Your deposited funds and winnings are held in a separate account owned by a DraftKings subsidiary, not by DraftKings Inc. itself, which means those funds are not available to DraftKings' creditors if the company faces financial difficulty.
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
The segregated account structure is a consumer protection mechanism that means your funds should be protected if DraftKings Inc. faces insolvency, because the funds are held by a legally separate entity whose assets are designated for player use.
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 →Your deposited funds and winnings are legally held separate from DraftKings Inc.'s general assets, which provides a layer of protection in the event of the company's financial difficulties, though users should note that the subsidiary structure and its protections are subject to applicable insolvency law.
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"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 and independent 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.Excerpt from DraftKings's Terms of Use
REGULATORY LANDSCAPE: Segregated player fund requirements are mandated by several state fantasy sports statutes and reflect a consumer protection standard adopted across the regulated daily fantasy sports industry.
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The segregated account structure is a consumer protection mechanism that means your funds should be protected if DraftKings Inc. faces insolvency, because the funds are held by a legally separate entity whose assets are designated for player use.
Your deposited funds and winnings are legally held separate from DraftKings Inc.'s general assets, which provides a layer of protection in the event of the company's financial difficulties, though users should note that the subsidiary structure and its protections are subject to applicable insolvency law.
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