FanDuel reports major decline
Gaming investors are worried about the latest announcement by FanDuel, which revealed a US$186 million decline.
US.- FanDuel has recently reported the loss of US$186 million, generating international debates among industry’s experts. As revealed by local authorities, the national auditors have received the news with big concern, as the daily fantasy sports company, which is highly renowned at global level, could have entered a path of no return.
“This alarmed auditors from Deloitte as they believe that the company may not be able to fully bridge the potential gap with only US$19.5 million of cash on the balance sheet,” explains the report. After the US Federal Trade Commission (FTC) blocked its merger with rival DraftKings, FanDuel will need its investors to inject more funds into the company. One of the two biggest Daily Fantasy Sports (DFS) operators was betting on the merger to help its operation, whose accounts for the period to December 31, 2015 are behind schedule.
As revealed last month, the funding would add up to the US$350 million investors have supplied the company since its foundation in 2009. Shamrock and Scottish private equity group, Pentech, KKR and Scottish Enterprise are some of FanDuel’s capitalists who might have to put more money into it, even if the company looks for new potential ones.
