DraftKings Reportedly Looking To Raise An Additional $200m
For those who thought that the problems in the last few months in the daily fantasy sports sector marked the beginning of the end, CEO of DraftKings thinks otherwise. In fact instead of taking a step backwards and keeping a low profile there are reports that DraftKings are seeking to raise an additional $200m. The Boston Business Journal was the first to report on the move which follows their recent $300 million fund raising three months ago.
While the reports are unconfirmed both DraftKings and FanDuel have been rocked by the Ethan Haskel scandal that has threatened to bring them down. The optimists believe that despite the growing problems the overall thinking is that DraftKings will prevail and continue to increase in popularity. In fact many believe that the present crisis could result in the industry implementing checks and balances that until now were not in place.
DraftKings CEO Jason Roberts says that the scandal involving the DFS industry is been fuelled by a “media frenzy.” Robins was talking at the Sports Media and Technology Conference on Thursday.
Robbins has been under increasing pressure but at least in public seems to be in control of the problem, Robins went on to say at the conference,” My initial reaction was I’m stunned this is a big story, especially knowing that the underlying cause of this story was a complete fabrication. The feeding frenzy isn’t over but it’s died down a bit . . . people are starting to have a more measured discussion.”
FanDuel CEO Nigel Eccles has also acknowledged to customers that “real questions have emerged” regarding daily fantasy sports and is adamant that FanDuel will support any “sensible regulation” aimed at protecting the integrity of the sport.