Playtech's Jason Ader makes case for takeover by DraftKings

In remarks to Bloomberg, on 14 October, the longtime casino-industry investor said he would propose just that if he were on the board of DraftKings, arguing that it would boost the company's profits while catapulting the market valuation of Playtech.

Ader holds just under 5% of Playtech stock and has good form in pursuing such transactions.

In 2016, he pushed for 888 Holdings to make a bid for Bwin.Party Digital Entertainment, where he was also a large shareholder.

The investor, also a co-founder of SpringOwl Asset Management, was also instrumental in the recent merger between Stars Group and Flutter Entertainment.

He reportedly noted that Playtech generated earnings before interest, taxes, depreciation and amortisation of €383m in 2019, yet its market capitalisation was under €2.0bn, versus about €12bn for DraftKings.

In 2018 he also came out in favour of Playtech shifting its strategy to focus solely on its core gaming business.

Also last Friday, DraftKings chief executive officer, Jason Robins, said his company might be open to dealmaking.

"There could be some opportunities that perhaps would not have otherwise presented themselves, but might, given the events in the last few months.