Tech hungry DraftKings reported to be eyeing SBTech takeover

Published as a ‘developing news story’, US industry news source LegalSportsReport.com (LSR) informs that DraftKings is on the ‘cusp of acquiring’ online gambling platform provider SBTech in a deal that will have global ramifications for multiple industry stakeholders.

In its update, LSR reports that multiple sources have confirmed negotiations between the two parties, but as yet no information has been made available with regards to deal timings or provisions.

DraftKings governance is reported to be assessing acquiring an online gambling platform to accelerate its position within multiple US jurisdictions by 2020.

A takeover of SBTech would see DraftKings bypass costly sports betting product development for its US ambitions, securing an ‘in-house platform’ through M&A.

LSR outlines that DraftKings governance could proposition between $300-to-$500 million in its bid to acquire SBTech outright, securing its desired platform technology.

To date, DraftKings has utilised Stockholm-listed Kambi Group Plc as its lead sports betting platform supplier, launching its first sportsbook property within the state of New Jersey post-PASPA.

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.

This week, the technology group confirmed the appointment of former Illinois Lottery General Counsel Melissa Riahei as first US President.

Riahei will work with Gavin Isaacs, the former President & CEO of Scientific Games who was appointed as SBTech Non-Executive Chairman at the start of 2019, to drive the technology group’s US growth mandate.