DraftKings, a sports gambling firm, is preparing for the National Football League season by partnering with Genius Sports in a multi-year data deal.
The agreement gives DraftKings access to unique betting data from the NFL since Genius Sports is the official copyright owner. The businesses said on Wednesday that DraftKings would have access to Genius’ live stream feeds from more than 170,000 athletic events each year, as well as fan engagement offerings such as digital technologies to entice consumers.
Ezra Kucharz, DraftKings Chief Business Officer, described the collaboration as “mutually beneficial,” further stating that partnering with Genius will let the business expand on the capabilities of their services and deliver new and interesting services for their consumers, such as single-game parlays.
In its first-quarter financial report, DraftKings recorded $312 million in sales. The business also increased its sales estimate for 2021 to a level of $1.05 billion to $1.15 billion, up from $900 million to $1 billion.
DraftKings joined FanDuel and Caesars in an NFL sportsbook deal in April. The deal grants sports wagering companies permission to utilize NFL copyrights and trademarks for gambling advertising. The firms will also collaborate on material with the NFL. Gambling firms will be able to use content like NFL replays and Next Gen Stats data to create betting odds.
The London-based analytics and technology business also signed an NFL contract in April, letting it provide real-time play-by-play numbers as well as the league’s Next Gen Stats. If the contract is extended, the four-year cash and equity arrangement with options may be worth $1 billion over the life of the pact.
Genius concluded a $1.5 billion combination with special-purpose acquiring firm dMY Technology Group and is now listed on the New York Stock Exchange under the ticker code GENI, with a market capitalization of $3 billion . Last May, the firm reported $53.7 million in profits for the first quarter, raising revenue expectations from $190 million to up to $260 million. The stock fell 2% on Wednesday, ending at $15.86 per share.
Sports betting is allowed in 22 states and the District of Columbia, according to the American Gaming Association. DraftKings is strategizing to enter other markets, like New York. As per The Wall Street Journal, the state is getting closer to legalizing mobile bets and thinks the market will generate $482 million in tax income. New York intends to charge networks a one-time license fee of $25 million for accessibility.
DraftKings will receive statistics from the National Basketball Association, Major League Baseball, and NASCAR, in addition to NFL data. Genius has also formed international soccer alliances with the English Premier League and Liga MX.