You might not know about DraftKings’ net worth. However, DraftKings may be a familiar name if you’re into daily fantasy sports or sports betting.
The net worth of DraftKings was $11.25 billion as of May 2022. This company has seen exponential growth since it opened its doors in Boston. After a failed merger, it launched its first sportsbook. DraftKings furthered its undertakings by creating fantasy sports contests for five major American sports leagues. This includes Major League Baseball (MLB) and National Football League (NFL).
Let’s discover more about DraftKings and how the company gained a net worth of over $11 billion.
What Is DraftKings?
DraftKings is a daily fantasy sports tournament and sports betting company founded by Jason Robins, Matthew Kalish, and Paul Liberman. The trio had a love for fantasy sports. So they came up with the idea of daily fantasy sports over season-long sporting events.
It first started as a fantasy sports company in 2012 in Boston, Massachusetts. In its first years, many investors backed DraftKings, making it one of the two largest daily fantasy sports companies alongside FanDuel.
DraftKings agreed to a merger with FanDuel in 2016. The Federal Trade Commission later terminated it in 2017. This is because the joint company would control over 90% of the daily fantasy sports market if the merger had gone ahead.
Following the failed merger, DraftKings released its initial online sportsbook. This was in 2018. It now has mobile sports betting in several states. These include Indiana, Pennsylvania, and West Virginia.
DraftKings went public in 2020. Today, it has daily fantasy sports contests based on the five popular American sports leagues. These include MLB, NBA, NFL, NHL, and PGA. It also has contests based on international sports leagues. Some examples are the UEFA Champions League and the Premier League.
What Is DraftKings’ Net Worth?
Net worth indicates both an individual’s and a company’s financial health. Shareholders consider a company’s net worth as a pointer to how they’re performing in the market.
It’s the difference between the assets a company owns and its total debt. The company’s total assets and total liabilities represent these figures.
However, for publicly-traded companies, market capitalization is often used as a measure of the company’s net worth. And, as DraftKings is a publicly-traded company, we will use its market capitalization figure.
Market capitalization is calculated by multiplying the closing price of the company’s stock by the number of shares the company has outstanding. Although DraftKings is still one of the top daily fantasy sports companies, its market capitalization has dropped in the past year or so.
DraftKings had a closing stock price of $12.61 on 13 May 2022. And DraftKings’ net worth, or market cap, was $11.25 billion.
DraftKings is still a popular daily fantasy sport and sports betting company with enormous growth potential. As sports betting is no longer frowned upon in the US, they can venture into new markets. It’ll be interesting to see DraftKings’ evolution because of this change.