DraftKings won the lucrative sports betting contract in New Hampshire last week, now rumors are spreading about the company talks for a takeover.
Bloomberg reported that DraftKings is holding talks with Diamond Eagle Acquisition Corp, however, the company refused to comment on the matter. DraftKings said that they would speak to several companies as per their daily business routine.
According to Diamond Eagle prospectus, the company was formed to carry out a merger with at least one company purposely. The company also aims to acquire assets, buy stock, capital stock exchange, and reorganization. Diamond Eagles is already listed in NASDAQ stock exchange.
Diamond Eagles was launched in March 2019, by 25th July, the company had already been listed in NASDAQ. It started trading shares at a price of $10.08. Since Diamond Eagle is already trading in the stock exchange, the acquisition of DraftKings will make it go public. Earlier, DraftKings had merger talks with FanDuel, but the government blocked the deal from materializing.
DraftKings Growth Curve In 2019
DraftKings was founded seven years ago as a fantasy sports provider. Last year, the company was allowed to start its first online sportsbook in New Jersey. After making a debut in NJ online sportsbook market, the company extended its operations in Indiana, Iowa, Mississippi, West Virginia, and New York.
DraftKings has experienced rapid growth in online sports betting application in 2019. In just two months, they added West Virginia and Indiana in its online portfolio. At the moment, they have a pending deal with the NH Lottery Commission, which might become DraftKings’ most profitable deal.
In other states where DraftKings operates online and retail sportsbooks, the competition is very high in both markets. But in NH, DraftKings is pursuing a deal that will ensure it remains the only online and retail sportsbook provider in the state. In return, DraftKings offers 50 percent of gross gaming revenue to the state for the exclusivity.
DraftKings Pennsylvania Mobile Market
Casino.org reported that the Pennsylvania Gaming Control Board has approved DraftKings online sportsbook license. The sportsbook provider will carry Meadows Racetrack and Casino labels starting late in November.