Fresh off the legalization of online daily fantasy sports in New York and Massachusetts, investors have poured another $153 million into DraftKings.
The massive funding round was first reported by Fortune[2]. A DraftKings spokeswoman confirmed the investment in an e-mail to Xconomy.
The investors include new backer Revolution Growth[3]. That Washington, DC-based venture firm was co-founded by AOL co-founder Steve Case and Ted Leonsis, owner of the Washington Capitals, Washington Mystics, and Washington Wizards. As part of the deal, Revolution partner Steve Murray will join the DraftKings board, according to a statement attributed to DraftKings CEO Jason Robins that was e-mailed to Xconomy.
In the statement, Robins (pictured above) cited Revolution’s “deep expertise in sports, technology, and policy” as some of the reasons why the investment makes sense for DraftKings.
The DraftKings spokeswoman declined to name other investors in the round or confirm the company’s total venture capital haul.
The new round isn’t DraftKings’ largest to date—it previously announced a $300 million investment in July 2015[4], and quietly raised another $200 million shortly thereafter, as the Boston Globe reported[5] in October, citing an anonymous source. Sources told the Globe[6] DraftKings snagged another $70 million in February, amid regulatory scrutiny[7] around the country and a legal battle in New York[8], whose attorney general tried to shut down the daily fantasy sports industry there.
DraftKings and New York-based rival FanDuel have since cleared several hurdles. In August, the governors of New York and Massachusetts signed legislation[9] enabling daily fantasy sports. Eight states have passed such laws this year, according to Legal Sports Report[10], a website that tracks the industry.
Still, DraftKings has taken its lumps. The new funding round values the company much lower than the $2 billion post-money valuation DraftKings reportedly received from investors in the summer of 2015, sources told Fortune.
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References
- ^ Xconomy Boston (www.xconomy.com)
- ^ reported by Fortune (fortune.com)
- ^ Revolution Growth (revolution.com)
- ^ $300 million investment in July 2015 (www.xconomy.com)
- ^ reported (www.bostonglobe.com)
- ^ told the Globe (www.bostonglobe.com)
- ^ regulatory scrutiny (www.xconomy.com)
- ^ legal battle in New York (www.xconomy.com)
- ^ signed legislation (www.xconomy.com)
- ^ Legal Sports Report (www.legalsportsreport.com)
