The National Football League said Thursday DraftKings (DKNG), Caesars Entertainment (CZR) and Flutter Entertainment‘s (PDYPY) FanDuel will become official sports betting partners. DKNG stock rose.
The agreements mark the first time the NFL is partnering with bookmakers in the U.S.
Under the terms of the deal, the three partners will have the exclusive rights to put sports betting content on the NFL’s website and apps.
The deals are worth just under $1 billion in total and are for five years, a source told ESPN.
The NFL and DraftKings also said that DraftKings’ relationship as the NFL’s exclusive official daily fantasy partner will be extended.
“As the sports betting landscape has continued to evolve in the United States, we have been thoughtful with our strategy and are excited to announce three partners who share the NFL’s vision and goals,” said Renie Anderson, Chief Revenue Officer of NFL Partnerships, in the release. “Working closely with Caesars, DraftKings and FanDuel, we will provide fans new and different ways of interacting and engaging with the sport they love.”
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Sports Betting Growth Lifts DKNG Stock
Shares climbed 0.9% to close at 57.98 on the stock market today, off intraday highs of 59.98. DKNG stock has surged more than 60% since November, according to IBD MarketSmith chart analysis, as more states have legalized gambling via ballot initiatives or legislatures. Caesars shares added 0.5%, Flutter rose 2.9%.
Among other stocks involved in online betting, Penn National Gaming (PENN) dipped 0.8%, and MGM Resorts (MGM) picked up 1.4%.
The NFL had been against sports betting over fears it would harm its reputation. But the public has an increasingly positive view of digital betting and during the November election voters pushed for expanding its legalization.
On Jan. 5, New York Gov. Andrew Cuomo announced legislation to allow mobile sports gambling in the state. And on Jan. 22, Michigan launched online sports betting and casino games.
DraftKings has been expanding its partnerships with sports leagues. On March 4, DraftKings announced a deal with the UFC to be its official sportsbook and “daily fantasy partner” in the U.S. and Canada.
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