The folks over at DraftKings (NASDAQ: DKNG) sure do love a sponsorship deal, and on that subject — DraftKings’ has just added its latest addition, the famed eSports and content creator group, FaZe Clan.
The “what” Clan?
FaZe Clan! If you’re from my generation or have a gaming background, you’ll remember this company for making ‘quick scoping’ videos for ‘Call of Duty: Modern Warfare 2’ on YouTube back in the day. What a game, by the way.
No..? Just me?
For anyone who has no idea what I’ve just said, FaZe Clan came from humble beginnings as content creators, specializing in online gaming. From there, the group amassed a fanbase of 350 million, including 115 million subscribers on YouTube, 33 million subscribers on Twitch, and over 60 million followers on Twitter.
It also boasts over 80 members, not just exclusive to gamers, but up-and-coming sports stars such as LeBron James Jr (it is his son, in case you were about to Google it), and music talents like Lil Yachty, a rapper with 10 million of his own followers, who is also involved crypto and NFT space.
How does it affect DraftKings?
The deal makes a lot of sense for DraftKings. Not only will this bring greater brand recognition, but it also targets millennials and Gen Z, which according to Statista, makes up over 42% of the entire U.S. population. That connection in itself will be of benefit as it will attract new audiences to DraftKings’ sports-centered NFT platform, along with building brand awareness for its other sports-betting, iGaming, and Fantasy leagues segments as well.
With DraftKings shares down 18% year-to-date, this could be the marketing boost the company needs to make it the premier provider of sports betting, gaming, and new-age collectibles.
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Financial Writer at MyWallSt
David's favorite stock is Google. He's a daily user of its YouTube platform, where you can learn or find something brand new at the touch of a button. He believes the company will continue to grow for many years to come.