DraftKings, New York Giants agree to exclusive sports betting deal

Key Points
  • The agreement includes DraftKings operating a sportsbook, online wagers and a virtual sports lounge for the NFL team.
  • DraftKings also has agreements with the Dallas Cowboys and New England Patriots. 

In this article

Source: NY Giants

DraftKings has secured another sports partnership, agreeing to an exclusive deal with the New York Giants, the online betting company announced Wednesday.

The agreement makes DraftKings the Giants' official sports betting and daily fantasy sports partner, allowing the company to access team trademarks and logos as it looks to continue building its brand on the gambling front.

Financial terms of the agreement were not provided.

In an interview with CNBC on Tuesday, DraftKings' Chief Business Officer Ezra Kucharz described the deal as a "multisegment relationship." The company will also have exclusive digital gaming rights and access to the team's virtual sports lounge at MetLife Stadium on game days once fans are allowed back in stadiums.

"It's about all the products," Kucharz said. "We're trying to service the sports fan, and the sportsbook and [daily fantasy sports] are important to us, and we're going to create a lot of opportunities for fans to have fun."

DraftKings will also receive increase brand exposure from the agreement. The company said it is obtaining "premier brand integration across MetLife Stadium during Giants home games" in addition to a presence "across all team-controlled media including television radio and digital and social."

"This is about fan engagement and doing what's right for the person that unfortunately can't get into a stadium right now and has to be at home but wants to be there," Kucharz said.

It's DraftKings' latest move to secure more market share on the sports gambling front. Shares of the company rose Monday after it announced a deal with ESPN that will see DraftKings content integrated with the Disney-owned network.

DraftKings also announced an equity deal with sports icon Michael Jordan and secured its first Major League Baseball partnership with the Chicago Cubs on Sept. 3.

The company also has daily fantasy sports agreements with the NFL's Dallas Cowboys and New England Patriots (team owners Robert Craft and Jerry Jones are equity partners in DraftKings).

DraftKings also has daily fantasy sports and sportsbook deals with three National Basketball Association teams. An industry source told CNBC another agreement is in the works with the Detroit Pistons.

New York Giants Chief Commercial Officer Pete Guelli (left) pictured with DraftKings Chief Business Officer, Ezra Kucharz.
Source: NY Giants

"Our enhanced agreement with DraftKings provides innovative opportunities as we look to deliver a best-in-class fan experience," Giants Chief Commercial Officer Pete Guelli said in a statement. "DraftKings is the preeminent 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."

"We try to partner with the best organizations in sports," Kucharz said. "We're going to continue to find those partnerships that are great for us."

Dan Etna, co-chair of New York sports law firm Herrick, Feinstein, described the deals as "brilliant for DraftKings to put them above the competition or at least create some sort of mental name recognition or association" for fans seeking sports wagers.

"They're looking for a way to distinguish themselves and become the Nike [of sports gambling] – so when you think of sports betting, it's DraftKings," said Etna, who clients include the Cubs, New York Yankees and Brooklyn Nets.

"This is another twist of what DraftKings has done in the past; increase the awareness of the brand and make it the brand that you think of when you want to place a bet," he said.

The digital gaming component could be essential for DraftKings as legalized sports wagering spreads across the nation for states looking for added tax revenue. According to research firm Global Market Insights, the online gambling market is projected to reach $160 billion by 2026.

Also, the emergence of micro betting market could fuel sports wagers. It's an area where DraftKings competitor Fan Duel has already started to test the waters.

"If that catches on, it's just going to further increase the value of these companies," Etna said.

"I think the industry will continue to see an uptick," Etna added. "When is it going to flatten out? I haven't done the math, but I would still say this is a growth industry."

 Disclosure: CNBC parent Comcast and NBC Sports are investors in FanDuel.

What Michael Jordan joining DraftKings means for Nike and the NBA
What Michael Jordan joining DraftKings means for Nike and the NBA