DraftKings obtains additional $300M in financing
The number of participants in the daily fantasy sports space is not only growing, they’re bankrolling the leading sites with massive amounts of cash, betting that sports fans will spend more and more of their time and money on their sites.
On Monday, daily fantasy sports site DraftKings announced it has secured an additional $300 million in financing.
The financing round includes investments from Fox Sports, Major League Baseball, the NHL and Major League Soccer, as well as Legends Hospitality (owned by the New York Yankees and Dallas Cowboys) and The Madison Square Garden Company (owner of the Knicks and Rangers). The Kraft Group, which owns the New England Patriots and Revolution, invested in a prior round.
Both DraftKings and its main competitor, FanDuel, are now valued at more than $1 billion each. With the new money, the total investment in DraftKings is now $375 million. FanDuel has raised $363 million from the likes of global investment firm KKR and Google Capital, as well as media partners Time Warner, NBC Sports Ventures and Comcast Ventures. FanDuel also has some NFL investors, but it has not disclosed who they are.
In the past year alone, daily fantasy gaming has exploded. DraftKings, which gave out about $300 million in 2014, now says it will award more than $1 billion this year in daily prizes. FanDuel, which awarded $560 million in prizes, recently said it will dole out more than $2 billion this year.
Continue Reading Via: Darren Rovell on ESPN Chalk