ARK Investment Management Reduces Stake in DraftKings

Hedge fund cuts holdings in sports betting company by 23% in Q3

Mar. 5, 2026 at 8:35am

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ARK Investment Management LLC, a prominent investment firm, reduced its stake in DraftKings Inc. (NASDAQ:DKNG) by 23.1% in the third quarter, according to a recent SEC filing. The firm now owns approximately 3.44 million shares of the sports betting company, worth $128.62 million.

Why it matters

ARK Investment Management is known for its focus on disruptive innovation, and its decision to reduce its DraftKings holdings could signal a shift in investor sentiment around the sports betting industry. The move comes as DraftKings continues to navigate a competitive landscape and regulatory changes in the US.

The details

According to the filing, ARK Investment Management sold 1,031,565 shares of DraftKings during the third quarter, reducing its total stake in the company to 3,438,916 shares. The firm now owns approximately 0.69% of DraftKings' outstanding shares.

  • ARK Investment Management reduced its DraftKings stake in the third quarter of 2026.

The players

ARK Investment Management LLC

A prominent investment firm known for its focus on disruptive innovation.

DraftKings Inc.

A leading digital sports entertainment and gaming company specializing in daily fantasy sports, sports betting, and iGaming products.

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What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident

The takeaway

The reduction in ARK Investment Management's DraftKings stake highlights the ongoing challenges and uncertainty facing the sports betting industry, as investors navigate a rapidly evolving regulatory landscape and competitive market dynamics.