New Funding for DraftKings Possible as Value Declines 60 Percent

Written by:
Aaron Goldstein
Published on:
New Funding for DraftKings Possible as Value Declines 60 Percent

Following news that Fox Sports had devalued Daily Fantasy Sports juggernaut and pseudo partner DraftKings by 60 percent, at least one media outlet is reporting a possible new round of funding for the beleaguered company.

Eric Fisher of the Sports Business Journal tweeted Wednesday:

There have been rumors - unconfirmed - of potential new funding for DraftKings. If it happens, could be looking at a down round.

Awful Announcing writes of the Fox Sports analysis, issued this week:

Fox Sports made what was viewed as an “imperative” investment in DraftKings last July, bankrolling a $160 million commitment to the company that was crucial in funding its massive ad-buying campaign. But in its quarterly earnings report on Tuesday, Fox announced that it marked down the value of that investment by 60 percent. Over a period of approximately six months, the value of that investment had dropped by $95 million.

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Gambling911.com has learned that the Queens District Attorney’s Office initially launched an investigation into the Daily Fantasy Sports sector but dropped said probe after realizing the New York State Attorney General’s Office filed its own action against Manhattan-based FanDuel.  They then determined the AG Office was already three months ahead with the process.  The AG’s Office opted not to level indictments against either FanDuel or DraftKings, the later of which it also specifically names in its complaint.  Other states – most notably Nevada, Massachusetts and Florida – have since launched their own probes into the industry. 

- Aaron Goldstein, Gambling911.com

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