DraftKings (DKNG) Extends Sports Betting Deal With MansionBet
DraftKings DKNG recently announced the renewal and extension of its partnership with MansionBet, the sports betting brand of Mansion Group.
Per the agreement, MansionBet will continue to use DraftKings’ B2B technology to power the operator’s sportsbook and casino platform. The deal will also provide MasionBet with a suite of managed services covering compliance, payments and anti-fraud protocols.
The deal is expected to enhance MansionBet’s customer offerings, including horse racing, which will now feature additional streaming coverage and Timeform content from both U.K. international tracks. It will leverage DraftKings’ suite of Application Programming Interface across its entire sportsbook.
Solid Partner Base to Drive Expansion
The partnership with MansionBet is the latest in the string of similar deals between DraftKings and various sports leagues and media companies.
Earlier this month, DraftKings signed a partnership deal with Turner Sports, a subsidiary of AT&T’s T WarnerMedia. The deal makes Draftkings an exclusive sportsbook and daily fantasy sports provider across Turner Sports and Bleacher Reports, excluding the National Basketball Association’s content.
DraftKings Inc. Price and Consensus
Additionally, the company entered into similar partnerships with sports icon Michael Jordan, the New York Giants, Chicago Cubs and Disney’s DIS ESPN.
Draftkings’ growing partner base is expected to expand its reach and drive customer engagement on its platform. These partnerships bode well with the company’s aim to gain brand exposure and secure market share in the U.S. sports betting market.
Markedly, DraftKings shares have surged nearly 259.8% in the year-to-date period compared with the S&P 500’s growth of 5.6%.
Coronavirus-Led Disruptions Continue
Although the U.S. unemployment rate has declined to 7.9 percent in September 2020, the jobless rate remained well above pre-pandemic levels due to staggering recovery from the COVID-19 shock, which indicates a cut-down in disposable income spent on sports betting.
Moreover, coronavirus-led cancellations of major sports leagues and sporting events are expected to prompt a decline in sports viewership, thereby negatively impacting the online wagering business of Draftkings, which currently has a Zacks Rank #4 (Sell).
Further, reports of new coronavirus infections in the National Football League and concerns about the continuation of the tournament full season comes as a setback to Draftkings plans to drive customer engagement in the sports betting space.
Notably, sports betting and online gambling companies like DraftKings and Penn National Gaming PENN stand to benefit from the accelerated betting on digital platforms like online poker, casino games and lottery.
However, pandemic-induced headwinds in sports are likely to hurt Draftkings near-term prospects.
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