DraftKings added $300 million to its warchest this week after wrapping up a funding round led by Fox Sports. In return, the DFS site will reportedly spend around $250 million on ads on the TV network over the next three years.
If you recall, DraftKings recently announced a similar deal with Disney, which was to invest $250 million into the site in exchange for a half a billion ad spend commitment. The deal fell through at the last minute, leaving many to speculate that the family-friendly network got cold feet about backing a real money gambling site.
DraftKings later announced a revised deal with Disney-owned ESPN, which will see the DFS site spend $250 million on marketing at the network in an exclusive partnership.
Fox steps up to the plate
With Disney’s cash off the table, Fox Sports has stepped in to fill the void with a $150 million investment. Several other organizations contributed to the round, including three major league organizations, along with existing investors like Atlas Venture, DST Global, the Kraft Group and the Raine Group.
The deal with Fox is not exclusive, so other DFS sites will be allowed to advertise on the TV company’s properties as well.
“To receive this type of support from such an outstanding group of organizations, including three major sports leagues, is an incredible milestone for us and reaffirms our leadership position in Daily Fantasy Sports,” said DraftKings CEO Jason Robins in a release. “We intend to leverage these resources to develop even more innovative daily fantasy sports contests and provide new exclusive once-in-a-lifetime experiences for our players.”
According to the site, the funds will also be utilized to improve the company’s mobile product and launch its brand internationally.
“Partnering with DraftKings, a clear leader in this field, is a great opportunity for us to capitalize on the growth of daily fantasy sports for the benefit of our viewers,” said Eric Shanks, President and COO, FOX Sports. “We’ll work with DraftKings to develop ideas and create content to drive deeper engagement with sports fans across multiple platforms, including our national, local, and digital properties.”
Earlier this month, rival FanDuel announced its own nine-figure investment round, taking in around $275 million in venture funding. Both companies have been valued at just over $1 billion each.