DraftKings beats the odds to become first US publicly traded sportsbook
DraftKings is set to become the first publicly traded sportsbook in US history today when its stocks go public on the NASDAQ stock exchange. The little daily fantasy sports operation that once eschewed any notion that it was involved in sports betting is now poised to dominate the burgeoning US sports wagering market and make its founders very rich men.
The announcement regarding DraftKing’s entry into the world of publicly traded companies was accompanied by news that it had completed its business dealings with SBTech (Global) Limited (“SBTech”), an international provider of cutting-edge sports gaming technologies, and Diamond Eagle Acquisition Corp. (“Diamond Eagle”). This move opened the door for DraftKings to enter the marketplace as its own, independent entity. It also, “…creates the only vertically integrated pure-play sports betting and online gaming company based in the United States,” according to a press release announcing the reverse merger.
Jason Robins, co-founder and CEO of DraftKings expressed his enthusiasm for the day’s business dealings saying, “Today marks another milestone for DraftKings and the future of digital sports entertainment and gaming in America. By bringing together our leading consumer brand, data science expertise and industry-leading products with SBTech’s proven technology platform, we will accelerate our innovation, growth and scale. I am confident that the new DraftKings will progress our goal of offering the best, most innovative sports and gaming products to our customers.”
DraftKings enters the marketplace with a valuation of approximately $3 billion and will trade under the symbol DKNG. The company will keep its headquarters in Boston but will have branch offices throughout the country.