DraftKings to Go Public After Merger

DraftKings, a daily fantasy and sports betting site legal in most states, will soon be a public company. The betting site announced today that it has been acquired by Diamond Eagles Acquisition Corporation, a publicly-traded company alongside SBTech, a b-to-b tech company that works alongside sports betting sites.

As part of the new deal, Diamond Eagle will change its name to DraftKings, now a household name among sports fans. The transaction between DraftKings, SBTech and Diamond Eagle is expected to close by June of 2020 with an anticipated market value of $3.3 billion, according to DraftKings.

DraftKing CEO and founder Jason Robins will remain the leader of the new company.

“I look forward to building significantly upon our goals of continuing our state-by-state rollout and creating the most entertaining and engaging customer experiences for sports fans globally,” Robins said in a statement.

In previous NFL seasons, DraftKings made a name for itself by “carpet-bombing” the television landscape in order to grow brand awareness. Buoyed by the legalization of sports betting, it has become more selective in its advertising by taking its creative team in-house and launching local campaigns (based on the legality of sports betting).

Legal sports betting in the U.S. could be worth as much as $7.9 billion by 2024, according to Gambling Compliance, the industry’s trade group.

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