Markets

DraftKings Sees 17 Pct Surge In Shares After ESPN Deal

sports gaming

DraftKings shares rose by 17 percent following the sports gaming company's new agreement with ESPN on Monday (Sept. 14), CNBC reports.

The agreement says DraftKings will be the sole provider of daily fantasy sports, with a co-exclusive partnership for gambling link-outs from ESPN.

In addition, DraftKings content will be integrated with ESPN's digital offerings and studio shows.

There was also another agreement made with Caesars Entertainment to be the sole provider of odds and co-exclusive link-out provider alongside DraftKings, according to the news outlet.

ESPN Vice President of Business Development and Innovation Mike Morrison said the agreements showed the company's commitment to making things more diverse and getting further into the sports betting arena.

"We began growing the experience through content, followed by odds utilizing William Hill’s sports betting data and a new state-of-the-art studio facility in Las Vegas through our deal with Caesars, and now with the addition of DraftKings, we are bringing together the sports media leader with two of the top brands and best products in the segment," he said, according to the release.

DraftKings Co-Founder, Chairman and Chief Executive Officer Jason Robins said the company was "very excited to be expanding our relationship with ESPN to include deeper integration of both our sports betting and daily fantasy sports offerings across their platforms."

"ESPN’s reach amongst sports fans is unparalleled, and the start of NFL is the perfect time for DraftKings to be launching this integration," he said, according to the release.

Before the news, DraftKings' shares were slightly depressed for the season, but the company has overall been on the up-and-up, surging 170 percent in shares since going public through a merger earlier this year.

With live sports on the back burner for now due to COVID-19, PYMNTS spoke with DraftKings Director of Sports Product Dan Hannigan-Daley, who said fantasy sports have been a good release for people missing a favorite pastime of theirs during the pandemic.

He said the company was "very mindful" that fantasy sports could take on a new importance the longer regular live sports are out of action.

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