Draftkings Inc. (NASDAQ:DKNG) Enters Partnership With Philadelphia Eagles To Be Its Betting and Fantasy Partner
Draftkings Inc. (NASDAQ:DKNG) stock surged after it announced that it entered a multi-year deal with Philadelphia Eagles. The deal makes the daily fantasy and online betting company the official sports betting partner and fantasy sports partners of the Philadelphia Eagles.
Philadelphia Eagles partners with Draftkings to enhance the fan experience
According to the agreement, the company will receive naming rights to the Lincoln Financial Field Club, which will change to “The Draftkings Filed Club.” The field will offer exclusive game-day access and VIP experience that features an on-field viewing section in the northern area, a private club space for hospitality arrangements as well as other benefits. Most importantly, The Draftkings Field Club will start working for ticketed visitors after resuming the in-person sports experience at Lincoln Financial Field.
Catherine Carlson, The Eagles’ SVP revenue and strategy, stated that the partnership with DraftKings presents exciting and new opportunities to drive fan experience to the next level at the Lincoln Financial Field. She added that DraftKings is an established leader in the entertainment and sports industry with a massive Philadelphia presence. Carlson said they are looking forward to having a successful collaboration that will showcase their shared vision.
Competition heating up in the online betting segment
Since April, when DraftKings announced a merger with Diamond Eagle, its stock has surged by 211%. The surge is mainly due to the excitement around online betting, which is an industry where DraftKings is emerging as a leader. The stock currently trades at 64.7 times the 12-month forward sales. Most analysts covering the stock have a buy rating on the stock, but the stock’s mean target price is $52.5, which is below current levels.
It is important to note that competition has been heating up in the online sports betting segment. For instance, Penn National Gaming (NASDAQ:PENN), one of DraftKings’ competitors located just an hour and a half from the Lincoln Financial Field of The Eagles, has witnessed its stock triple digits since the beginning of the year.