The business said it made the decision after further talks with Entain’s board.
Chief executive Jason Robins said his business was confident in its own technology and brand.
“After several discussions with Entain leadership, DraftKings has decided that it will not make a firm offer for Entain at this time,” Robins said. “Based on our vertically-integrated technology stack, best-in-class product and technology capabilities and leading brand, we are highly confident in our ability to maintain a leadership position and achieve our long-term growth plans in the rapidly growing North America market.”
The US-based operator had made two proposals to acquire Entain last month. The first, a £25.00 per share offer, comprising cash and stock, had been rejected by its board.
DraftKings had then returned with a new proposal of £28.00 per share on 19 September.
Based on the 585,591,361 Entain shares in issue as of 30 June 2021, this would value the business at £16.40bn (€19.23/$22.40bn).
Neither was considered a firm bid though, with DraftKings initially having until 19 October to submit such an offer. This deadline was then extended last week.
DraftKings said it may ultimately opt to make a bid again under certain conditions, such as a “material change of circumstances”.