Shares of sports betting company DraftKings (NASDAQ:DKNG) were up as much as 6.7% in trading Wednesday after announcing it's the official partner of the upcoming Mike Tyson versus Roy Jones Jr. fight. Shares of the stock were up 4.8% at 3:40 p.m. EDT.
The fight on Nov. 28, 2020 is the latest in a string of key partnerships for DraftKings as the company attempts to build scale in its sports-betting business. And the boxing business is another high-potential market that could be turning to online gambling locations because it's harder to visit physical gambling locations due to COVID-19.
This one partnership is a one-time event. Given how few locations there are where DraftKings can legally take sports bets, the revenue impact will be minimal. But the hope is that even users who aren't in regions where online sports betting is legal will start to be engaged with the platform.
I would chalk up today's news as business as usual for DraftKings. The company continues to grow its presence in the online sports-gambling market and gathers these important partnerships with teams and events. This is definitely priced as a growth stock at the current $19.7 billion valuation, but if the market picks up, it could be worth the price.