DraftKings slides Euroleague Basketball into a streaming rights deal that will allow DraftKings customers in the United States and Canada to watch top-level European professional basketball matches on the company's platform (such as mobile apps) and invite them to compete in daily fantasy contests that offer cash prizes, according to a report by Bloomberg Tuesday.
DraftKing provides customers access to one free game per week and offers daily fantasy players to participate in a contest that cost $3 or more. As the 2017-18 EuroLeague basketball season began last month, the contest will begin in the first quarter of 2018.
Discerning opportunity
The daily fantasy sports company declined to provide details of payment, but DraftKings saw the business opportunity drive interest in the U.S. and Canada and generate revenue. As DraftKings launched EuroLeague contests for the first time this month, Robins anticipates that there will be hundreds of thousands of customers who will watch live games and play fantasy contents in a year.
"In the U.S., there are many broadcasters that have invested tremendous amounts of money in rights and are now creating subscriptions and streaming packages," co-founder and Chief Executive Officer of DraftKings Jason Robins told Bloomberg at the Web Summit conference in Lisbon, Portugal. "They're looking for different ways to distribute their product, and we have the customers they want."
In July 2017, DraftKings inked EuroLeague basketball to a deal to become its official fantasy sports partner.
In recent months, the Boston-based company has expanded daily fantasy operations in Ireland and Austria. DraftKings has been partnering with other professional sports leagues in North America, including Major League Baseball, National Hockey League, and NASCAR.
Legal challenges
As online video is the fastest-growing media platform today, tech companies such as Twitter, Amazon, Yahoo, and Facebook successfully launched online sports streaming services that would allow customers to watch live games.
The streaming service for some live sports events is also available on sports data industry Sportradar, sharing-video company YouTube and others.
DraftKings have faced legal challenges with state lawmakers in the last few years. This past summer, the Federal Trade Commission (FTC) nixed the merger of DraftKings and FanDuel, noting that daily fantasy sites (DFS) controlled more than 90 percent of the U.S.
fantasy daily sports market, and this business was believed to be regarded an illegal monopoly.
While Internet gambling is illegal in numerous states, it is growing rapidly. Robins said the option to transition DraftKings into sports books would be considered had the U.S. legalized sports betting, according to a report. The daily fantasy product has headed overseas. DraftKings expanded daily fantasy product offering in Western European countries that regulate sports gambling.
DraftKings into profitable business by 2019?
Robins acknowledged that DraftKings, which was founded in 2012, struggled to make a profit, but he hopes that the company will produce positive earnings by the end of 2019. Investment groups and private equity firms have invested $750 million in DraftKings. Groups and firms that funded in its platform include Raine Group, Atlas Venture, 21st Century Fox, MLB, NHL and Major League Soccer.
