information and strategy have a significant advantage over casual players, similar to poker. The house also takes a cut of every contest, which means the odds favor the company over players as a whole.