It's been an upbeat week for the stock market, and Friday brought more gains to some parts of the market. As of 1:45 p.m. EDT, the Dow Jones Industrial Average (^DJI 0.12%) and S&P 500 (^GSPC 0.52%) were once again at record levels. The Dow picked up 96 points to 34,132, while the S&P climbed 8 points to 4,179. The Nasdaq Composite (^IXIC 0.90%), meanwhile, eased lower with a 15-point drop to 14,024.
It's the offseason for the NFL, but that didn't stop the sports giant from entering into big agreements with some major players in the gambling industry. Deals with sports betting companies could go a long way toward further legitimizing a fast-growing sector as a long-term investment opportunity. Below, we'll look at three winners from the NFL's latest round of deal-making.
Coronation day for DraftKings
Shares of DraftKings (DKNG 2.34%) rose 1% following the news late Thursday. In addition to becoming an official sports betting partner for the NFL, DraftKings will retain the exclusive status of being the league's only official daily fantasy partner.
The new status as official sports betting partner will allow DraftKings to get access to key NFL media properties. That includes integrating sports-betting content into the NFL app and website, in addition to the NFL's official league data feed. DraftKings will also gain rights to use highlights, footage, and other valuable content in its own interactions with customers.
CEO Jason Robins is upbeat about the move, saying that he thinks "this agreement will lead to new innovations that will ultimately enhance the product both on the field and on the screen." The move comes on the heels of DraftKings putting an on-site sportsbook at a PGA golf event.
Et tu, Caesars
Caesars Entertainment (CZR 4.90%) didn't see its stock make a big move despite getting a similar nod from the NFL. The Nevada-based company will be the only casino resort among the three companies getting official sports betting partner status.
Caesars was already the NFL's first-ever casino sponsor, so it made sense for the NFL to turn to Caesars when it came time to deepen its relationship with the casino resort industry. Caesars will be able to use NFL trademarks and intellectual property in its live sportsbook and online sports betting, and it plans to offer NFL-themed free-to-play games as part of the partnership.
Caesars already has extensive relationships inside the sport. In addition to its NFL deal, the casino has relationships with seven different pro football teams across the country, as well as with Walt Disney's ESPN. The company sees plenty of upside from the arrangement going forward.
Finally, Flutter Entertainment (PDYP.Y) picked up more than 3% Friday. The company's FanDuel subsidiary was the final of the NFL's three exclusive official sports betting partners named late Thursday.
FanDuel is a new partner for the NFL, and it'll have the same rights to use content as DraftKings and Caesars. FanDuel CEO Matt King said he's excited by the prospects of "pairing America's #1 sportsbook with America's #1 sports league."
Neither the NFL nor any of the three companies involved released financial details of the agreements. However, some reports suggested that the five-year agreements could end up being worth nearly $1 billion if the NFL decides not to exercise its right to terminate them early.
Sports is big business, and having exposure with the NFL is a mark of distinction for all three of these companies. As long as people like football, having a relationship with its most important league offers lucrative opportunities.