MASHINIi

DraftKings Inc..

DKNG.US | Gambling and betting activities

DraftKings Inc. is a digital sports entertainment and gaming company. It provides users with daily fantasy sports contests, sports betting, and iGaming opportunities. The company operates through various segments, including Business-to-Consumer (B2C), which focuses on online sports betting and iGami...Show More

Ethical Profile

Mixed.

DraftKings' ethical profile shows both challenges and mitigation. Reports suggest a data breach affected 67,995 customers, compromising personal and financial data, with $300,000 in funds restored. Multi-factor authentication was not universally available at the time. The company also faced a $200,000 SEC penalty for selective disclosure of non-public information. As an online gambling platform, DraftKings' core business carries inherent risks to mental and financial health. To counter this, it offers responsible gaming tools, seeing 13 million unique visits, contributes millions to problem gaming councils, and budgets over $10 million for responsible gaming advertising.

Value Scores

Better Health for All-50
-100100
Fair Money & Economic Opportunity0
-100100
Fair Pay & Worker Respect0
-100100
Fair Trade & Ethical Sourcing-10
-100100
Honest & Fair Business-10
-100100
Kind to Animals-10
-100100
No War, No Weapons0
-100100
Planet-Friendly Business0
-100100
Respect for Cultures & Communities0
-100100
Safe & Smart Tech-40
-100100
Zero Waste & Sustainable Products0
-100100

Better Health for All

-50

DraftKings' core business, which includes daily fantasy sports, sports betting, and iGaming, generates 100% of its revenue from activities with well-established negative health outcomes, specifically problem gambling and addiction. These products cause severe, widespread health damage with no redeeming health benefits, leading to a -100 score for both 'health_impact_core' and 'harmful_revenue_share'. The company's responsible gaming center outlines tools such as budget management, deposit limits, time limits, cool-off periods, and self-exclusion, and provides resources for problem gambling help.

1
This indicates comprehensive risk disclosures, aligning with a -60 for 'risk_transparency'. The negative health externalities, primarily problem gambling and addiction, are significant. While the company has remediation efforts through its responsible gaming tools and a collaboration with Kindbridge Behavioral Health to expand access to problem gambling treatment,
2
these efforts are partial given the scale of the issue, resulting in a -80 for 'health_externalities'. The provision of resources for problem gambling help
3
and the collaboration for treatment
4
represent some practical support for mental health needs, aligning with a -70 for 'mental_health_initiatives'. These same efforts constitute substantial addiction mitigation, leading to a -60 for 'addiction_mitigation'. KPIs such as 'safety_record', 'health_innovation_investment', 'healthcare_workforce_support', 'preventative_health_measures', 'healthcare_data_responsibility', 'global_health_crisis_response', 'pharma_patent_flexibility', 'nutrition_and_food_safety', 'healthcare_education', 'clinical_trial_ethics', and 'health_equity_programs' are omitted due to a lack of specific, quantitative evidence in the provided articles.

Fair Money & Economic Opportunity

0

DraftKings Inc. is a digital sports entertainment and gaming company, not a financial institution that offers lending, insurance, or deposit services. The 'Fair Money & Economic Opportunity' value and its associated KPIs are specifically designed to assess companies involved in lending, insuring, moving, or storing money, and their impact on financial inclusion and wealth building. As DraftKings' core business lies outside these financial services, its operations do not generate data relevant to the defined KPIs. The provided articles focus on the company's financial performance, user growth, market share, and responsible gaming initiatives, such as the 'My Stat Sheet' tool and contributions to problem gambling councils. None of the articles contain specific, concrete data points regarding underserved client share, pricing fairness, exploitative fee exposure, inclusion initiatives, data accessibility for financial products, fair lending compliance, wealth building outcomes, profit reinvestment in community finance, financial literacy initiatives, customer debt burden ratios, geographic inclusion for financial services, or product simplicity for financial products. Therefore, no KPIs can be scored based on the available evidence.

Fair Pay & Worker Respect

0

No evidence available to assess DraftKings Inc. on Fair Pay & Worker Respect.

Fair Trade & Ethical Sourcing

-10

DraftKings is a digital sports entertainment and gaming company, primarily dealing with digital services rather than physical commodities. Therefore, KPIs related to physical supply chains, such as fair trade certification, audit frequency, forced/child labor incidents, traceability, remediation speed, ethical clause coverage, and materials risk index, are not applicable. For Q4 2024, DraftKings reported that 1.5% of its total spend was directed to minority-owned (MBE), women-owned (WBE), and veteran-owned (VBE) suppliers.

1

Honest & Fair Business

-10

The company incurred a $200,000 penalty from the SEC for selective disclosure of material non-public information on social media.

