DraftKings continues to expand its services in the U.S. and globally. DraftKings serves as the exclusive fantasy sports and sports betting platform for various sports teams, leagues, and entertainment companies alike. With the platform progressively separating itself from the competition, is DKNG stock a buy?
On Nov. 17, the NBA purchased a stake in Sportradar (SRAD)—a company that DraftKings is heavily invested in. Sportradar is one of the top sports data and analytic companies in the world. Now, Sportradar is an exclusive provider of NBA data for the league. DraftKings uses Sportradar’s technology heavily since it relies on the company for implementing sports data on its platform.
DraftKings and Boston Bruins sponsorship deal
DraftKings and the Boston Bruins announced their partnership on Nov. 18. The sports betting platform will be the exclusive daily fantasy sports partner of the team and its stadium, TD Garden.
If sports betting becomes legal in Massachusetts, the companies have terms in the deal that will make DraftKings the official sports betting partner for the team and its arena. When the sports organization holds its Boston Bruins Foundation 50/50 charity raffles, the betting platform will be the exclusive presenting sponsor for the raffles.
DraftKings has partnerships with various sports leagues and organizations globally, but hockey is one sport that the company wants to build its services in. The platform hopes to entice more people to participate in sports betting and fantasy picks in the hockey world. The NHL and DraftKings have been partners since 2014. The platform is the league’s official daily fantasy and sports betting partner.
DraftKings is betting on Massachusetts to legalize sports betting in the near future.
DraftKings and the Bruins have specific terms in the deal that rely on sports betting being legalized in the team’s state. They seem very assured that it will be legalized soon.
However, a bill to legalize the practice won’t go into effect until next year at the earliest. Earlier in July, the Massachusetts House of Representatives nearly unanimously passed a bill to legalize sports betting. However, the state’s Senate didn't pass the bill to go into effect this year. Now, they're on a seven-week recess that started on Nov. 17.
The state’s House of Representatives, and even Massachusetts Governor Charlie Baker have been pushing for the Senate to pass the bill. The Senate showed minimal effort to pass the bill in 2021, but the state hopes that they will pass it in early 2022.
Is DraftKings a buy?
According to MarketBeat, DKNG is a buy since it has a target price of $65.27. DKNG is currently around the price of $36.6 and has gone down over 40 percent since the beginning of September. However, the company is expanding its services and it's expected to rebound from its third-quarter earnings.
The stock’s price is also very close to a significant resistance area of $35. The price could make a huge reversal from that area with the help of the positive fundamental news that’s been coming out recently.