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DraftKings Stock Isn't Slowing Down

Published 10/16/2020, 07:29 AM
Updated 07/09/2023, 06:31 AM
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DraftKings (NASDAQ:DKNG) has been one of the hottest stocks this year since it went public via a merger with a SPAC in April. Despite sports mostly halted as a result of the coronavirus, investors have still found reason to bet on the sports betting giant.

DraftKings announced yesterday it struck a multi-year agreement with Turner Sports to become the exclusive sportsbook and daily fantasy sports provider to select Turner Sports and Bleacher Report properties, excluding NBA programming as Turner Sports has a deal with rival FanDuel for NBA content.

Sports betting lines and daily fantasy content from DraftKings will appear on Turner Sports telecasts as well as Bleacher Report digital channels and the B/R app. The partnership is a big win as Turner Sports' television coverage includes Major League Baseball, ELEAGUE and the March Madness tournament, which is one of the largest sporting events of the year.

"Regulated betting is quickly becoming a fixture of modern sports entertainment, and this collaboration with Turner Sports further scales the reach of our products and content to engage fans," DraftKings Chief Business Officer Ezra Kucharz said. "Turner Sports platforms provide exceptional content as they continually captivate sports audiences."

DraftKings Inc Stock Chart

The deal with Turner Sports is just the latest in a string of deals DraftKings has signed recently to expand its reach.

Last month DraftKings announced Michael Jordan would join the company as a special advisor to the board of directors and take an equity interest in the company. Jordan will provide DraftKings with guidance and strategic advice on key business initiatives.

"Michael Jordan is among the most important figures in sports and culture, who forever redefined the modern athlete and entrepreneur," DraftKings co-founder and CEO Jason Robins said. "The strategic counsel and business acumen Michael brings to our board is invaluable, and I am excited to have him join our team."

Besides the Turner Sports partnership and Jordan announcement, DraftKings also recently announced a multi-year deal with ESPN to become a co-exclusive sportsbook link-out provider and exclusive daily fantasy sports provider. The deal means links on ESPN will now redirect to DraftKings' products and services.

DraftKings is also increasingly striking deals with individual sports franchises. Since the beginning of September, DraftKings has struck agreements to become the Official Sports Betting Partner of the Philadelphia Eagles, New York Giants and Chicago Cubs.

Just as investors are pouring money into shares of DraftKings, it also appears bettors are rushing to place bets in droves as professional sports leagues have resumed play in recent months.

Sports reporter Darren Rovell tweeted yesterday that New Jersey set a new record in September after taking in $748.5 million in sports bets, a jump of 68% from last September's then record $445 million.

Maybe Mark Walker, Senior Vice President of Business Development & Innovation at ESPN said it best, when he said "Sports betting is quickly becoming endemic to the overall experience of the sports fan."

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