Fantasy sports site DraftKings is looking to raise new funding at a $2 billion valuation

Stephen Savoia/AP

DraftKings is trying to raise another round of funding.

• Fantasy sports site DraftKings is looking to raise hundreds of millions of dollars in a new funding round that could value the company at as much as $2 billion, people familiar with the matter told Business Insider.
• DraftKings is trying to push into the newly opened live sports betting space, which was cracked open last year after the Supreme Court overturned a federal ban on sports betting outside of Nevada.
• The company is also eyeing an initial public offering at some point in the next few years, according to media reports.

Fantasy sports site DraftKings is raising hundreds of millions in fresh funds in a new round that could value the company at as much as $2 billion, two people familiar with the matter told Business Insider.

The exact amount of the round and timing could not be learned.

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"DraftKings operates as a privately held company and, as a matter of course, we do not publicly release financial information, including details on funding rounds," a DraftKings spokesman told Business Insider.

DraftKing has already raised nearly $1 billion in funding with existing investors including the Raine Group, The Madison Square Garden Company, Todd Boehly's Eldridge Industries, venture firm Accomplice, and Kraft Group, which owns the New England Patriots.

The potential fundraise comes as DraftKings is trying to capture share in the newly opened - and highly lucrative - live sports betting space. In May 2018, the Supreme Court overturned a federal ban on sports betting outside of Nevada and since then a number of states including New Jersey have legalized the practice.

DraftKings is also positioning itself for an initial public offering which could come in the next several years, CNBC has previously reported.