- Betting industry insiders claim that DraftKings wants to purchase SBTech.
- The move would give DraftKings its own in-house sportsbook technology backend.
- DraftKings has not publicly indicated its interest in SBTech.
BOSTON – According to several industry insiders, DraftKings is looking at buying SBTech. SBTech, headquartered in the Isle of Man, is an international sportsbook technology firm.
The company recently partnered with the Oregon Lottery in a $26.8 million deal to provide the backend for the state agency’s online sports betting product. SBTech has also faced unsubstantiated accusations of operating unlawfully in various countries, which it denies.
Talk of the potential acquisition comes as DraftKings faces steep competition in the sports betting space from daily fantasy rival FanDuel.
As both companies seek to maximize their US footprints, it makes sense for DraftKings to invest in its own bookmaking technology solution.
Currently, DraftKings has a “multiyear deal” with international bookmaker Kambi to provide such services. The terms of the Kambi deal are not clear, nor is it known how DraftKings’ purchase of SBTech would alter the existing contract.
USAOnlineSportsbooks.com feels SBTech’s valuation is also unclear. DraftKings is expected to offer anywhere between $300 million and $500 million for the brand, but that’s little more than a mild guess from industry analysts.
DraftKings has neither confirmed nor denied its interest in SBTech.