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DraftKings, UFC Strike Sportsbook, Daily Fantasy Partnership

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DraftKings, UFC Strike Sportsbook, Daily Fantasy Partnership

DraftKings Inc (NASDAQ: DKNG) announced Thursday that it is the sportsbook and daily fantasy partner for UFC, the world’s premier MMA organization.

What Happened: DraftKings, an online betting and iGaming leader, will now be able to offer fans “in-game promotions, activations, in-broadcast odds integrations and UFC branding” across its platform.”   

The five-year deal is valued at $350 million, according to ESPN, and will be available to UFC fans across the the U.S. and Canada ahead of the UFC 259 MMA event between Jan Błachowicz and Israel Adesanya on Mar. 6.

The deal marks yet another significant partnership with a major sports league for DraftKings. After partnering with the NFL back in 2019, the company has snagged partnerships with sports teams in the NBA, MLB and NFL such as with the Detroit Pistons, Chicago Cubs and the Philidelphia Eagles.

Why It Matters: The UFC is a major win for DraftKings and “marks one of the most significant partnerships in UFC history.”

Unlike other sports, the UFC has no off season, which should also help calm analysts and investors who have worried about the cyclical nature of other sports and the effects a lull could have on revenues of sports betting companies.

With this partnership, DraftKings is able to secure a constant revenue stream.

UFC has seen substantial growth over the last year, according to Thursday's announcement.

Combat sports, and UFC in particular, have scaled significantly across both our sportsbook and daily fantasy verticals, evolving from a niche offering to a high-demand category that we believe will only grow further as we innovate,” Jason Robins, DraftKings co-founder, CEO and executive chairman, said in a statement. 

What’s Next: As a promotion, DraftKings is offering a free-to-play UFC pool with $10,000 in prizes ahead of the Mar. 6 event.

DraftKings will become the official partner of UFC’s new UFC Fight Clock technology system, which will allow athletes, officials and fans the ability to watch the same countdown clock at the same time.

As part of the deal, DraftKings will have advertising space for its brand visible during Dana White's Contender Series and in the Octagon during other select events.

"This is a massive deal that will benefit UFC, DraftKings, and most of all the fans," said UFC President Dana White. "DraftKings is the best at what they do in the betting and daily fantasy space."

DKNG Price Action: DraftKings shares were down 1.26% at $64.92 at last check Thursday. 

 

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