Leading US sportsbook DraftKings has partnered with betting technology provider SBTech and will also become public next year.
As part of its latest developments, the sports betting company has also agreed a deal with Nasdaq-listed Diamond Eagle Acquisition Corporation.
Adapting to the growing US market
DraftKings was one of the early players in legal US sports betting and is now one of the industry’s most-recognisable names. There have been rumours that the sportsbook would partner with SBTech for much of the year, which have become true after all.
Jason Robins, DraftKings CEO, said: “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.”
As part of its partnership with SBTech, DraftKings will be able to try new things in the US. For example, important functions will no longer be provided through third-party sources. The company will keep a bigger chunk of its profits, too.
Robins also mentioned: “The combination of DraftKings’ leading and trusted brand, deep focus on customer experience and data science expertise and SBTech’s highly innovative and proven technology platform creates a vertically-integrated powerhouse.”
Although it had (in its own words) very little marketing spend, DraftKings held 14% of New Jersey’s iGaming market share in September. It sees this partnership as an opportunity to cross-sell with casino, rather than just focusing on sports betting.
According to the operator, its annual revenue could range from between $2.9 billion and $4.7 billion. This was announced in its investor presentation, after partnering with SBTech.
When commenting on the deal, Diamond Eagle Founding Investor Harry E. Sloan said: “DraftKings is already a premier online fantasy sports and betting platform. With the full integration of SBTech’s technology, and an innovative product expertise coupled with the right capitalisation, the company will be in a great position to continue its ambition expansion plans in the US.”