1

Kind to Animals

-10

DraftKings is a digital sports entertainment and gaming company, and its core business model does not involve physical products, animal testing, animal-derived ingredients, or animal husbandry operations. Therefore, KPIs related to cruelty-free certification, alternative testing, humane certifications, ethical input substitution, supplier audits for welfare, cage-free sourcing, animal testing policy/volume, innovation in animal-free technologies, animal agriculture ethics, and animal-free R&D collaboration are not applicable to its operations. No evidence was found to score these KPIs positively or negatively, resulting in a score of 0 for each. For wildlife conservation, DraftKings funded the planting of 1 million trees by Earth Day 2022.

1
While this initiative is estimated to sequester over 780,000 metric tons of carbon, avoid over 5,000 tons of air pollution, and avoid over 750 million gallons of water runoff,
2
the articles do not provide measurable outcomes for species recovery or habitat restoration, which are specific requirements for positive scoring in this KPI. The funding amount is not provided as a percentage of revenue, and the reported benefits are environmental rather than direct biodiversity impact, leading to a negative score. For public policy engagement, DraftKings funded research on sports betting in the U.S., including studies on military veterans and problem gambling.
3
However, there is no evidence of engagement in animal welfare policy improvement or advocacy for higher standards, resulting in a negative score.

No War, No Weapons

0

The provided articles, including DraftKings' sustainability report and other communications, explicitly state that no data is available regarding arms contracts, dual-use technology, sales to embargoed regimes, peacebuilding investment, conflict divestment, or other metrics related to the 'No War, No Weapons' ethical value.

1
Therefore, no KPIs can be scored based on the available evidence.

Planet-Friendly Business

0

DraftKings committed to planting 1 million trees by Earth Day 2022, in collaboration with the Arbor Day Foundation.

1
This initiative is projected to sequester over 780,000 metric tons of carbon, avoid over 5,000 tons of air pollution, and avoid over 750 million gallons of water runoff.
2
The company utilizes cloud computing, which is estimated to reduce carbon emissions from consumed electricity by 88% compared to other data storage options, and its cloud computing power mix is 28% less carbon-intense than the global average.
3
A supplier of their data centers aims for 100% renewable energy by 2030.
4
DraftKings uses the TCFD framework for evaluating ESG risks and opportunities related to climate change.
5
However, no specific quantitative data on total Scope 1, 2, and 3 emissions, current renewable energy usage, water use, waste diversion, or other detailed environmental metrics is publicly available.
6
The company is not participating in any tracked reduction initiatives and has no reported emissions figures, reduction targets, or climate pledges.
7

Respect for Cultures & Communities

0

No specific, concrete evidence was found in the provided articles to assess DraftKings Inc. against any of the KPIs for 'Respect for Cultures & Communities'. The articles primarily discuss responsible gaming initiatives

1
or were unavailable.
2

Safe & Smart Tech

-40

DraftKings experienced a data breach affecting 67,995 customers, resulting in $300,000 in funds being restored.

1
The attack was a credential stuffing campaign where attackers used compromised credentials from other websites to access DraftKings accounts, change passwords, enable two-factor authentication (2FA) on different numbers, and withdraw funds.
2
DraftKings responded by resetting accounts, implementing fraud alerts, and restoring funds.
3
The company holds multiple certifications including PCI, HIPAA, SOC 2, GDPR, ISO 27001, FedRamp, and CSA Star Level 1.
4
DraftKings filed a breach notification with the Maine Attorney General's Office.
5
However, the incident highlights a weakness in authentication security, as attackers were able to change 2FA settings, indicating that 2FA was not sufficiently robust or widely enforced to prevent account takeover via credential stuffing.
6
The company's claim that its systems were not breached suggests the unauthorized data use stemmed from external credential compromise, but it still represents an incident of unauthorized access on its platform.
7

Zero Waste & Sustainable Products

0

No specific, quantifiable data is provided in the articles regarding waste diversion rates, product recyclability, packaging sustainability, recycled content, single-use plastic reduction, take-back programs, circular design principles, hazardous waste management, product durability, repairability, waste audit frequency, zero-waste certifications, waste disposal violations, material efficiency, packaging-to-product ratios, waste reduction targets, supplier waste requirements, or customer waste education. While DraftKings mentions energy-efficient offices and a partnership to plant 1 million trees, these initiatives are related to carbon reduction and environmental impact, not directly to waste reduction or sustainable products as defined by the rubric for this value.

1

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AI-generated analysis based on publicly available data. Not financial advice. Ratings are expressions of opinion derived from automated models and may contain inaccuracies. See our Risk Disclosure for full details.