3G Capital Exits DraftKings Stake Despite Strong Quarterly Performance
3G Capital Completely Sells Its DraftKings Shares Amid Portfolio Adjustments
Investment firm 3G Capital Partners has fully divested its shares in DraftKings, offloading 70,000 Class A stocks during the second quarter of 2025, according to their latest filing with the US Securities and Exchange Commission. This move concludes the firm’s gradual reduction of its stake in the online sports betting operator earlier in the year.
Context Around 3G Capital’s Decision and Other Portfolio Changes
The original acquisition of DraftKings shares averaged a price of $38.20 each, a value rarely reached between April and June, suggesting the sale likely incurred a loss. This sale is part of a broader portfolio realignment led by 3G Capital, co-founded by Brazilian billionaire Alexandre Behring. Alongside exiting DraftKings, the company also reduced holdings in Amazon and other businesses while increasing investments in PDD Holdings.
Despite 3G Capital’s exit, DraftKings continues to enjoy robust backing from other significant institutional investors. Hedge funds like Scopia Capital, Contour Asset Management, and Whale Rock Capital Management remain major shareholders.
DraftKings Records Impressive Financial Growth in Q2 2025
DraftKings reported a remarkable quarter for Q2 2025, generating record revenue of $1.51 billion—a 37% increase compared to the previous year. Adjusted EBITDA doubled to $301 million, achieving a 20% margin. The company credited its successful sportsbook operations, favorable sports outcomes, and disciplined cost management for driving this strong performance.
DraftKings’ Noteworthy Activities in July: Marketing Innovations and Legal Developments
In late July 2025, DraftKings captured public attention through inventive marketing alongside legal developments. The company organized a unique social media campaign on X (previously Twitter), inviting users to guess a number between 1 and 1,000,000 without offering any prize. This campaign gained substantial traction, attracting over 1.5 million views and 21,000 comments as followers engaged with incremental clues refining the guesses.
On the legal front, DraftKings achieved a victory in New York when a federal judge dismissed a proposed class-action lawsuit claiming the company’s $1,000 deposit bonus offer was deceptive. The court ruled that DraftKings had clearly communicated the terms of the promotion.
However, shortly afterward, DraftKings faced another class-action lawsuit in Pennsylvania accusing the company of misleading advertisements and unclear promotional language. The lawsuit highlighted that certain marketing phrases such as “risk-free bet” and “no-sweat first bet” did not adequately represent the financial risks, resulting in some players suffering losses exceeding $50,000 within months.
Additionally, DraftKings’ investment arm, Drive by DraftKings, declared plans to increase funding in the expanding real-money gaming sector. They anticipate the global gross gaming revenue could surpass $150 billion by 2030.
