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DraftKings' NFT Marketplace Might Be Its Smartest Move -- Here's Why

By Jose Najarro – Aug 12, 2021 at 10:30AM

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Tom Brady's NFTs sold out in minutes on Thursday.

On Aug. 10, 2021, DraftKings (DKNG -3.84%) opened up its online marketplace with the launch of numerous Tom Brady non-fungible tokens (NFT). In today's video, I share how this marketplace can increase DraftKings user growth. Here are some highlights from the video:

  1. DraftKings Marketplace allows users to buy and sell digital collectibles. DraftKings is expected to create digital collectibles across sports, entertainment, and culture markets, bringing a wide range of users to its platform. The marketplace is straightforward to use, even for those with little knowledge of digital collectibles. 
  2. To be able to use the DraftKings marketplace, the user must have a DraftKings account. Now DraftKings will be able to cross-sell the user on other services like its online casino and sports betting since the account purchasing power is connected. 
  3. DraftKings continues to expand its user base through acquisitions. On Aug. 9 DraftKings entered an agreement to acquire Golden Nugget Online Gaming (GNOG). DraftKings also recently acquired Scarcity Labs. Scarcity Labs is a small Canada-based company focused on blockchain technology that DraftKings will use to support its marketplace advancement. 

Click the video below for my full thoughts and analysis. 

*Stock prices used were the after-hour prices of August 11, 2021. The video was published on August 11, 2021.

 

Jose Najarro owns shares of DraftKings Inc. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Jose is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

Stocks Mentioned

DraftKings Inc. Stock Quote
DraftKings Inc.
DKNG
$14.26 (-3.84%) $0.57
Golden Nugget Online Gaming Stock Quote
Golden Nugget Online Gaming
GNOG

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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