DraftKings Announces Major Partnerships Going Into The Holidays
Updated: Dec 30, 2020
Coming off of Saturday’s Tyson versus Jones Jr. fight, DKNG announces another major deal.
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Image Courtesy of Skysports | Tyson vs. Jones Jr.
DraftKings Inc (NASD:DKNG) announced yet another partnership today and it looks as if they are not backing down from their climb to the top of the sports betting arena.
The digital sports entertainment and gaming company has only made its way to the Nasdaq this past April, but that hasn’t stopped them from putting up some numbers with big plays from their headquarters in Boston.
“Today DKNG announced a new deal with the Detroit Pistons and will now be the exclusive Official Sports Betting and iGaming Partner of the NBA team.”
The deal has also secured their spot as the exclusive Official Daily Fantasy Sports Partner as well.
In light of the deal, DraftKings now has exclusive access to Pistons' trademarks and logos. So, fans at the Little Caesars Arena will soon experience the company at Pistons home games with the DraftKings-branded court-side LED signage and in-game basket pad branding.
But . . . that’s not the only presence DKNG will have in Detroit in the upcoming months.
The Kings’ Court Keeps Building
It’s easy to note that the Piston deal came about as DraftKings prepares to launch mobile sports betting and online gaming in the state of Michigan. Currently, licensure and regulatory approvals are pending.
Also, the news of this newest partnership comes only days after the company made leeway with the AI-driven music and social media experience app Triller as the “Official Sports Betting Partner” for this weekend’s match between former undisputed heavyweight world champion, Mike Tyson, and former four-division world champion, Roy Jones Jr.
As you can see, DraftKings has been making moves all over the place.
Despite the pandemic, DKNG hasn’t let up any efforts to build a presence. Aside from the Pistons and Triller partnership, this quarter the company made its way through the Cowen 48th Annual Technology, Media, and Telecom Conference as well as the SBC Summit, Bank of America 2020 Gaming and Lodging Conference, and was the keynote interview for Global Gaming Expo.
It looks like they are already shaping up for Q4.
Long Live The DraftKings
DraftKings has also unveiled several technology enhancements and new product features this quarter.
In particular, they launched a standalone casino app in Pennsylvania and West Virginia, offering a dynamic gaming experience and a complete product suite among other improvements.
The company also bound its mainstay by appointing two new Board members, Jocelyn Moore and Valerie Mosley.
The board also welcomed Hall-of-Fame basketball legend Michael Jordan as an investor and advisor. Jordan will have a key influence on brand strategy, product development, inclusion, equity and belonging, marketing activities, and other key initiatives.
DraftKings even made its way into the 2020 Masters and their official logo will be featured on professional golfer Bryson DeChambeau’s signature golf cap.
DKNG also announced a multi-year agreement with ESPN to collaborate in a variety of areas including becoming a co-exclusive sportsbook and fantasy sports link-out provider.
Watching the deals rack up is almost as exciting as betting on the games.
King or Bear?
Now it’s hard to say if DraftKings has the sticking power that they are working to cement, but it doesn’t look like they are going anywhere any time soon.
Earlier this month DKNG reported an increase of 98% for the third quarter of 2020. The reported revenue was $133 million compared to $67 million during the same period in 2019.
DraftKings is raising its fiscal year 2020 pro forma revenue guidance from a range of $500 to $540 million to a range of $540 to $560 million, which equates to year-over-year pro forma revenue growth of 25% to 30% in 2020.
Gearing up for 2021 with assumptions from the Company’s 2020 guidance, DraftKings has also planned to introduce revenue guidance of $750 million to $850 million, which equates to 45% year-over-year growth.
Also, DraftKings is now live with mobile sports betting in 10 states — with their latest launches in Illinois and West Virginia — and looks to be adding on more commercial and strategic agreements.
They are slated for multi-year expansions and extensions with the PGA TOUR, Chicago Cubs, New York Giants, and the Colorado Rockies.
I don’t want to be too hasty, but it seems like it may be time to double down on the SportsBook app.