DraftKings (DKNG) today teamed up with Disney‘s (DIS) ESPN. The multiyear agreement lets the online sports betting company become a “co-exclusive” sportsbook link-out provider and exclusive daily fantasy sports provider of media giant Disney. DraftKings stock jumped.
Links across ESPN digital platforms will connect fans to DraftKings’ products and services.
“ESPN helped revolutionize the 24/7 sports news cycle and continues to be the go-to source for many fans today on the latest and largest sports stories,” said Jason Robins, co-founder, chairman and CEO of DraftKings.
“We look forward to this collaboration to exclusively showcase DraftKings’ daily fantasy content and offerings while also advancing further visibility and mainstream adoption of our regulated sports betting products.”
The deal allows Boston-based DraftKings, which also partners with the NFL, MLB, NBA and the PGA Tour, to integrate its products and offerings across ESPN’s digital platforms.
DraftKings Future ESPN Opportunities
DraftKings will also power existing and future ESPN studio shows with segments for promotion, beginning with daily fantasy sports.
“Sports betting is quickly becoming endemic to the overall experience of the sports fan,” said Mark Walker, ESPN’s senior vice president of business development and innovation. “To us, that means greater opportunities to innovate and deliver the best and most seamless experience for fans,” Walker said. He added that “will ultimately expand ESPN’s brand and audience and increase engagement. It is an industry that we will continue to actively pursue as it grows and evolves.”
ESPN will serve up DraftKings product links on its website via mobile and desktop, along with the ESPN Fantasy app.
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DraftKings Stock Breaks Out
Shares popped 17.3% to close at 48.62 on the stock market today in high volume. DraftKings stock cleared a 44.89 buy point from a cup base, and shot past the chase zone, which extends to 47.13. DraftKings has an industry-topping 99 Relative Strength Rating.
Among other gambling stocks, Penn National Gaming (PENN), which has a 98 RS rating, surged 10.7%. Caesars Entertainment (CZR), which signed a similar “co-exclusive” betting deal with ESPN, jumped about 10.5%.
The global online gambling market was already growing rapidly before the pandemic. It is expected to reach nearly $103 billion by 2025, an 11.5% increase from 2019, according to a recent report by Grand View Research.
Online gambling companies like DraftKings appear to be weathering the pandemic better than their brick-and-mortar rivals who have had to shut down casinos, according to PYMNTS.com research.
And as more and more states allow online gambling, the industry as a whole is set to grow further.
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