DraftKings (NASDAQ: DKNG) shares skyrocketed on Wednesday after the online sports gambling firm announced that it has agreed to partner with the U.S. National Hockey League (NHL).
DraftKings and NHL team up
Speaking on the exciting news, DraftKings stated that it will become:
“An official sports betting, daily fantasy sports and igaming partner of the league in the U.S.”
The firm added:
“To complement the deal, DraftKings has also reached an agreement with AT&T’s T Turner Sports, including Bleacher Report, to be the exclusive sportsbook and daily fantasy sports provider for their coverage of the NHL.”
The final NHL Stanley Cup game on NBC attracted 3.6 million viewers this year. By landing this deal, DraftKings has therefore been given the opportunity to market its products to a very wide audience.
Is DraftKings stock a buy?
DraftKings stock soared almost 2% after the announcement, which is a nice boost considering shares have fallen over 15% in the last month. Driving bearish sentiment over the stock has been valuation concerns. Another hindrance to its share price has been the recent market volatility Wall Street has suffered. As shareholders worry about rising inflation and an uncertain economic climate, growth companies like DraftKings have been hit hard.
With DraftKing partnering with huge sports organizations like the NHL, the possibilities are endless for the stock. The move proves that the company is well respected in the sports industry and suggests that more lucrative deals could be in the pipeline for DraftKings.
To keep on-trend, and win another revenue stream, DraftKings also recently got into the NFT game. Back in July, the company launched a marketplace with Autograph, a new NFT startup co-founded by NFL quarterback Tom Brady. The platform, aimed at collecting sports and entertainment-themed digital collectibles, presents another lucrative opportunity for DraftKings by funneling their existing audience into the new vertical. With competing marketplace Dapper Labs already dominating the NBA and other sports leagues’ NFT space, DraftKings is hoping to become the hub for sports personality collectibles.
This recent news only adds to bullish sentiment for long-term DraftKings investors. If it keeps winning these deals, there’s no stopping the gambling company.
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Financial Writer at MyWallSt
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