DraftKings (DKNG) and the UFC said Thursday that the sports betting platform will become the mixed martial arts organization's first "Official Sportsbook and Daily Fantasy Partner" in the U.S. and Canada.
Shares of the Boston company were up 4.4% to $68.60 in premarket trading.
Under the arrangement, DraftKings will offer in-game promotions, activations, in-broadcast odds integrations and UFC branding across its daily fantasy and betting products and will possess rights to use official UFC marks and logos.
DraftKings also will provide fans weekly with free-to-play UFC games, enhanced prop bets and other sportsbook opportunities.
Prior to UFF 259 on Saturday, DraftKings launched a free-to-play UFC pool with $10,000 in prizes.
"This is a massive deal that will benefit UFC, DraftKings, and most of all the fans,” UFC President Dana White said in a statement. “DraftKings is the best at what they do in the betting and daily fantasy space, and unlike other sports, UFC has no off season. The action will be non-stop for fans of UFC and DraftKings."
DraftKings also will become the presenting partner of the UFC Fight Clock, UFC’s time-keeping system, debuting at Saturday's event.
Last year, both UFC daily fantasy and sports betting saw substantial growth on DraftKings.
"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,” said Jason Robins, DraftKings co-founder, CEO and executive chairman.
DraftKings has seen a great deal of activity in the last week.
On Wednesday, DraftKings and pay television provider Dish Network (DISH) announced a partnership in which Dish TV viewers will be able to access the DraftKings app from their televisions to bet on live sports games.
Last week, DraftKings posted better-than-expected fourth-quarter revenue and raised its 2021 sales guidance as sports - and wagering on it - came back stronger than expected amid the ongoing pandemic.