Markets

DraftKings Expands Its International Strategy With a South African Partnership

Online sports betting company DraftKings (NASDAQ: DKNG) announced on Thursday that it has inked a deal with a South African gambling and resort company, Peermont Hotels, Gaming, and Resorts, to bring its sportsbook technology to that country. The PalaceBet sportsbook is a cooperative effort between the two companies that can be used via a website or through mobile device apps.

The heavy digital lifting is apparently being done by DraftKings' technology. Iain Gutteridge, general manager of PalaceBet, said that because Peermont is "looking to grow and to compete on an international scale, we knew that DraftKings could offer the software solution." For its part, Peermont brings a local casino presence and high visibility in the South African gambling market to the partnership.

A group of male sports enthusiasts watching a game.

Image source: Getty Images.

The expansion is part of DraftKings' international strategy, which has seen its service offered in eight countries, including Ireland and Austria, over the past few years. According to Statista figures, sports betting in South Africa had reached $460 million annually by 2019. Reporting by Slotegrator and research by the South Africa National Gambling Board indicate approximately half of all South African adults are regular sports bettors, with rugby, cricket, football, and golf being the primary targets for wagering. DraftKings' press release says it will also make tennis and basketball betting available to South African gamblers.

DraftKings has been forging alliances with sports networks, celebrities, and physical casinos as part of its ongoing strategy of expansion. But its stock remains volatile and highly sensitive to sports-related news, such as recent coronavirus outbreaks on various sports teams.

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