DraftKings works with Genius Sports for sports betting
New England Patriots cornerback Stephon Gilmore (24) stretches during the New England Patriots training session in Foxborough, MA on October 22, 2020.
Barry Chin | Boston Globe | Getty Images
The sports betting company DraftKings is positioning itself for the season of the National Football League and is coordinating data with Genius Sports in a multi-year agreement.
The deal provides DraftKings with exclusive sports betting data related to the NFL as Genius Sports is the official copyright holder of the information. The companies announced Wednesday that DraftKings will have access to Genius’ live video feeds of over 170,000 sporting events per year and fan loyalty services such as marketing technology to attract customers. This software enables DraftKings to purchase advertising space at key moments of live sporting events; therefore attract customers.
The terms of the deal were not disclosed.
Ezra Kucharz, DraftKings Chief Business Officer, called the partnership “mutually beneficial” and added in a statement that alignment with Genius will allow the company “to expand the capabilities of our products and provide our customers with new and exciting features like To offer single games. “
DraftKings reported revenues of $ 312 million in its earnings report for the first quarter. The company also raised its fiscal 2021 revenue forecast from $ 900 million to $ 1 billion to $ 1.05 to $ 1.15 billion.
In April, DraftKings joined Caesars and FanDuel in an NFL sports betting partnership. The agreement enables sports betting companies to use the NFL’s intellectual property and brands in betting promotions. The companies will also work on a content-sharing model with the NFL. For example, the betting sites are allowed to use materials such as NFL highlights and next gen stats data to help set betting lines.
That’s why companies need to do business with Genius.
The London-based data and technology company also signed an NFL deal last April, allowing it to distribute real-time play-by-play stats as well as the league’s next-gen stats. This four-year cash and equity deal with options could be valued at $ 1 billion over the life of the contract if renewed.
Genius has completed a $ 1.5 billion merger with special purpose vehicle dMY Technology Group and is now traded on the New York Stock Exchange under the symbol GENI with a market capitalization of $ 3 billion. In its earnings report for the first quarter last May, the company announced that it had earned $ 53.7 million and raised its revenue forecast from $ 190 million to as much as $ 260 million. The stock lost 2% on Wednesday to close at $ 15.86 per share.
Sports betting is legal in 22 states and the District of Columbia, according to the American Gaming Association, and DraftKings is postulating entry into additional markets, including New York. The state is nearing approval of mobile betting and estimates the market will bring in $ 482 million in tax revenue, according to the Wall Street Journal. New York plans to charge platforms a one-time license fee of $ 25 million for access.
In addition to NFL data, DraftKings will receive data on the National Basketball Association, Major League Baseball, and NASCAR. Genius also has international soccer partnerships with the English Premier League and Liga MX.
DraftKings shares closed at $ 48.67 on Wednesday.
Disclosure: CNBC’s parent company Comcast and NBC Sports are investors in FanDuel.