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Why DraftKings Stock Jumped Today

By Joe Tenebruso – Updated Sep 16, 2020 at 4:05PM

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A major new partnership promises to help fuel the sports-betting platform's growth.

What happened

Shares of DraftKings (DKNG 3.65%) climbed 5.9% on Wednesday after the company announced an exclusive deal with the New York Giants. 

So what 

DraftKings will be the official sports betting and daily fantasy operator of the Giants, one of the National Football League's premier franchises. DraftKings will be able to use the team's logos on its betting and fantasy sports platforms. Additionally, its brand will be prominently displayed across MetLife Stadium during the team's home games, and DraftKings will be recognized as a sponsor across the Giants' media sites.

Lights are shining on a football field.

DraftKings' stock rose on news of its partnership with the NFL's New York Giants. Image source: Getty Images.

"DraftKings is the pre-eminent leader in sports betting and daily fantasy sports, and we are excited to be the first NFL team to have an exclusive integrated deal in this category," Giants chief commercial officer Pete Guelli said in a press release.

Now what 

DraftKings has been active on the partnership front in recent weeks. The deal with the Giants follows a similar agreement with Major League Baseball's Chicago Cubs, which DraftKings entered into earlier in September. And just days ago, DraftKings reached a deal to become ESPN's exclusive daily fantasy sports provider. 

DraftKings' dealmaking is helping to position it as a leader in an online gambling market that could surpass $160 billion by 2026, according to research and consulting company Global Market Insights. 

Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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DraftKings Inc. Stock Quote
DraftKings Inc.
$15.88 (3.65%) $0.56

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