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Mike Johnson June 17, 2020 3 min read
DraftKings and BetMakers Each Raise Funds to Continue with US Push
Sports betting platforms DraftKings and BetMakers are continuing their expansion in the US by offering new shares to raise additional capital.
Some 33 Million Shares to Be Sold by DraftKings as Companies Aim at US Expansion
Announced yesterday, June 16, the sports betting operator DraftKings shared its intention to initiate a public offering, launching 33 million shares of its Class A common stock for potential investors to pick. The stocks actually consist of 14 million shares of new Class A common stock, while 19 million of the shares will be sold by existing shareholders. Besides those shares, the stockholders are also planning to offer the underwriters a 30-day option to purchase an additional 4.95 million shares of Class A common stock. DraftKings will receive proceedings from the sale of the new Class A common stock, but will not receive proceedings from the sales of stocks by the stockholders. The deal could lead to $1.3 billion raised in total for DraftKings.
One of the stockholders who plans to sell off his shares is Shalom McKenzie. He is the founder of SBTech and will offer 3,661,990 or 9.3% of the total offering. Richard Carter, a former executive at SBTech will also participate with 94,913 shares. Big part of the Class A shareholder’s stock will be sold by Jason Robins.
Robins, who is the co-founder of DraftKings, will sell 13,695,566 Class A shares. A hefty piece of 23,170,880 Class A Shares which is 6.7% will be sold by Josh Salter who is a co-founder of the Raine Group. The head of Kraft Group, Robert Kraft will sell some 339,199 Class A shares. Ryan Moore who is one of the first businessmen to buy DraftKings shares also plans to sell some 1,000,000 million shares. Another 51,093 shares will be available for selling by NHL Enterprises and some 20,437 shares will be put up for sale by Legends Hospitality.
BetMakers Also Makes a Move on the US Market
Elsewhere, BetMakers is also making a move towards expanding in the US. The online betting operator BetMakers Technology Group (BET) has placed AUS$35 million (US$24.1 million) in new shares, aiming at expansion in the US. The new shares, selling at AUS$0.37 each, are already gaining popularity among new investors.
Commenting on the subject, BetMakers’ managing director Todd Buckingham said: “We are grateful for the ongoing support shown from our existing investor base as well as the strong interest from new institutional investors in BetMakers.” He continued by saying that the company will continue to peruse strategic opportunities and keep up the path towards growth. In conclusion, Buckingham said:
These plans include the distribution of fixed odds race betting into the US, the expansion of our managed trading services offering globally and the distribution of international racing content to wagering operators in Australia, the US and the UK.”
The most recent move by BetMakers is actually not the first by the company in recent months. Back in February, the sports bets struck a 10-year deal with the New Jersey Thoroughbred Horsemen Association and Darby Development. Looking back to April, BetMakers extended and leveled up its partnership with the sportsbooks William Hill.