Highlighted as a ‘developing news story’, LegalSportsReport.com (LSR) has reported that DraftKings is on the ‘cusp’ of signing a new acquisition deal with online gambling and sports betting company SBTech.
The intricacies of the deal, which would ultimately ripple throughout the sports betting industry, remain unknown.
The deal would provide DraftKings with its own in-house platform provider, as it seeks to strengthen its position across the country. LSR has reported that multiple sources have confirmed negotiations between the two parties, but as yet no information has been made available with regards to deal timings or provisions.
DraftKings would not confirm the deal, but did offer the following statement: “DraftKings speaks to a variety of companies regarding various matters in the normal course of business, and it is our general policy not to discuss the specifics of any of those discussions.”
A takeover of SBTech would offer DraftKings the chance to avoid costly sports betting product development, securing an ‘in-house platform’ through M&A. LSR has estimated that the price DraftKings could propose could range between $300-500m in a move to completely acquire SBTech.
In turn, SBTech is considered one of the go-to omni-channel betting technology providers, with its platform provisions servicing European sportsbooks including ComeOn, Czech SAZKA, Adjarabet and NetBet.
Since PASPA’s repeal, SBTech has been one of the most active European technology incumbents within the liberalised US market, securing multi-year sportsbook platform agreements with Pala Interactive, Churchill Downs and Golden Nugget Casinos.
This week, the technology group confirmed the appointment of former Illinois Lottery General Counsel Melissa Riahei as first US President.
Riahei will work with Gavin Isaacs, the former President & CEO of Scientific Games who was appointed as SBTech Non-Executive Chairman at the start of 2019, to drive the technology group’s US growth mandate.