SBTech cyberattack changes terms of DraftKings merger deal

Sports betting technology provider SBTech’s recent cyberattack could end up costing the company millions but won’t derail the company’s impending acquisition by DraftKings.

On Wednesday, by Nasdaq-listed Diamond Eagle Acquisition Corp (DEAC) filed papers with the US Securities and Exchange Commission (SEC) detailing an amendment to the company’s previously announced ‘business combination agreement’ with sports betting operator DraftKings and the Malta-based SBTech.

The deal is effectively a reverse merger that will allow DraftKings to go public by being joined with DEAC, a ‘special-purpose acquisition company’ founded by former Hollywood exec Jeff Sagansky. The deal will see SBTech replace Kambi as the enlarged DraftKings’ betting technology supplier.

Wednesday’s filing indicates that DEAC expects some legal blowback from last month’s cyberattack on SBTech’s data centers, which knocked the company’s 50-odd global sports betting clients offline for several days before operations could be safely resumed.