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 →Minor wording change from 'independent subsidiary' to 'subsidiary' and 'DraftKings, Inc.' to 'DraftKings Inc.' (removal of comma before 'Inc.').
View full 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 →"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
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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, …
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