DraftKings Stock Soars to Record High After Exclusive Content Deal With ESPN

DraftKings saw a huge bump in its stock price on Monday following its exclusive content and marketing deal with ESPN, which was announced Monday morning. The sports gambling company saw shares of its stock price soar as high as 12% in mid-day trading on the NASDAQ, reaching a new record of $46.95 a share, though it has since come down slightly. DraftKings will be able to integrate its products across ESPN’s digital platforms and will provide dedicated segments for future EPSN studio shows, beginning with a daily fantasy sports promotion. DraftKings will also become ESPN’s exclusive daily fantasy sports and co-exclusive sportsbook link-out provider. “We are 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,” said Jason Robins, Co-Founder, Chairman and Chief Executive Officer of DraftKings. “ESPN’s reach amongst sports fans is unparalleled, and the start of NFL is the perfect time for DraftKings to be launching this integration.” Sports betting has exploded since the May 2018 decision by the U.S. Supreme Court to reverse a federal ban on sports gambling, portending to a future that sees gambling legalized across most, if not all, of the 50 states. Since this landmark decision, media companies such as ESPN and Fox — which launched its own gambling platform, Fox Bet last year — and pro leagues including the NBA and NHL have signed agreements with betting houses like Caesars  and MGM. ESPN also signed a new agreement with Caesars on Monday, that makes the Caesars Sportsbook by William Hill a sponsor of ESPN’s Fantasy products, and continues its relationship as ESPN’s exclusive odds provider. The news follows the recent launch of ESPN’s Las Vegas studio at The LINQ Hotel + Experience and its expanded content collaboration. “Our new agreements with Caesars and DraftKings collectively represent the next significant milestone for ESPN to diversify our exposure and deepen our commitment in the sports betting space,” said Mike Morrison, Vice President of Business Development & Innovation, ESPN. “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.”