If you weren’t familiar with DraftKings already, it’s essentially a daily fantasy sports contest and betting platform that allows you to build your own fantasy team and compete to win real money. The sports community resoundingly accepted this platform due to the challenge that many people face finding a place to play fantasy sports for money.
Although certain sports sites offer their own fantasy sports platform, DraftKings has emerged as a premier site with a user-friendly platform that casual and professional players can enjoy.
DraftKings is No Stranger to Partnerships
Now, there have been others like DraftKings that have fallen to the wayside, but the reason why DraftKings has stuck around is its large fanbase and the deals they’ve worked out with major media outlets. DraftKings not only has sports bettors excited, but the stock market is also loving DraftKings after closing a deal with ESPN.
The DraftKings stock has skyrocketed since the return of sports, the reason being due to COVID-19, there are strict restrictions on casinos and sportsbooks, forcing people to bet online.
The new deal with ESPN states that ESPN will promote DraftKings online sports betting on its affiliated sites. This “free” publicity has not only bolstered the already large DraftKings community but also has boosted its stock price due to this ESPN endorsement.
That isn’t the only impact this deal with ESPN has had on DraftKings, however. Prominent billionaires have stepped up and bought big on DraftKings, grabbing equity stakes in the online betting platform. Some names you might recognize are Patriots President Robert Kraft, Dallas Cowboys President Jerry Jones, and even Charlotte Hornets Michael Jordan.
The interesting note about Michael Jordan’s purchase is that not only is it the most recent equity disclosure, and he also was named a special advisor on the board of directors for DraftKings. This news shook the betting world because Jordan was able to propel Nike and Gatorade into multi-billion dollar brands.
This co-signing by Michael Jordan has turned DraftKings into a premier online betting site, possibly surpassing FanDuel, who has always been a rival. With the backing of well-known billionaires in the sports world, DraftKings is in a prime position to monopolize the sports betting market.
DraftKings Gaining More of the Market
Another way they’ve cornered the market on sports betting is that included in the ESPN deal is that ESPN will now allow DraftKings to become the exclusive provider of fantasy sports.
This cohesive agreement between two juggernauts has put DraftKings on the fast-track for a sports betting takeover. With DraftKings now having access to ESPN’s vast marketing catalog, it’s clear that many other online betting platforms will become irrelevant very soon.
DraftKings still has some hurdles to overcome even with this blockbuster deal. The United States still has some anti-sports betting laws in place that pose a risk to the online platform.
These betting laws have stopped the growth of multiple platforms, and if DraftKings can’t find a way to circumvent them, they could potentially meet the same fate. The good news is with the financial backing from investors and resources from ESPN, DraftKings should be able to find a way to tolerate the laws for now.
This deal not only affects the betting world, but will likely change the way people bet online. It also had a significant effect on the stock market, which you don’t often see from the online sports betting community.
Even with the hurdles that DraftKings will have to overcome, you have to think there is a bigger plan at work with their new special advisor Michael Jordan, who is notorious for boosting a company’s popularity. Look for DraftKings to capitalize on this deal and corner the sports betting market in the next few months.