DraftKings is on the cusp of acquiring online gambling and sports betting company SBTech, multiple sources have told Legal Sports Report.
Details and timing of a deal, if finalized, are unknown.
Such a deal would give DraftKings its own in-house platform provider as it rolls out online sports betting and casino games around the country. Currently, it works with European company Kambi for its sportsbook and online casino in New Jersey.
DraftKings would not confirm the deal, but did offer the following statement:
“DraftKings speaks to a variety of companies regarding various matters in the normal course of business, and it is our general policy not to discuss the specifics of any of those discussions.”
The number of states that will offer online sports betting is set to rise in the coming year. DraftKings is likely eyeing Iowa, Tennessee, Indiana and Illinois for possible launches in 2020.
DraftKings Sportsbook is already planning to launch an app in West Virginia, and is hoping to find an avenue to offer Pennsylvania online sports betting.
How much is a DraftKings – SBTech deal worth?
LSR believes the price DraftKings could be as low as $300 million or as high as $500 million, but has no direct knowledge of the terms.
SBTech is an international company with the ability to provide both an omnichannel sports betting platform and an online gaming platform. It also has consumer-facing sportsbooks.
Recent news at both DraftKings and SBTech
Just in the past week, there have been moves at the executive level for both companies.
DraftKings hired a new chief financial officer, Jason Park. He was previously an operating partner for Bain Capital Private Equity, focused on technology investments. He also spent eight years with McKinsey & Company. Details here.
SBTech also just hired a president of its US business — Melissa Riahei. She was the General Counsel to the Illinois Lottery and has also worked in the online gambling space previously.
It’s not clear if these moves are simply a coincidence or somehow have a tie-in to this deal.
https://www.google.com/amp/s/www.le...gs-buying-online-gambling-company-sbtech/amp/
Details and timing of a deal, if finalized, are unknown.
Such a deal would give DraftKings its own in-house platform provider as it rolls out online sports betting and casino games around the country. Currently, it works with European company Kambi for its sportsbook and online casino in New Jersey.
DraftKings would not confirm the deal, but did offer the following statement:
“DraftKings speaks to a variety of companies regarding various matters in the normal course of business, and it is our general policy not to discuss the specifics of any of those discussions.”
The number of states that will offer online sports betting is set to rise in the coming year. DraftKings is likely eyeing Iowa, Tennessee, Indiana and Illinois for possible launches in 2020.
DraftKings Sportsbook is already planning to launch an app in West Virginia, and is hoping to find an avenue to offer Pennsylvania online sports betting.
How much is a DraftKings – SBTech deal worth?
LSR believes the price DraftKings could be as low as $300 million or as high as $500 million, but has no direct knowledge of the terms.
SBTech is an international company with the ability to provide both an omnichannel sports betting platform and an online gaming platform. It also has consumer-facing sportsbooks.
Recent news at both DraftKings and SBTech
Just in the past week, there have been moves at the executive level for both companies.
DraftKings hired a new chief financial officer, Jason Park. He was previously an operating partner for Bain Capital Private Equity, focused on technology investments. He also spent eight years with McKinsey & Company. Details here.
SBTech also just hired a president of its US business — Melissa Riahei. She was the General Counsel to the Illinois Lottery and has also worked in the online gambling space previously.
It’s not clear if these moves are simply a coincidence or somehow have a tie-in to this deal.
https://www.google.com/amp/s/www.le...gs-buying-online-gambling-company-sbtech/amp/
