As one of the US's premier sports betting companies, DraftKings knows all about reducing risk. Their recent merger* with SBTech, a primarily European sports betting technology provider, is a cautious move intended to diversify revenue streams--DraftKings is focused primarily on the US while SBTech is almost entirely European. However, the merger is not just intended to hedge against risk but is also intended to cause growth--the combined company, which will be known as DraftKings, will be the only vertically-integrated sports betting company in the US.
With this merger, DraftKings is also going public. Already, institutional investors have pledged over $300 million, and the company is expected to have an equity market capitalization at closing of $3.3 billion. With DraftKings, an investor has an opportunity to be a part of the multi-billion dollar online gaming market.
*Diamond Eagle Acquisition Corp., a special purpose acquisition company, will be acquiring both SBTech and DraftKings, and will then change its name to DraftKings.