DraftKings launches horse racing feature in nine US states

Ziv Chen

28 April 2026 at 7:52am UTC-4

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DraftKings is expanding its horse racing offering by adding a feature that will enable wagering directly in its main sportsbook app.

The sportsbook will launch the feature in nine states ahead of the 2026 Kentucky Derby.

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After launching in Delaware, New Mexico, and Rhode Island, the feature will now be available in Florida, Louisiana, Montana, New Hampshire, Ohio, and Oregon.

The rollout builds on DraftKings’ existing standalone horse racing app, DK Horse, which will continue operating in some jurisdictions but is expected to be phased out as the integrated product expands.

DraftKings has also used the launch to add Derby-related promotions, including a US$1 million ‘King of the Track’ offer.

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Johnny Avello, Director of Race and Sports Operations at DraftKings, said, “DraftKings is committed to delivering the best fan experience across sports, and we’re proud to continue elevating that experience for horse racing with DraftKings Racing. DraftKings Racing is designed for speed and simplicity, offering a seamless and powerful way to engage with the sport’s biggest moments. By integrating horse racing directly into the DraftKings Sportsbook app, customers can wager across sports in one place with a shared wallet – creating a more connected and streamlined experience.”

This comes after DraftKings introduced DK Replay back in March, in time for the MLB season.

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The Backstory

Integrating the track into the sportsbook

DraftKings’ move to embed pari-mutuel horse wagering inside its main sportsbook app marks a shift from a niche, standalone product to a unified betting experience. The company has operated DK Horse as a separate app, but the strategy now favors a single wallet and simplified navigation across sports. The change is tailored to capture crossover interest as the spring racing calendar builds toward marquee events while streamlining product upkeep and marketing around one destination. An integrated hub can convert casual bettors who might not download a second app, deepen engagement through cross-sell and reduce churn when big racing days fade.

The rollout also signals a broader maturation pattern in U.S. online betting: operators are consolidating features to lift lifetime value, reduce friction and meet state-by-state rules within a common framework. DraftKings is layering in promotions tied to major races and leaning on speed and simplicity. As more states open channels for account-based wagering on horse racing, mainstream sportsbook placement could accelerate adoption beyond the core racing fan base that has long used dedicated platforms.

The pivot is happening as DraftKings seeks to stabilize growth across regulated markets that are both expanding and tightening. Folding racing into the core app can help balance acquisition costs by monetizing peak events while keeping users active between races with same wallet access to other markets.

Regulatory momentum, with scrutiny attached

Even as DraftKings leans into integration, regulatory exposure remains a defining risk. The company recently secured a key green light in the South, with the Arkansas Racing Commission granting it a license pending final approval of its local casino partnership. That decision set up a launch that adds coverage in a state where betting access had been limited and underscores the operator’s expansion into new jurisdictions. The approval followed assurances about product features and responsible gambling tools outlined with the license. Read more about the approval in the report on DraftKings being granted a license by the Arkansas Racing Commission.

Licensing wins have translated into operational milestones. Soon after, DraftKings and FanDuel went live in Arkansas with their sportsbook platforms, tying the market entry to partnerships with Southland Casino Hotel and Oaklawn Casino. The move illustrates how state regulators expect local collaboration and technical upgrades to meet compliance and user-experience requirements. It also shows how national brands face local pushback over revenue sharing and tax contribution, pressure that can shape marketing and product cadence.

At the same time, DraftKings faces litigation over consumer protection rules that could impact product design decisions, including how integrated features are surfaced. A class-action lawsuit filed in the Eastern District of Michigan alleges the company let users immediately raise deposit and wager limits without the 24-hour cooling-off period mandated in several states. The complaint spans jurisdictions including Colorado, Connecticut, Indiana, Iowa, Louisiana and New York, and centers on responsible gambling protocols that are under tighter review nationwide. As operators merge products and wallets, ensuring that limit-setting and timeouts persist across verticals will remain a focal point for regulators and plaintiffs’ attorneys.

FanDuel’s product cadence ups the ante

DraftKings’ integration arrives amid a steady drumbeat of new features from rivals. FanDuel has been pushing differentiated mechanics in its casino business, extending progressive jackpot options that can draw casual bettors and high-frequency players. In three states, FanDuel Casino expanded its jackpots to allow higher per-spin contributions for increased win chances, building on technology from its 2024 acquisition of BeyondPlay. The feature’s four-tier structure and hundreds of thousands of awards since launch create constant touchpoints that translate into daily engagement.

While jackpots and horse racing are distinct categories, the strategic through line is clear: deliver frequent, visible wins and simple on-ramps. DraftKings’ integrated racing aims to offer a similar cadence by anchoring around major race days while providing everyday markets within the same app. In Arkansas, both FanDuel and DraftKings activated sportsbooks at partner casinos, emphasizing faster product updates, live betting and navigation upgrades as competitive edges. The market-level competition pressures all players to compress release cycles, unify wallets and showcase responsible gambling guardrails.

The horse racing angle could give DraftKings a branding lift where FanDuel’s casino footprint is strong. But the inverse is also true: FanDuel’s rising casino attach rates in states where online casino is legal can counterbalance DraftKings’ racing push in markets that lack broader iGaming. Each operator is hedging with features that travel across different regulatory maps.

Policy experiments shape the racing lane

Statehouses are testing new frameworks that could widen distribution for online racing. In South Carolina, lawmakers debated a limited authorization for account wagering on live horse races. The measure would set up a new commission and explicitly exclude historical horse racing and other games of chance. As detailed in coverage of the hearing, the Equine Advancement Act would allow online horse racing bets while directing proceeds to the state’s equine industry. The bill reflects a pattern seen in other states: treat horse racing as a legacy, regulated product with its own guardrails rather than fold it into broader casino or sports betting authorizations.

If South Carolina or similar states open remote wagering for racing, the logic of integrating horse betting into mainstream sportsbook apps becomes stronger. Operators can benefit from built-in audiences and shared authentication, avoiding the costs and friction of standalone apps. For regulators, clearer oversight from a central commission, plus well-defined exclusions for non-racing games, can make adoption more palatable.

Still, the edge cases matter. Integrations must ensure that pari-mutuel systems, odds displays and race information meet racing-specific standards, while responsible gambling settings work across every vertical. Policymakers will watch whether integrated apps can honor self-exclusions and cooling periods consistently as users move between sports bets and racing pools.

What’s at stake as Derby season nears

Timing favors DraftKings. Embedding racing ahead of spring’s headline events can drive trial, while a shared wallet lowers barriers for sports bettors to place their first win, place or exacta. Marketing hooks like major-race promotions are easier to scale inside a single app. If users find a clear wagering flow and live race data, conversion could lift both racing handle and cross-sport activity.

The constraints are just as clear. Litigation on responsible gambling protocols will test whether app-wide settings hold under pressure when limits change or wallets are shared across verticals. Any state-level actions could force rapid product adjustments. Competitive reactions are likely, too, as FanDuel leans into frequent-win features and state partnerships to keep users active across its ecosystem.

For operators, integrating racing is a bet on simplicity and scale. For regulators, it is a test of whether consumer protections can keep pace with converging products. The runway to summer racing will show if the unified model can broaden the sport’s reach without tripping over compliance lines that are increasingly visible across the U.S. market.