DraftKings to Go Public After Merger

Diamond Eagles Acquisition Corporation acquired the fantasy and sports betting site

DraftKings has been building its sports betting platform since 2017. Getty Images, Draft Kings
Headshot of Ryan Barwick

DraftKings, a daily fantasy and sports betting site legal in most states, will soon be a public company. The betting site announced today that it has been acquired by Diamond Eagles Acquisition Corporation, a publicly-traded company alongside SBTech, a b-to-b tech company that works alongside sports betting sites.

As part of the new deal, Diamond Eagle will change its name to DraftKings, now a household name among sports fans. The transaction between DraftKings, SBTech and Diamond Eagle is expected to close by June of 2020 with an anticipated market value of $3.3 billion, according to DraftKings.

DraftKing CEO and founder Jason Robins will remain the leader of the new company.

“I look forward to building significantly upon our goals of continuing our state-by-state rollout and creating the most entertaining and engaging customer experiences for sports fans globally,” Robins said in a statement.

In previous NFL seasons, DraftKings made a name for itself by “carpet-bombing” the television landscape in order to grow brand awareness. Buoyed by the legalization of sports betting, it has become more selective in its advertising by taking its creative team in-house and launching local campaigns (based on the legality of sports betting).

Legal sports betting in the U.S. could be worth as much as $7.9 billion by 2024, according to Gambling Compliance, the industry’s trade group.

@RyanBarwick ryan.barwick@adweek.com Ryan is a brand reporter covering travel, mobility and sports marketing.