Basketball legend Michael Jordan to invest in Paddy Power's US rival

DraftKings said Mr Jordan will also take a seat on its board, acting as a special advisor. File picture: Robert Sullivan/Getty Images

Basketball legend Michael Jordan is to take an undisclosed equity stake in DraftKings, the main rival of Paddy Power owner Flutter Entertainment in the US fantasy sports betting market.

Flutter acquired FanDuel — DraftKings’ main rival — in 2018. 

That deal followed a failed merger between DraftKings and FanDuel.

DraftKings said Mr Jordan — the former Chicago Bulls legend — will also take a seat on its board, acting as a special advisor.

Mr Jordan has agreed to take an equity interest in DraftKings and will provide strategic and creative advice on areas including product development and marketing, the sports betting company said.

DraftKings was taken public earlier this year by an entity founded by Hollywood executives Jeff Sagansky and Harry Sloan in a deal that valued the company at $3.3bn.

The announcement added nearly $800m to the company’s market value, which stood at $13.1bn.

There has been long-term optimism in the growing market for US sports gambling, even as the Covid-19 pandemic has led to broadcast networks and sports leagues either postponing or rescheduling games and seasons.

Presenting Flutter's interim financial results last week, the group's chief financial officer Jonathan Hill said the US is Flutter’s “single biggest growth opportunity” and the group hopes to have a presence in nine states by the end of this year.

Additional reporting Reuters