Home > Finance > DraftKings seeks $1bn in new funding round

DraftKings seeks $1bn in new funding round

| By Aaron Noy
Nasdaq-listed sports betting giant DraftKings is looking to raise $1.03bn (£795.5m/€876.5m) through a new public offering of common stock.
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The US group – formed by the combination of operator DraftKings and betting and gaming technology provider SBTech earlier this year – intends to use the net proceeds it receives from the offering for general corporate purposes.

DraftKings said the underwritten public offering, which commences today (5 October), consists of 16m shares, to be issued by the Boston-headquartered operator, and 16m shares that will be made available by certain selling stockholders, including SBTech founder Shalom Mekenzie.

DraftKings and the selling stockholders intend to grant the underwriters a 30-day option to purchase up to an additional 4.8m shares of Class A common stock, though the operator will not receive any proceeds from the selling shareholders’ common stock. 

The group said the offering is subject to market and other conditions, and there can be no assurance as to whether or when the offering may be completed. Credit Suisse Securities and Goldman Sachs are acting as joint book-running managers and as representatives of the underwriters for the offering.

Read the full story on iGB North America.

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