“Leaked” Report Shows Just How Much DraftKings and FanDuel Are Losing
DraftKings and FanDuel are once again featuring prominently in the headlines. After a period of calm both DraftKings and FanDuel are facing new legal challenges to their proposed merger. As we reported the FTC has intervened to block the planned merger based on the premise that it would create a monopoly that would result in the public suffering due to a lack of competition.
A report just leaked by Axios gives some fascinating insights into just how much money the industry actually generates. The leaked 106- page merger document contains a lot of information including company financials post–merger structures, valuations etc.
The figures in the report show that revenues generated last year by DraftKings were $160m while thy reported an operating loss of $92m. To put this in perspective it is actually way better than the $509m lost by DraftKings in 2015 which was at the height of both FanDuel’ s and DraftKings media blitz.
FanDuel performed better than DraftKings in 2016 with revenue for the first 10 months amounting to $91m while recording earnings loss of $59m.
The figures confirm what is no secret in that with all the hype both companies have generated in the last few years, both companies operate at a loss still despite the fact that they have received massive funding over the years. The proposed merger is aimed at reducing staff redundancies and cutting costs which many believe is the only way the industry can finally recover. This rational is set to be used by both DraftKings and FanDuel according to the New York Times to justify the planned merger. There is even rumors that the financials were accidentally leaked by the parties themselves.