DraftKings Looking for $150 Million Cash Boost To Support US Expansion Plans
There is no doubt that daily fantasy operators like DraftKings and FanDuel have the most to gain for the landmark PASPA decision that enable legal sports betting in the US. While only a few months ago FanDuel were reportedly in major financial woes following the failed merger with DraftKings, all has been turned around with Paddy Power Betfair acquiring them.
While FanDuel can now rely on the deep pockets of a giant like Paddy Power Betfair, DraftKings who for now have decided to go alone into the US sports betting market now have to look for financing to support their expansion plans.
According to reports from Axios DraftKings is looking for more than $150 million in investment to assist in their sports wagering business. DraftKings according to the reports still believes that the majority of their revenues will come from the DFS market as the sports betting industry will take time to get state-by-state approval.
Expenses are high and DraftKings have already filed for a Casino Service Industry Enterprise License in New Jersey. Their selected partner in the state is Resorts Casino Hotel which is part of the requirements for an operator to launch in the market.
According to DraftKings CFO Tim Dent,” The New Jersey DGE has been on the leading edge of creating a smart, consumer-focused sports betting framework in the Garden State. We are working with New Jersey officials toward a public rollout of a DraftKings sports betting product.”