DraftKings, New York Giants agree for exclusive sports betting deal

The online betting company announced on Wednesday that DraftKings had secured another sports partnership, agreeing to an exclusive agreement with the New York Giants.

The agreement makes DraftKings, the company’s official sports betting and daily fantasy sports partner, allow the company to access the team’s trademarks and logos as it looks to continue building its brand on the gambling front.

Financial terms of the agreement were not provided.

In an interview with CNBC on Tuesday, DraftKings Chief Business Officer Ezra Kucharz described the deal as a “multipurpose relationship”. The company will also have exclusive digital gaming rights and access to the team’s virtual sports lounge at MetLife Stadium on game days, as fans are allowed to return to the stadium once.

“It’s all about the products,” Kucharaj said. “We’re a sports fan, and trying to sportsbooks and service [daily fantasy sports] Are important to us, and we are going to create many fun opportunities for fans. ”

DraftKings will also get brand exposure from the agreement. The company said it is “achieving premiere brand integration at MetLife Stadium during the Giants Radio Game” in addition to an appearance “across all team-controlled media including television radio and digital and social.”

“It’s about fan engagement and what is the right thing to do for a person who unfortunately can’t go to the stadium right now and should be at home, but wants to be there,” Kucharz said.

This is DraftKings latest move to secure greater market share on the sports gaming front. The company’s shares rose on Monday, as it announced a deal with ESPN that would integrate DraftKings content with the Disney-owned network.

DraftKings announced an equity deal with sports icon Michael Jordan and secured its first Major League Baseball partnership with the Chicago Cubs on Septon 3.

The company has daily fantasy sports agreements with the NFL’s Dallas Cowboys and New England Patriots (team owners Robert Kraft and Jerry Jones are equity partners in DraftKings).

DraftKings also has daily fantasy sports and sportsbook deals with three National Basketball Association teams. Another industry source said CNBC is working with another Detroit Pistons.

New York Giants ‘Chief Commercial Officer Pete Guelli (left) painted with DraftKings’ chief business officer, Ezra Kucharaj.

Source: NY Giants

“Our enhanced agreement with DraftKings provides innovative opportunities to deliver a superior range of experience,” Giants Chief Commercial Officer Pete Guilli said in a statement. “DraftKings is the premier leader in sports betting and daily fantasy sports, and we are excited to be the first NFL team to hold an exclusive integrated deal in the category.”

“We try to partner with the best organizations in sports,” Kucharaj said. “We will continue to find partnerships that are very good for us.”

Dan Aetna, co-president of Feinstein, a New York sports law firm, Herrick, described the game as “great for fans wanting the sport to put DraftKings above the competition or at least create some sort of mental name recognition or association”.

“They are looking for a way to differentiate themselves and become Nike [of sports gambling] – So when you think about sports betting, it’s DraftKings, “said Etna, with clients including the Cubs, New York Yankees and Brooklyn Nets.

He added, “DraftKings has another twist on what it has done in the past. Raising awareness of the brand and making it the brand you think of when you want to wager.”

The digital gaming component may be necessary for DraftKings as statutory game wagering spreads across the country for states seeking added tax revenue. According to research firm Global Market Insights, the online gambling market is projected to reach $ 160 billion by 2026.

In addition, the emergence in the micro betting market can boost the sporting potential. This is an area where DraftKings contestant Fan Dwa has already started testing the waters.

“If it catches on, it’s going to further increase the value of these companies,” Aetna said.

“I think the industry will see a boom.” “Since when is it going to end? I haven’t done the math, but I’d still say it’s a growth industry.”

Disclosure: CNBC parents are investors in Comcast and NBC sports FanDuel.


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