Sports

DraftKings extends deal with PGA Tour to become official betting operator

Key Points
  • DraftKings' extension with PGA Tour gives the company rights to use PGA Tour trademarks and will have advertising options on PGA Tour platforms.
The entrance from the elevators, designed to resemble a tunnel entering a stadium, is pictured at the new DraftKings office in Boston on March 25, 2019.
David L. Ryan | The Boston Globe via Getty Images

DraftKings is enhancing its sports sponsorship portfolio as leagues continue to resume operations suspended due to Covid-19.

The betting company announced it secured a deal with the PGA Tour that assigns DraftKings as the organization's "first betting operator." The agreement is an extension of DraftKings' "content and marketing relationship" with the PGA Tour established last July. That deal also allows DraftKings to offer fantasy golf content.

Financial terms of the agreement were not made available.

"The PGA Tour couldn't be more pleased with growing our collaboration with DraftKings," said Norb Gambuzza, PGA Tour senior vice president of media and gaming, in a statement.

"The expansion of the relationship to now include sports betting is a natural evolution and one which fully supports and promotes the PGA TOUR's objectives of reaching and engaging new segments of fans while introducing them to our players, tournaments and media platforms."

PGA TOUR flag during the first round of the Korn Ferry Tour's The Bahamas Great Exuma Classic at Sandals Emerald Bay golf course on January 12, 2020 in Great Exuma, Bahamas.
Ben Jared | PGA TOUR via Getty Images

As part of the agreement, DraftKings will have the right to use PGA Tour trademarks and will get advertising options on Tour platforms. The company will also create "content and video rights allowing DraftKings' Sportsbook solution to create pre-game and post-game betting programming, as well as distribution of highlights to users who have placed bets," the company said.

"Golf has been an especially important outlet for fan engagement over these past few months, and this latest collaboration is a significant next step for both the golf and gaming industries," said Ezra Kucharz, Chief Business Officer of DraftKings, in a statement.

DraftKings, which went public on the Nasdaq in April, also agreed to a betting sponsorship with the National Basketball Association last November. In February, the company announced partnerships with three NBA franchises, including the Philadelphia 76ers and Indiana Pacers.

On Monday, shares of DraftKings closed down 6.48% after the Major League Baseball postponed two games due to the Covid-19 pandemic.

The PGA Tour returned to play on June 11 for the Charles Schwab Challenge in Texas after suspending play due to the pandemic. The Tour will hold its WGC-FedEx St. Jude Invitational at TPC Southwind golf club in Memphis this weekend.

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