DKNG Gross Margin Analysis

Gross Margin of 38.2% means DKNG keeps 38.2 cents from each dollar of revenue after covering the direct costs of delivering its fantasy sports and betting services.

The sector median is 46.4%, leaving DKNG 8.2 percentage points below the middle of its peer group. Its 37th percentile rank indicates that most sector peers report a higher gross margin. The year-over-year change is unavailable (N/A), and the quarter-over-quarter change is -9.7%, with historical values showing a decline from 42.3% to 38.2%. This combination—a below-median level plus a recent quarterly drop—implies higher investment risk as margin pressure may reduce future profitability. The metric directly supports the overall CAUTIOUS verdict because a falling gross margin often signals weaker pricing power or rising input costs.

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