Online fantasy sports provider DraftKings has announced the acquisition of rival operator StarStreet and the closing of a $41m Series C funding round which it says will further bolster its status as the largest US-based online destination for daily fantasy sports.
The acquisition of the principal assets of StarStreet for an undisclosed amount sees StarStreet customers being offered a 100 per cent balance transfer bonus for transferring their account to DraftKings, which is bolstering its fantasy sports prize pools after securing $41m in new funding.
The funding round was led by The Raine Group with participation from existing investors Redpoint Ventures, GGV Capital, and Atlas Venture.
The company said it would use the funds to enhance its mobile and online destinations, bolster its user base, attract highly skilled employees, and offer a richer variety of sports with increased guaranteed contest prizes.
This includes a new NFL Fantasy Football Millionaire series which awards four players $1m in four months—the span of the NFL regular season. DraftKings describes the new series as “the largest promotion in history for daily fantasy sports” and says it plans to award more than $100m in collective prizes this NFL season.
“This round of funding, led by Raine with their vast experience and network in the sports and entertainment space, allows us to significantly increase our player base and liquidity as we add StarStreet to the DraftKings family,” said Jason Robins, CEO and co-founder of DraftKings.
“This is a groundbreaking week for DraftKings. We expect the growth in contest sizes and variety to continue. We look forward to continuing to transform the industry through technology innovation and larger and even more exciting contests, cementing our position as the best destination for daily fantasy sports.”
John Salter, partner at The Raine Group, added: “Daily fantasy sports represents a tremendous area for growth in the multi-billion dollar world of fantasy sports, and Raine is pleased to lead this investment round for DraftKings.
“DraftKings has established the optimal mix of cutting edge technology, broad industry knowledge and a deeply loyal user base to further push its leadership in this space and we are delighted to partner with them as they continue to expand.”