DraftKings has pulled it off. The major U.S. sports gambling operator is about to become the first sportsbook to be traded publicly when the bell rings on Wall Street today. Shareholders of Diamond Eagle Acquisition Corp. showed a massive amount of support for a reverse merger involving DraftKings and SBTech yesterday, approving the deal and paving the way for the creation of the DKNG ticker on the NASDAQ stock exchange. The proposition has been created, in part, to help DraftKings counter lower profits, which it has seen in spite of increased revenue.
According to a press release, DraftKings is now the first, and only, vertically-integrated pure-play sports gambling and online gaming entity in the U.S. through the successful merger. In addition to finding its stock on the NASDAQ exchange, its warrants will also be listed there using the ticker DKNGW. The company will continue to maintain its headquarters in Boston, Massachusetts, as well as keep its other offices around the country and the globe, and there are no anticipated changes coming at the top echelon. Jason Robins, who co-founded DraftKings with Matt Kalish and Paul Liberman, is still going to serve as CEO, while Kalish retains his title of President, North America and Liberman keeps his spot as President, Global Technology and Product.
Speaking on the completion of the merger, Robins states, “Today marks another milestone for DraftKings and the future of digital sports entertainment and gaming in America. By bringing together our leading consumer brand, data science expertise and industry-leading products with SBTech’s proven technology platform, we will accelerate our innovation, growth and scale. I am confident that the new DraftKings will progress our goal of offering the best, most innovative sports and gaming products to our customers.”
Robins is preparing an update on the deal that will be made available as of 8:00 AM Eastern Daylight Time today. His pre-recorded remarks are designed to give shareholders more information regarding the NASDAQ launch and the state of operations going forward, and will most likely include information regarding the company’s shares structure. Those who have purchased DraftKings Class A stocks are entitled to one vote per share on certain matters related to corporate operations, while those who own Class B stocks are given ten votes per share.
DraftKings has been given a valuation of $3.3 billion as a result of the merger, despite the recent financial struggles. However, the future looks much brighter, as many gaming analysts predict that the coronavirus-caused economic depression is going to result in states across the U.S. becoming more amenable to legalized sports gambling as a means to secure a fast recovery. The market was on its way to becoming robust before COVID-19, and even greater action is expected once the pandemic is defeated.