DraftKings reveals $114.1m loss in SBTech merger statement

8 January 2020

Diamond Eagle Acquisition Corp – the special purpose acquisition company formed as part of DraftKings and SBTech’s merger – has filed a registration document revealing DraftKings made a loss of $114.1m (£87.1m/€102.7m) in the first nine months of 2019.

The document also confirms that DraftKings will – eventually – migrate from its current sportsbook technology partner Kambi to SBTech’s solution.

In the prospectus, filed with the United States Securities and Exchange Commission (SEC), the acquisition company revealed that DraftKings’ revenue for the nine-month period came to $192.0m, a 44.3% year-on-year increase.

DraftKings’ direct costs of revenue, however, were up to $64.7m, a 143.5% increase. The business said that product taxes, platform costs, and payment processing fees and chargebacks contributed $13.1 million, $12.4 million and $6.4 million, respectively, to the $38.2m increase in costs of revenue from 2018.

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