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The agreement reserves to DraftKings sole and absolute discretion the authority to withhold or revoke prizes, require additional releases as conditions of payout, deny participation in head-to-head contests, and invalidate contest results. Account termination may occur without prior notice.
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 authorizes DraftKings to withhold prizes, require release of claims as a condition of payment, and terminate accounts without advance notice, with decisions described as final and binding. The breadth of sole discretion authority over prize withholding and account standing creates material financial exposure for users.
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 →Under these terms, DraftKings may withhold prize payouts, require users to sign additional releases before receiving winnings, and suspend or terminate accounts without prior notice at its sole discretion. The agreement states that DraftKings decisions are final and binding in all respects.
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"DraftKings may, in its sole and absolute discretion, require an Authorized Account Holder to execute a separate release of claims similar to the one listed above in this Paragraph as a condition of being awarded any prize or receiving any payout. DraftKings reserves the right, in its sole and absolute discretion, to deny any contestant the ability to participate in head-to-head contests for any reason whatsoever. Further, DraftKings may, in its sole and absolute discretion, invalidate any head-to-head contest result for the purposes of preventing abusive and/or any unfair or potentially unlawful activity, or in the event that there is a risk of any such abusive, illegal, or unfair activity.Excerpt from DraftKings's Terms of Use
1. REGULATORY LANDSCAPE: Broad sole discretion authority over prize withholding and account termination in a consumer financial context engages state consumer protection statutes and daily fantasy sports licensing requirements. Several state licensing regimes impose procedural requirements on operators before withholding player funds or terminating accounts. The FTC Act prohibition on unfair or deceptive practices may be relevant to the exercise of unconstrained discretion over consumer funds. 2. GOVERNANCE EXPOSURE: High. The combination of unrestricted discretion over prize withholding, the requirement to execute additional releases as a condition of payment, and account termination without notice creates layered exposure in jurisdictions where consumer protection statutes constrain such provisions. The conditioning of prize payment on execution of a claim release is a provision that may attract regulatory scrutiny in multiple jurisdictions. 3. JURISDICTION FLAGS: States with active daily fantasy sports licensing frameworks may impose procedural requirements on operators exercising discretion over player accounts and funds. The Missouri-specific withdrawal provision in the document suggests awareness of state-specific obligations, indicating that similar jurisdiction-specific constraints may apply in other states. 4. CONTRACT AND VENDOR IMPLICATIONS: The sole discretion termination and prize withholding authority creates operational risk for users who rely on prize income or account continuity. The document does not establish a formal appeals process for prize withholding decisions, though a complaint mechanism is provided via email and physical mail for fund misallocation claims. 5. COMPLIANCE CONSIDERATIONS: Compliance teams should evaluate whether the sole discretion provisions are consistent with state daily fantasy sports licensing requirements in each jurisdiction of operation. The absence of a defined appeals process for prize withholding and account termination decisions may require evaluation against applicable consumer protection requirements.
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This provision authorizes DraftKings to withhold prizes, require release of claims as a condition of payment, and terminate accounts without advance notice, with decisions described as final and binding. The breadth of sole discretion authority over prize withholding and account standing creates material financial exposure for users.
Under these terms, DraftKings may withhold prize payouts, require users to sign additional releases before receiving winnings, and suspend or terminate accounts without prior notice at its sole discretion. The agreement states that DraftKings decisions are final and binding in all respects.
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