In the past year, many sports betting companies scramble to establish a foothold in the U.S. sports betting market. Thus, new partnerships between American and European gambling companies have taken place along with the creation of new sportsbook brands. The latest industry rumor is about the possibility of DraftKings Buying SBTech, a major sports betting Software Company.
According to several gambling industry news insiders, DraftKings has been looking to increase their hold of the sports wagering market. Therefore, they have been looking for possible partners or outright purchasing other companies to help them achieve their goals.
What are the Odds of DraftKings Buying SBTech
Thus, DraftKings Buying SBTech would align with their goals as it would give them their own in-house sports gambling platform. In addition, they would also have an online casino platform and access to a larger share of the gambling market.
Despite the rumors, DraftKings would not confirm nor deny the possibility of such a deal. Their representative said:
“DraftKings speaks to a variety of companies regarding various matters in the normal course of business, and it is our general policy not to discuss the specifics of any of those discussions.”
Such a response is the standard for any companies. However, if the deal came thru, industry analysts believe it would be worth around $300 to $500 millions. In addition, it would provide DraftKings with several ways to quickly expand into the U.S. gambling market.
For example, if DraftKings is able to acquire SBTech, it would increase and quicken their chance of operating in Pennsylvania. At the moment, they are waiting for PGCB to approve their sports betting operator and interactive gaming operator license.
Thus, if their application goes thru and they own SBTech, they could have a sportsbook in Pennsylvania by football season. At the moment, DraftKings is using Kambi as their sports betting platform supplier for its sportsbook in New Jersey. However, if they acquire SBTech, it will greatly expand their reach since SBTech is a popular gambling platform in Europe.