Still deemed to be a ‘developing news story’, LegalSportsReport.com (LSR) has suggested that DraftKings is on the ‘cusp’ of announcing a new acquisition deal with online gambling and sports betting company SBTech after reported negotiations between the two parties.
Specifics of the agreement have not yet been confirmed, however the deal would offer DraftKings its own in-house platform provider, as it seeks to strengthen its position across more states that are legalizing.
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.”
LSR has reported that a variety of sources have confirmed negotiations between the two parties, but as yet no information has been made available with regards to deal timings or provisions.
LSR has estimated that the price DraftKings could propose could range between $300-500m in a move to completely acquire SBTech. DraftKings would have the chance to avoid costly sports betting product development, securing an ‘in-house platform’ through M&A.
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.
