SCHEDULE: Fidelity discloses 5.3% stake in DraftKings

FMR LLC and Abigail P. Johnson reported beneficial ownership of 26.59 million DraftKings Class A shares, equating to 5.3% as of December 31, 2025.

Summary

• FMR LLC (Fidelity) reported beneficial ownership of 26,590,348.85 DraftKings Class A shares, representing 5.3% of the class as of December 31, 2025.
• FMR LLC has sole voting power over 24,862,413.516 shares and sole dispositive power over 26,590,348.85 shares; there is no shared voting or dispositive power.
• Abigail P. Johnson reported beneficial ownership (through FMR LLC and affiliates) of 26,590,348.85 shares (5.3%) with sole dispositive power and no voting or shared powers listed.
• Ownership is held in the ordinary course of business and not for the purpose of changing or influencing control of DraftKings.
• One or more other persons have the right to receive dividends or proceeds from the sale of these securities; no such person has an interest exceeding 5% of the class.
• Relevant FMR-related entities include FIAM LLC, Fidelity Diversifying Solutions LLC, Fidelity Institutional Asset Management Trust Company, Fidelity Management & Research Company LLC, Fidelity Management Trust Company, and Strategic Advisers LLC.
• Members of the Johnson family, including Abigail P. Johnson, collectively hold 49% of the Series B voting power of FMR LLC under a voting agreement, constituting a controlling group with respect to FMR LLC.
• Joint filing agreement executed on February 4, 2026; the certification affirms ordinary-course investment intent.

Sentiment

Score: 6

Explanation: StockSavvy.ai views this as modestly positive given the size of the institutional stake and clear ordinary-course intent, which supports liquidity and sponsorship without signaling control-related overhang.

Positives

• Material institutional position: 26.59 million shares (5.3% of Class A) indicates strong institutional sponsorship.
• Clear disclosure of control intent: holdings are in the ordinary course and not aimed at influencing control.
• No shared voting or dispositive power, suggesting centralized decision-making for the stake within FMR LLC.

Negatives

• Sole voting power (24.86 million) is lower than total beneficially owned shares (26.59 million), indicating some positions lack voting rights or are not voted by FMR LLC.
• Ownership is on behalf of clients/other persons who may receive dividends or sale proceeds, which can lead to future portfolio rebalancing or redemptions-driven selling.
• No indication of long-term holding commitment or engagement with issuer strategy.

Future Outlook

No forward-looking statements or guidance provided.

Management Comments

• Holdings were acquired and are held in the ordinary course of business and not for the purpose of changing or influencing control of DraftKings.
• No participation in any transactions aimed at influencing control, other than activities solely in connection with a nomination under Rule 14a-11.

Industry Context

StockSavvy.ai notes that continued high institutional ownership in U.S. online gaming and sports betting reflects the sector’s maturation; large asset managers (active and passive) commonly hold 5%+ stakes in leading operators, and a disclosed 5.3% position by Fidelity aligns with this broader trend of mainstream institutional sponsorship.

Comparison to Industry Standards

• A >5% institutional stake is in line with typical top-10 shareholder positions for large-cap U.S. gaming and sports betting companies (e.g., Caesars Entertainment, MGM Resorts), where major asset managers often hold single-digit percentage stakes.
• Centralized dispositive power without shared voting is common for multi-entity asset managers, comparable to structures used by peers like Vanguard and BlackRock when reporting across affiliated advisers and trusts.
• The ordinary-course, non-control certification is standard for passive or quasi-passive institutional holders filing on Schedule 13G versus activist or control-seeking filers on Schedule 13D.

Stakeholder Impact

• Shareholders: Increased institutional sponsorship from Fidelity may support trading liquidity and investor confidence.
• Issuer management: No activist intent signaled, reducing the likelihood of governance pressure from this holder.
• Clients/beneficiaries of Fidelity-managed accounts: Maintain economic interest in dividends and sale proceeds tied to the reported shares.
• Market liquidity: Potential for future block trades exists given the stake size, depending on client flows and portfolio rebalancing.

Key Dates

Recommendation

A new or updated 5.3% institutional holding by Fidelity is supportive but not a fundamental change to DraftKings’ outlook. It improves sponsorship and liquidity but does not provide incremental financial results or strategic updates; thus, a neutral hold is appropriate based solely on this filing.

Keywords

Schedule 13G, DraftKings, FMR LLC, Fidelity, Abigail P. Johnson, Institutional ownership, 5% holder, Class A common stock, Beneficial ownership, CUSIP 26142V105, Voting power, Dispositive power