DraftKings Submits Superior Proposal to Acquire PointsBet’s U.S. Business

Company Reiterates Expectation of Positive 2024 Adjusted EBITDA; Projects Acquisition Will Generate Incremental Adjusted EBITDA in 2025 If Completed

BOSTON, June 16, 2023 (GLOBE NEWSWIRE) -- DraftKings Inc. (Nasdaq: DKNG) (“DraftKings”) today announced that it has delivered a letter to both the Non-Executive Chairman and Chief Executive Officer of PointsBet Holdings Ltd. (“PointsBet”) setting forth an indicative offer to acquire PointsBet’s U.S. business in an all-cash transaction with a purchase price of $195 million (the “Proposed Transaction”). DraftKings’ proposal represents a 30% premium to PointsBet’s existing agreement to sell its U.S. business and is subject to the conditions described in the letter.

“While we continue to focus on operating more efficiently and driving substantial organic revenue growth in the United States, we will also look to prudently capitalize on compelling opportunities at attractive valuations, as is the case with PointsBet’s U.S. business,” said Jason Robins, DraftKings’ Chief Executive Officer and Co-founder. “We believe DraftKings is uniquely positioned to submit this superior proposal due to our scale and corresponding ability to generate meaningful synergies from the acquisition.”

“We expect this transaction to increase our Adjusted EBITDA potential in 2025 and beyond and not impact our expectations of achieving positive Adjusted EBITDA in 2024,” said Jason Park, DraftKings’ Chief Financial Officer. “We are excited about the potential synergies available by acquiring PointsBet’s U.S. business, including offering our customers interesting new bet types and accelerating our roadmap of bringing in-house more of our mobile sports betting technology.”

The full text of DraftKings’ letter to both the Non-Executive Chairman and Chief Executive Officer of PointsBet is provided below:

June 15, 2023

Mr. Brett Paton, Non-Executive Chairman of the Board
Mr. Sam Swanell, Chief Executive Officer
PointsBet Holdings Ltd.
Level 2 165 Cremorne Street
Cremorne, VIC 3121, Australia

Re: Indication of Interest in the Acquisition of PointsBet’s US Business

Dear Brett and Sam:

On behalf of DraftKings Inc. (“DraftKings”, “we”, “us” and “our”), I am submitting this indicative offer (the “Indicative Offer”) to acquire the United States online sports betting, iGaming and retail sportsbook business (“US Business”) of PointsBet Holdings Ltd. (“PointsBet”) on the terms and conditions described below (the “Proposed Transaction”).