Get the weekly research letter
Companies change their terms quietly. We read every version and catch what actually changed. One email a week on the changes that matter and what they mean. No account.
The agreement states that player deposits and winnings are held in a segregated bank account controlled by DK Player Reserve LLC, a separate DraftKings subsidiary, and asserts that these funds are not available to DraftKings Inc. creditors. The terms prohibit commingling of DraftKings Inc. funds with the segregated player funds.
This analysis describes what DraftKings's agreement states, permits, or reserves. It does not constitute a legal determination about enforceability. Regulatory applicability and practical outcomes may vary by jurisdiction, enforcement context, and individual circumstances. Read our methodology
This provision establishes the structural mechanism for player fund protection, asserting that user deposits and winnings are held in a legally distinct entity and are insulated from DraftKings Inc. creditor claims. The operational and legal effectiveness of this structure depends on applicable state regulatory requirements and the corporate separateness of DK Player Reserve LLC.
Interpretive note: The enforceability of the creditor insulation assertion depends on the actual corporate separateness maintained by DK Player Reserve LLC and applicable state insolvency law, which cannot be assessed from document language alone.
The updated terms establish that daily fantasy terms apply only to fantasy sports contests and explicitly exclude other DraftKings services like sportsbook, igaming, and horse racing. Illinois residents now face a minimum age requirement of 21 to open accounts and participate in contests, while the prior exception allowing 18-year-olds in Virginia who opened accounts before July 1, 2025 no longer applies. The terms now prohibit use of VPNs or attempts to disguise physical location while using the platform, treating such use as a terms violation. Additionally, DraftKings has reserved authority to transfer account funds across its affiliated platforms to meet regulatory or operational requirements without requiring advance notice for each transfer.
View change record →The agreement states that player funds are held in a segregated account by a separate subsidiary and are not available to DraftKings Inc. creditors, which is intended to protect player funds in the event of financial distress at the parent company. Users who believe funds have been misallocated may submit complaints to support@draftkings.com or in writing to 222 Berkeley Street, Boston, Massachusetts 02116.
Cross-platform context
See how other platforms handle DK Player Reserve LLC Segregated Account Structure and similar clauses.
Compare across platforms →Monitoring
DraftKings has changed this document before.
Receive same-day alerts, structured change summaries, and monitoring for up to 20 platforms.
"Customer deposits and player winnings after contests are finished are held in a separate, segregated bank account (the "Segregated Account") held by DK Player Reserve LLC, a legally separate subsidiary of DraftKings Inc. Withdrawals which will be made from this Segregated Account, and checks issued from the Segregated Account, may bear the names of DK Player Reserve LLC. Vendors, players, and creditors shall be aware that the funds in the Segregated Account are the property of DK Player Reserve LLC and do not belong to DraftKings Inc., and are not available to creditors of DraftKings Inc., except for players whose funds are held in such account. DraftKings Inc. and DK Player Reserve LLC are prohibited from comingling funds held by DraftKings Inc. and funds belonging to DK Player Reserve LLC held in the Segregated Account.Excerpt from DraftKings's Terms of Use
1. REGULATORY LANDSCAPE: The segregated account structure engages state daily fantasy sports licensing requirements in jurisdictions that mandate player fund protection mechanisms. Several states with active daily fantasy sports regulation require operators to maintain player funds in segregated accounts or demonstrate financial stability. The CFPB may have jurisdiction over fund handling practices depending on how the platform characterizes its payment processing activities. 2. GOVERNANCE EXPOSURE: Medium. The document asserts corporate separateness between DraftKings Inc. and DK Player Reserve LLC as the basis for creditor protection, but the enforceability of this structure in an insolvency scenario depends on the actual corporate separateness maintained in practice, applicable state law, and whether the structure satisfies state licensing requirements. Compliance teams should verify the legal standing of DK Player Reserve LLC in each licensed jurisdiction. 3. JURISDICTION FLAGS: States with explicit fantasy sports licensing frameworks, including New York, New Jersey, Colorado, and Tennessee, may have specific requirements regarding the form and verification of player fund protection. The document's assertion of creditor insulation may require evaluation under each state's relevant statutes. 4. CONTRACT AND VENDOR IMPLICATIONS: The segregated account structure is relevant to any institutional arrangement involving player funds, sponsorships, or prize funding. The prohibition on commingling is asserted in the terms but would require operational verification through audit or regulatory examination to confirm compliance. 5. COMPLIANCE CONSIDERATIONS: Legal teams should confirm that DK Player Reserve LLC maintains the required corporate separateness and that the segregated account structure is consistent with applicable state licensing requirements in all jurisdictions where DraftKings operates. The ten-day complaint response commitment and withdrawal timeline provisions should be mapped against state-specific regulatory requirements.
This provision establishes the structural mechanism for player fund protection, asserting that user deposits and winnings are held in a legally distinct entity and are insulated from DraftKings Inc. creditor claims. The operational and legal effectiveness of this structure depends on applicable state regulatory requirements and the corporate separateness of DK Player Reserve LLC.
The agreement states that player funds are held in a segregated account by a separate subsidiary and are not available to DraftKings Inc. creditors, which is intended to protect player funds in the event of financial distress at the parent company. Users who believe funds have been misallocated may submit complaints to support@draftkings.com or in writing to 222 Berkeley Street, …
No. ConductAtlas is an independent monitoring service. We are not affiliated with, endorsed by, or sponsored by DraftKings.