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DraftKings To Go Public After SBTech Merger: DFS & Sports Betting Giant Eyes iGaming Sector

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DraftKings, the United States’ sports betting giant and fantasy sports pioneer, announced their plans to go public in the first half of the new year after the recent merger with acquisition group Diamond Eagle.

Monday’s statement also confirmed the long speculated partnership between the sports betting platform and betting technology group SBTech.

Boasting a $3.3 billion market cap, the partnership sees upwards of $300 million in fresh financial funding from Capital Research and Management, Franklin Templeton, and Wellington Management.

Investors can already find Diamond Eagle on Nasdaq, but the acqusition company will ultimately update its market listing to DraftKings once all of the red tape has been cleared.

A Match Made In Heaven

As the regulated sports betting market continues to expand across the United States, DraftKings has already emerged as one of the frontrunners when it comes to online and mobile wagering options.

Pairing with SBTech gives them access to their risk management tools which will allow them to offer a wider variety of betting odds and encourage potential bettors to sign on with their more innovative product.

While DraftKings has always targeted the United States market, SBTech is already firmly established in the European gambling arena which allows this new supergroup to diversify their revenues and support each other through the ebbs and flows of the two jurisdictions. This helps to lower overall risks and permits both to take more risks when it comes to creating new offerings to their consumers.

The SBTech addition bring along over 50 existing partners that operate in more than two dozen jurisdictions.

This partnership also allows DraftKings to become more self supporting, no longer having to rely on gaming tech giant Kambi to develop and update their platform.

Kambi had recently expanded its partnership with DraftKings, and this weeks news dealt them a massive blow, with their stock tumbling more than 30% with the release of the news.

43 states and eight foreign markets currently allow citizens to participate in online fantasy sports contests, and DraftKings boasts an impressive 60% of the market share. When it comes to their sports betting platform, the group only made up 38% of New Jersey’s sports betting market, second behind FanDuel’s 40% per financial reports.

The obvious goal would be to overtake the competition in the sports betting department, but thanks to the increased financial backing, DraftKings also appears to be eying a larger presence in the iGaming sector. Currently making up a mere 14% of New Jersey’s iGaming revenue, the improved technology and backing will help the group quickly advance and establish themselves as the premiere online gambling platform for North American customers.

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