DraftKings Scores $300 Million in Funding, Led by Fox Sports

Re/code reported that DraftKings has raised a $300 million round led by Fox Sports, which values the startup at more than $1.2 billion. Also participating in the round were major North American sports leagues Major League Baseball, the National Hockey League and Major League Soccer; leading sports organizations The Madison Square Garden Company and Legends; as well as existing investors Atlas Venture, DST Global, GGV Capital, The Kraft Group, The Raine Group and Wellington Management Company LLP.

DraftKings said it would use the funds to expand its offerings and launch games internationally.

DraftKings has become the fastest-growing company in DFS since its launch in 2012, having just registered its 100 millionth contest entry this month.

Whereas fantasy-sports leagues typically span an entire season, DraftKings offers single-day online games that lets users win cash and prizes across a variety of pro and collegiate sports. DraftKings said it expects to award well over $1 billion in prizes this year, up from about $300 million in 2014.

As part of its funding agreement with Fox Sports, DraftKings will be committed to spending $250 million ad-spend on the broadcasters media and digital channels over the next three years.

“We are delighted to partner with DraftKings to give our passionate fans another innovative way to experience the sport that they love”.

Just a month after Walt Disney reportedly backed out of a expected investment in Boston startup DraftKings, the Bay State company has found some other big-name investors willing to bet on its ability to rule the daily fantasy sports world.

“The increasingly popular daily fantasy sports space is a proven fan development tool that we’re excited about”, said Gary Stevenson, president and managing director of MLS Business Ventures.

The Raine Group worked as exclusive advisor to DraftKings on the transaction.

The companies seemingly agreed on more than just the venture funding.

The battle between DraftKings and FanDuel for daily fantasy supremacy has exploded this year. However, the Boston-based daily fantasy company still concluded a deal with Disney-owned ESPN for (eventual) exclusive advertising.