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DraftKings scores $41 million, acquires a competitor

DraftKings logo
DraftKings logo
DraftKings.com

DraftKings, the leading player in the rapidly growing daily fantasy sports market, has raised another $41 million dollars in a funding round led by The Raine Group. The company also announced today that they have acquired yet another competitor, as DraftKings continues their march to dominate the world of daily fantasy sports.

The DraftKings model focuses on fantasy sports at the single-game level, instead of operating season-long leagues. That means DraftKings players tend to be less likely to lose interest over the course of the year if things aren’t going their way.

If that sounds like a work-around to make sports betting legal, you aren’t far off-base. According to CEO Jason Robins, DraftKings will pay out about $200 million in prizes this year. The site even boasts that it will offer four monthly prizes of $1 million each during this year’s NFL season.

Only a month ago, DraftKings announced it was acquiring competitor DraftStreet. Now, the company has purchased the assets of StarStreet. Both acquisitions involve shutting down the competing services and moving those users onto the DraftStreet platform.

“It’s a very seasonal business when it comes to customer acquisition, and the NFL season is the best time to acquire them,” Robins told TechCrunch.

The company will use their new funding to aggressively target mobile platforms as a way to expand the service’s appeal to more casual fans.

DraftKings raised $25 million last November and has reportedly raised somewhere in the neighborhood of $75 million in total. Not a bad run for a company that’s barely two years old.