Despite ongoing legal fights in a number of states, DraftKings has managed to raise about 0 million in new investment funding.
The latest round of investment was led by Washington D.C.-based Revolution Capital, the venture firm headed by AOL founder Steve Case and Washington Capitals and Wizards owner Ted Leonsis. As part of the deal, Revolution Growth’s Steve Murray will be joining DraftKings’ board.
The daily fantasy sports company did not release details on how the funding will be used, but it does come as the NFL season begins, which is daily fantasy sports busiest time of the year.
Previous investors include the Kraft Group, which owns the New England Patriots, Madison Square Garden Co. and a venture arm of Major League Baseball.
Though the company did not disclose the current valuation of DraftKings, Fortune magazine reported—citing people familiar with the funding—that the $150 million was raised at a lower valuation than a prior $2 billion value put on the DFS company last year when it raised more than $1 billion in funding.
In other DFS news:
Texas State Representative Richard Pena Raymond announced he plans on filing a bill that will clarify the daily fantasy sports industry in the state and classify DFS as a game of skill.
Ken Paxton, Texas Attorney General, announced an opinion in January that daily fantasy sports is considered a prohibited form of gambling in the state. No date for the introduction of the proposed bill was given.
Also, Las Vegas Sands owner Sheldon Adelson—who has spearheaded a so far unsuccessful drive to be online gambling in the U.S.—told Yahoo Finance he considers daily fantasy sports to be gambling.
“Well, that’s the whole argument going on right now, whether daily fantasy sports is gambling,” Adelson said. “And state-by-state gambling law has become a hotly contested issue because of these companies. Listen, I’m in the business. I’m the largest company in the gaming business by market cap and I can tell you this. Daily fantasy sports is gambling. There’s no question about it. Anybody can play this, and they can gamble on it.
Though Adelson’s proposed online gambling ban doesn’t include fantasy sports, the billionaire said he is opposed to DFS.
“I think it exploits poor people. I was one myself,” he said. “And I don’t want people that are exploitable to be exploited. I can make money in an honest way—as a form of entertainment. If people want to come and be entertained I’m very happy to provide that service. But why do I need it, the fantasy sports? We’re making money without it. I don’t need it. And I think it’s immoral.”
