DraftKings reported to be ‘quietly’ seeking further $200 million in investment

Jasonrobins
Jason Robins – DraftKings CEO

The Boston Business Journal reports that DraftKings is ‘quietly’ seeking to raise a further $200 million in investment.

If the Boston based DFS operator achieves its target funding, the company will have an estimated $2 billion valuation according to VC research and intelligence firm PitchBook.

In six rounds of venture funding DraftKings has raised $375 million in investment from a reported 14 investors (Crunchbase) including media owner 21st Century Fox. In 2015 DraftKings and main competitor FanDuel have entered the illustrious  ‘Unicorn Club, reaching corporate valuations of  $1 billion

The Boston Business Journal reports that although under increased scrutiny, it appears that DFS operators are still an attractive proposition to major tech investors.

DraftKings is pursuing the investment, despite it being embroiled in a much publicised controversy regarding employee data. In recent weeks the DFS industry has faced growing media and political scrutiny regarding the legality of its services.

At present the FBI, ordered by the US Department of Justice is undertaking an investigation of DraftKings and FanDuel operations.

Amid growing scrutiny of its sector, this week the Fantasy Sports Trade Association (FSTA), announced that it had formed the Fantasy Sports Control Agency (FSCA) which would be led by former US labor Secretary Seth D. Harris.

 

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