SBC News DraftKings secures $150 million in new funding ahead of NFL 2016/17

DraftKings secures $150 million in new funding ahead of NFL 2016/17

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Ted Leonsis & Steve Case

US tech news sources have revealed that Boston-based fantasy sports operator DraftKings has raised circa $150 million (£115 million), in its latest funding round.

The $150 million round is reported to be led by Revolution Capital, the investment firm of AOL founder Steve Case, who is joined by US pro-sports franchise mogul Ted Leonsis, the owner of the Washington Capitals (NHL) and Wizards (NBA).

It has been reported, that as part of the deal Revolution Capital’s Steve Murray, a former Managing Director of Softbank Capital will join the DraftKings’ board.

DraftKings secures its new funding round ahead of the start of the NFL 2016/17 season (9 September), a key period for US fantasy sports operators.

At present, DraftKings governance has not detailed how it will use the funds raised. To date, it is estimated that the Boston-based firm has raised approximately $600 million in venture funding carried out through eight financing rounds.

The ambitious DFS operator has secured numerous high-profile investors including Robert Kraft, owner of the New England Patriots and 21st Century Fox.

2016 has not been kind year for DraftKings, the operator has faced numerous legal battles fighting for the legality of daily fantasy sports within numerous US states. Furthermore, the operator has had to combat allegations of competition data breaches in the DFS industry, losing consumer trust.

In an Interview with Fortune Magazine this July, DraftKings CEO and Co-Founder Jason Robins stated that his firm needed to “take a second look at its advertising”, in a move to regain US consumer confidence.

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