The National Basketball Association on Thursday unveiled an expanded multiyear relationship with DraftKings (DKNG) - Get DraftKings Inc Class A Report. naming the online sports betting company the league's co-official sports betting partner.
The Boston company and the NBA first teamed up in 2019 when Draftkings became an authorized gaming operator for the league.
Under the expanded arrangement, DraftKings will become the exclusive presenting sponsor of NBABet Stream. That's the league’s betting-focused telecast, which is distributed via NBA League Pass and the NBA TV app.
During the weekly broadcast, DraftKings odds, lines, props and other forms of gambling content will be integrated into the live-game experience.
DraftKings will also have the right to activate on-site at tentpole NBA events including the NBA All-Star Game, Rising Stars, NBA All-Star Saturday Night and NBA Draft.
“The NBA season only just tipped off, and yet we have already seen the immediate impact of the sport among our customer base with significant reengagement along with healthy new betting activity across all of our states,” Ezra Kucharz, chief business officer at DraftKings, said in a statement.
On Wednesday, DraftKings and iHeartMedia (IHRT) - Get iHeartMedia, Inc. Class A Report unveiled a multiyear strategic relationship. That deal names DraftKings the official odds supplier for iHeartMedia’s broadcast, digital, podcast and social platforms.
Late last month, DraftKings scrapped its $22.4 billion takeover bid for British bookmaker Entain.
Under U.K. takeover rules, DraftKings had until the close of London trading on Nov. 19 to formalize its $22.4 billion bid or walk away from the company for at least six months..
DraftKings is scheduled to report third quarter earnings on Friday.
Roth Capital analyst Edward Engel said Tuesday that it was "becoming increasingly clear" that DraftKings is poised for a Q3 miss and "underwhelming" 2021 guidance, according to the Fly.
He cited the quarterly report from Flutter Entertainment, Fanduel's parent, and more U.S. states reporting net gaming revenue for September to support his view.
The analyst added that Q2 and Q3 are DraftKings' "seasonally weakest quarters from a market share perspective."
After what he expects to be a Q3 revenue miss, Engel, who keeps a sell rating and a $41 price target on DKNG stock, said he saw Wall Street lowering Q4 and 2022 forecasts.
Shares of Draftkings at last check were down 3.5% to $45.18.