Major sportsbook DraftKings has outgrown its current digs in Boston. It has had to relocate its headquarters to a larger building, but asserts that it is committed to maintaining the city as its home. The new location will be unveiled on Tuesday (March 26) in a ribbon-cutting ceremony and a tour of the new spaces.
DraftKings first announced that it needed new facilities early last year. Its new space is almost twice as large as its previous headquarters and comprises a total of 105,000 square feet new Copley Square in the Back Bay neighborhood of Boston. Its previous headquarters was located close to South Station.
DraftKings first launched operations in 2012 and quickly ramped up its activities in the daily fantasy sports (DFS) market to become one of Boston’s largest tech companies. It has continued to expand over the years and, after the U.S. Supreme Court axed the Professional and Amateur Sports Protection Act of 1992 (PASPA) last May, has seen a number of new deals, including new operations in New Jersey and Mississippi.
Early last year, the company employed about 425 employees. It has plans to expand the workforce to over 700, of which 600 will be based in Boston.
DraftKings was the first in New Jersey to offer digital betting and quickly rose to be a leading source of growth in the sector. It has since had to compete against FanDuel in the state, resulting in a drop in revenue. According to the New Jersey Division of Gaming Enforcement, FanDuel is now stronger in the state than DraftKings, with the former achieving February revenue of $6.6 million. On the other hand, DraftKings has dealt with a drop of 46% in its revenue, taking in only $3.7 million.
That loss will be offset by new partnerships being developed. The company signed a multi-year deal with Caesars Entertainment Corp. in February that will give it access to all the states where Caesars has operations and where sports gambling has been legalized.
Caesars will benefit extensively from the partnership, as well. It took an equity stake in the company and will receive a percentage of revenue from the sportsbook’s operations.
