DraftKings (DKNG) announced on Tuesday that it is now the first official betting operator of the PGA Tour. Financial terms of the collaboration with the organizer of US golf tours weren’t disclosed.
The partnership marks an expansion of a multi-year content and marketing relationship between the online betting giant and the PGA Tour. Back in July 2019, DraftKings became the PGA Tour’s first official daily fantasy game as part of a multi-year, exclusive arrangement.
By becoming the first to join PGA Tour’s official betting operator program, DraftKings will have rights in the US to use its trademarks, rights to advertise within tour media and tour partner platforms. The betting company will also get access to content and video rights to create pre-game and post-game betting programming. PGA Tour golf tournaments are broadcast to 212 countries in 23 languages.
“DraftKings and the PGA Tour have continued to make history with the innovative additions to our agreement which began last year,” said DraftKings Chief Business Officer Ezra Kucharz. “Golf has been an especially important outlet for fan engagement over these past few months, and this latest collaboration is a significant next step for both the golf and gaming industries.”
DraftKings added that in terms of sports betting, golf represents the company’s fourth most popular sport.
Shares in DraftKings have almost doubled since their Nasdaq debut at the end of April. Meanwhile, Rosenblatt analyst Bernie McTernan this week reiterated a Buy rating on the stock and Street-high $60 price target (71% upside potential), saying that because of the hiatus of sports, he expects strong pent-up demand for sports watching and gambling.
“We believe this is an attractive entry point to own DKNG shares as sports are restarting and COVID-19 is straining state budgets, which we believe will be a catalyst to accelerate sports gambling legislation as states look for additional revenue sources,” McTernan wrote in a note to investors on July 26.
Overall, DraftKings scores 10 Buy ratings versus 1 Hold rating adding up to a Strong Buy analyst consensus. The $47 average price target implies 33% upside potential in the shares over the coming year. (See DraftKings stock analysis on TipRanks).
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