Rovell: DraftKings to Raise Around $1 Billion Through Stock Offering, Robert Kraft Cashes Out


Denise Truscello/Getty Images for DraftKings

In the world of sports betting, companies can’t seem to have enough money for the future.

DraftKings filed documents with the Securities and Exchange Commission on Monday, announcing the intention to raise money by selling 16 million additional shares that, when priced, will add an additional $800 million to $1 billion to the company’s coffer.

$1,000 Sign-Up Bonus
Full Review
Matched 1st bet up to $500
Deposit bonus up to $500
Action's Preferred Sportsbook

In addition, certain shareholders have agreed to sell some of their shares, including New England Patriots owner Robert Kraft. Kraft and his sons, Jonathan and Daniel, have a DraftKings portfolio worth $172 million based on the current stock price. Kraft is selling approximately 10 percent of his shares.

DraftKings’ stock closed at an all-time high $63.78 on Friday.

In the filing, DraftKings said its yet-to-be-finalized financials from July, August and September will result in revenue of between $131 and $133 million. However, its marketing expenses for those three months combined will be north of $200 million.

The company also notes a negative impact on its business due to COVID-19 and a larger win percentage for its customers on NFL betting.

The company did say, however, that more than one million bettors made bets with DraftKings in those three months, representing a growth of 64% as compared to those same months in 2019. The handle from those three months has grown 460% compared to the same period in 2019.

How would you rate this article?

Top Offers

Odds Boosts
See More >
Odds boosts are simply regular bets offered at enticing odds. They're available to everyone and there's no limit to how many you can bet.
Sportsbook Reviews
See More >
Discover the best online sports betting sites and take advantage of bonus offers from legal sportsbooks.
Expert Picks
See More >
See what plays the Action Network experts are making for all of today's games.
PRO Membership
See More >
Access betting systems and signals to get daily, actionable picks.
Download the App
See More >
Download the Action app to track all your bets in one place. Exclusive data helped you make smarter betting decisions.
See More >
The best sports betting newsletter with trends, insights and news - condensed in a two-minute read.
Live Odds
See More >
See live odds and the best lines for every game.

Follow Us On Social

Top Stories