DRAFTKINGS ABOUT TO FULLY ACQUIRE SBTECH FOR UP TO $500M?

US fantasy sports provider DraftKings is advanced negotiations to acquire SBTech, the online gambling and sports betting platform and services provider.

Multiple sources close to the companies have confirmed talks are in the late stages, and though no details have been officially provided, it is estimated DraftKings will offer between $300m and $500 to fully acquire SBTech.

So far there’s been no official word from DraftKings, beyond a statement a few days ago that said: “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.”

Such an acquisition would put DraftKings in an extremely advantageous position in the nascent US sports betting and iGaming markets, enabling it to bypass potentially costly product development.

On Friday AYO.NEWs reported that former General Counsel to the Illinois Lottery, Melissa Riahei, has been appointed president of the US division SBTech (read more).

AYO.NEWS says:

If DraftKings do fully acquire SBTech, as seems likely, it will give them a big advantage over arch-rivals FanDuel in their race to establish dominance in the emerging US sports betting and iGaming markets. It wouldn’t surprise us if FanDuel is also in talks with a platform and services provider.