DraftKings applies for New Jersey licence ahead of funding round
Operator trying to raise $200m in funding for sports betting expansion
DraftKings has confirmed its application for a licence to offer sports betting in New Jersey, as the business readies itself for sports betting.
The application comes amid reports that the company is looking to raise between $150m and $200m in funding for further expansion of its sports betting business.
Coincidentally, this would be the company’s first round of funding since the aborted merger between DraftKings and FanDuel last year.
According to Axios, DraftKings is telling prospective investors it expects daily fantasy sports to generate the majority of company revenue for years to come, given the relatively slow process of state-by-state approvals for sports betting.
The company recently inked a partnership deal with Resorts Atlantic City to offer sports betting, aiming to have the required licences by the start of the new NFL season in September.
Speaking about the New Jersey licence application, Tim Dent, chief compliance officer and chief financial officer at DraftKings said: “The New Jersey DGE has been on the leading edge of creating a smart, consumer-focused sports betting framework in the Garden State.
“We are working with New Jersey officials toward a public rollout of a DraftKings sports betting product.”
At the same time the company has announced the appointment of Karl Gambin as its new director of gaming operations in New Jersey.
A veteran of the online gaming industry, Gambin has held various positions within the industry, most recently as director of New Jersey operations and compliance for GVC Holdings. He has also served as a risk and operations manager for bwin.
Gambin will be responsible for DraftKings’ compliance, customer and regulatory activities in the state, and will be based out of the company’s new Hoboken office.