Sports betting company DraftKings (NASDAQ:DKNG) is positioning itself for the National Football League season, aligning with Genius Sports in a multiyear agreement over data.
The deal provides DraftKings with exclusive sportsbook data around the NFL, as Genius Sports is the official rights holder of the information. Th companies said Wednesday that DraftKings will get access to Genius’ live video feeds from over 170,000 sporting events per year and fan retention services like marketing tech to lure customers.
This software allows DraftKings to buy advertisement space at key moments of live sporting events; hence, lure customers. Terms of the deal were not disclosed.
DraftKings Chief Business Officer Ezra Kucharz called the partnership "mutually beneficial," adding in a statement that aligning with Genius will allow the company to "expand on the capabilities of our products and provide new and exciting features for our customers like single-game parlays."
DraftKings reported $312 million in revenue in its first-quarter earnings report. The company also raised its fiscal year 2021 revenue guidance to a range of $1.05 billion to $1.15 billion from $900 million to $1 billion.
In April, DraftKings joined Caesars and FanDuel in an NFL sportsbook partnership. The agreement allows the sports betting firms to use NFL intellectual property and its trademarks for betting promotions. The companies will also operate in a content-sharing model with the NFL. For example, the betting sites will be allowed to leverage material such as NFL highlights and Next Gen Stats data, which will help set betting lines.
That’s why the companies need to do business with Genius.
DKNG shares acquired 57 cents, or 1.2%, to $49.24.
