Online fantasy sports and betting company DraftKings has confirmed that it is to become a listed company thanks to a joint acquisition by Diamond Eagle Acquisition Corp. and by SBTech, which is a provider of gaming-related technology.
The new company will become the first publicly listed sports betting and gaming operator in the US. The deal is expected to be completed during the first half of 2020.
As part of the deal, Diamond Eagle, which operates as a specialist acquisition company, is set to become known as DraftKings Inc. and will be reincorporated in the state of Nevada, the base of the longest established betting sector in the country.
According to reports, a number of institutional investment firms including Franklin Templeton and Capital Research and Management have undertaken to invest $304 million in the new company.
DraftKings, which began as a fantasy sports company, has been gaining market share ever since the May 2018 Supreme Court decision that struck down the 1992 PASPA Act, effectively clearing the way for any state in the US to legalise sports betting. At present, sports betting is regulated in 13 of the 50 states, and six more states are in the process of legalisation.
DraftKings has been one of the first companies to take advantage of the new sports betting markets and provides both online and mobile sports betting to customers in New Jersey, Indiana, West Virginia and Pennsylvania. It also has sports betting retail facilities in the states of Mississippi, Iowa, New York and New Jersey. It claims to have a share of the growing online betting market of 30%, according to reports in the US business press.
In addition, it continues to operate its fantasy sports gaming product in 43 US states and across eight other national markets, including the UK, Canada and Australia.