DraftKings Inc. vs MGM Resorts International: Strategic Comparison

This in-depth comparison examines DraftKings Inc. and MGM Resorts International across revenue, market value, business model, competitive positioning, and long-term growth strategy. Whether you are researching DraftKings Inc. on its own, evaluating MGM Resorts International, or weighing the two companies side by side, the breakdown below highlights where each company leads and where the gap between DraftKings Inc. and MGM Resorts International is widest.

On the headline numbers, annual revenue is $6.1B (FY2025) for DraftKings Inc. and $17.5B (FY2025) for MGM Resorts International, while their respective market capitalizations stand at $12.3B and $8.5B. Both DraftKings Inc. and MGM Resorts International are headquartered in United States. Their local markets and applicable rules may still differ.

DraftKings Inc.: DraftKings is one of the two largest legal sportsbooks in the US. It does not own teams or casinos; it runs the apps, odds, risk management and payments through which millions of customers bet on sports, play online casino games, enter fantasy contests, buy lottery tickets and, since late 2025, trade event contracts. The company is headquartered in Boston, Massachusetts.

MGM Resorts International: MGM Resorts International is one of the two largest casino operators on the Las Vegas Strip, alongside Caesars Entertainment. Its Strip portfolio includes Bellagio, ARIA, Vdara, MGM Grand, The Cosmopolitan, Mandalay Bay, Luxor, Excalibur, New York-New York, Park MGM and Delano. Outside Las Vegas it runs regional U.S. casinos, holds a majority stake in Hong Kong-listed MGM China, co-owns BetMGM with Entain, and owns European online operator LeoVegas. The company is headquartered in Paradise, Nevada. The premier gaming and entertainment resort empire was founded in Las Vegas, Nevada, in 1986 by billionaire Kirk Kerkorian, who transformed the Las Vegas Strip into a global capital of integrated megaresorts.

DraftKings Inc. and MGM Resorts International pursue distinct approaches to generating revenue, and understanding how each company operates is the foundation of any fair comparison between DraftKings Inc. and MGM Resorts International.

DraftKings Inc. business model: DraftKings earns most of its money from the house edge on bets and casino games. On its Sportsbook it prices odds so that, across many wagers, it keeps a share of the total amount bet (handle) as gross gaming revenue; multi-leg parlays carry a higher hold than single bets. Its iGaming (online casino) business, legal in only a handful of states, earns the statistical edge on slots and table games. Smaller revenue lines include DFS entry-fee rake, Jackpocket lottery courier fees, and, since December 2025, DraftKings Predictions, where customers trade CFTC-regulated event contracts. Promotions, state gaming taxes and marketing are the main costs that sit between handle and profit.

MGM Resorts International business model: MGM Resorts earns money by operating integrated resorts and collecting spending on casino gaming, hotel rooms, food and beverage, entertainment, retail and conventions. It reports four main segments: Las Vegas Strip Resorts (its largest profit pool), Regional Operations (properties such as Borgata, MGM National Harbor and MGM Grand Detroit), MGM China (MGM Macau and MGM Cotai), and MGM Digital (LeoVegas and international online gaming). Its 50/50 BetMGM joint venture with Entain is accounted for separately and began paying cash distributions to MGM in 2025. Because most buildings are leased under long-term triple-net leases, MGM pays fixed rent to landlords such as VICI Properties while keeping the operating cash flow.

The durability of a company's moat often decides long-term winners. Here is how the competitive advantages of DraftKings Inc. stack up against those of MGM Resorts International.

DraftKings Inc. competitive advantage: DraftKings' advantages are brand reach built during the DFS years, an in-house sportsbook technology stack inherited from SBTech, and a single account and wallet that cross-sells customers between Sportsbook, Casino, DFS, Jackpocket and Predictions. Together with FanDuel it holds the largest share of US online sports betting, which supports scale in marketing and data.

MGM Resorts International competitive advantage: MGM's advantage is concentration: about 37,000 rooms and suites on the Las Vegas Strip, roughly a quarter of the market, connected by one MGM Rewards loyalty program. That scale lets it fill rooms with conventions, arena events and residencies, cross-sell guests between luxury and value properties, and feed BetMGM with an existing customer database. Rival Caesars Entertainment holds a similar Strip footprint, so the edge is scale and brand mix rather than exclusivity.

Future prospects matter as much as current results. The growth strategies below explain how DraftKings Inc. and MGM Resorts International each plan to expand from here.

DraftKings Inc. growth strategy: Growth comes from new legal markets (Missouri launched in December 2025 and Alberta in 2026), higher-margin parlays and live betting, the Jackpocket and Predictions funnels in states without legal sports betting, and the 2026 Super App that puts every product in one app.

MGM Resorts International growth strategy: MGM is pairing capital discipline with selective growth. In 2026 it sold the operations of MGM Northfield Park in Ohio for $546 million in cash and withdrew from the downstate New York (Yonkers) commercial casino license process, while continuing to fund Osaka, Dubai, Las Vegas luxury reinvestment and MGM Digital. Management has pointed to BetMGM's goal of $500 million in EBITDA and to MGM Digital reaching profitability.

A closer look at the financial trajectory of DraftKings Inc. and MGM Resorts International rounds out the comparison.

DraftKings Inc.: DraftKings' revenue rose from $615 million in 2020 to $1.30 billion in 2021, $2.24 billion in 2022, $3.67 billion in 2023, $4.77 billion in 2024 and $6.05 billion in 2025. Net losses narrowed from about $1.5 billion in 2021 to $507 million in 2024, and 2025 ended with a net profit of about $3.7 million; Adjusted EBITDA more than tripled to about $620 million in 2025. In 2026, Q1 revenue rose 17% to $1.646 billion with $21.1 million of net income, but Q2 revenue fell 5% to $1.443 billion because of customer-friendly sports results and promotions for Sportsbook and Predictions. The company kept 2026 guidance of $6.5-$6.9 billion revenue and $700-$900 million Adjusted EBITDA, including $200-$300 million of incremental Predictions investment. DraftKings Inc. is a major American daily fantasy sports and sports betting company, holding a strong market valuation typically over $15 billion.

MGM Resorts International: MGM reported 2025 revenue of $17.54 billion, up 1.7% from $17.24 billion in 2024, while net income attributable to MGM fell to $206 million from $747 million. Fourth-quarter 2025 revenue was $4.6 billion with Consolidated Adjusted EBITDA of $635 million, and BetMGM distributed $135 million to MGM in that quarter. MGM repurchased 37.5 million shares in 2025, cutting its share count by about 48% since the start of 2021. In Q2 2026, revenue reached a record $4.5 billion (+1%), net income attributable to MGM was $292 million versus $49 million a year earlier, and Consolidated Adjusted EBITDA was $610 million versus $648 million. MGM Resorts International is a colossal American global hospitality and entertainment company, commanding a market valuation typically over $15 billion.