Kenneth Dart has made another major move in the gambling sector, acquiring a significant stake in US sports betting giant DraftKings through his Candle Lake investment vehicle.
An SEC filing released on 14 August confirmed that Dart, via Candle Lake Investment, acquired 28,581,386 shares in DraftKings, representing 5.8% of the company’s total stock.
Under SEC regulations, an initial Schedule 13G filing is required whenever an investor crosses the 5% ownership threshold in a publicly listed company.
It remains unclear exactly when Dart first began purchasing DraftKings shares ahead of triggering the mandatory disclosure requirement.
DraftKings’ share price has fallen more than 46% over the past year, weighed down by growing competition from prediction markets and disappointing financial results.
The stock now sits at just over $24 per share, placing the total value of Dart’s DraftKings position at approximately $691 million.
Despite the weak price performance, analyst sentiment toward DraftKings remains broadly positive, with TipRanks reporting that 22 of 25 analysts rate the stock as a “Buy” and the remaining three as a “Hold.”
The most recent analyst note came from Benchmark Company’s Mike Hickey, who assigned a target price of $30 to DraftKings shares.
Dart’s expanding gambling portfolio also includes roughly 30% stakes in both Flutter Entertainment and Evolution, along with a 0.6% holding in Hacksaw Gaming.
His Flutter bet has proven costly so far, with the Irish Independent reporting that the value of his stake has fallen $4.2 billion from his initial investment of $7.62 billion.
Flutter’s share price has declined more than 57% since January, as the company navigates a challenging period of transition within the US gambling market.
FanDuel CEO Amy Howe was replaced in May after the company expressed disappointment over the platform’s lack of growth, with further leadership changes announced alongside Flutter’s Q2 results.
With his new DraftKings position, Dart now holds interests in the two largest sportsbooks operating in the United States, FanDuel and DraftKings.
Earlier this month, Candle Lake was also forced to submit a formal takeover bid for Evolution, valuing the iGaming supplier at approximately SEK 131.7 billion, or around £10.2 billion, after its stake crossed the 30% threshold.
Dart and Candle Lake made their limited appetite for full control clear, offering the minimum permissible price of SEK 695 per share, roughly £54, signalling that a complete Evolution acquisition is not part of their strategic plan.
