DraftKings

DraftKings went public through one of the most complex SPAC transactions ever — a three-way merger combining Diamond Eagle Acquisition Corp, DraftKings (the fantasy sports company), and SBTech (a gambling technology provider). The deal closed in April 2020, perfectly timed as states across America began legalizing online sports betting.

The company benefited from a secular tailwind that most SPACs could only dream of. State-by-state sports betting legalization created a massive new market, and DraftKings' existing brand from daily fantasy sports gave it a head start over many competitors. CEO Jason Robins proved to be a skilled operator, not just a promoter.

DraftKings spent aggressively on customer acquisition, marketing, and technology, burning billions in the race to establish market position alongside rival FanDuel. The strategy was expensive but worked — DraftKings became the #2 US online sportsbook, trailing only FanDuel.

By 2024, the investment was paying off. Revenue exceeded $3.5 billion and the company achieved profitability. The stock, while well below its 2021 meme-era peak of $74, stabilized around $45 — still a 200%+ return from the SPAC merger price. DraftKings proved that SPACs could work when the underlying business was real and the market opportunity was genuine.