DraftKings becomes the official partner for Chicago Cubs
Wrigley Field is one of the oldest baseball stadiums in America. Even though it’s been in existence for so long, it will become the first Major League Baseball venue to have a sports betting option available on site. The partner for Chicago Cubs recently announced that they would be entering into a multiyear partnership with DraftKings to host a retail sportsbook on-site.
The historic Wrigley Field, home to the Chicago Cubs, is set to make baseball history as the first Major League Baseball venue to feature a sports betting option on-site.
As per the provisions of the partner for Chicago Cubs, fans will have close access to betting windows and self-serve stations, although it is not exactly clear whether these stations will be situated within the stadium itself or close by.
A growing number of sports fans are keen on integrating sports betting into the game experience and DraftKings has recognized this need. Currently, there is no established timeline as to when sportsbooks will begin operating within or around Wrigley Field as the stadium is still awaiting approval from the city. DraftKings must also apply for and be granted a gaming license from the Illinois Gaming Board before this can occur.
The state legalized sports betting in the summer of 2019 but the state’s 1st legal bet wasn’t accepted until March 2020. Illinois residents though have been making Online sports bets since summer. This move to include a DraftKings sportsbook at Wrigley Field is one that will take full advantage of the burgeoning sports wagering industry in the state of Illinois. Hopefully, other MLB stadiums will follow.
Some NFL stadiums are already allowed to include betting lounges and some teams have even accepted sponsorships from various sportsbook operators as the league continues to get a piece of the sports betting market action. These lounges are designed to showcase mobile betting options as well as odds and bets to help sports fans make informed decisions.
DraftKings goes public. As a sports betting company, DraftKings knows a thing or two about taking risks. The company recently closed a $3.3 billion merger deal that permitted it to trade on the Nasdaq Global Select Market.
DraftKing’s stock price surged on its 1st day of trading despite the coronavirus forcing sports leagues to take a prolonged time out. Just a day after the company closed, DraftKings’ shares climbed by as much as 18.3%. DraftKing’s shares, which are today listed under the ticker symbol DKNG, closed up 10%.
The coronavirus forced DraftKings to think innovatively as daily fantasy sports contests, as well as online betting on professional games were not available. To keep people betting, it set up free pools and contests that were linked to well-known TV shows and reality programs. DraftKing’s customers were also given options to wager on e-sports events like simulated NASCAR races and online video games like League of Legends.
Today, DraftKings enjoys 3 primary lines of business namely sports betting, online casino gambling, as well as daily fantasy sports. The three segments are legal in various areas and have different regulatory challenges and margin profiles. Even though the company’s lines of business have grown since the company was founded in 2012, the DA of the company is still data-oriented.
What other partnerships does DraftKings have?
The partner for Chicago Cubs with Wrigley Field was announced just a day after DraftKings announced that basketball legend Michael Jordan and Hall of Famer would join the company as an investor and a special advisor. This deal caused DraftKing’s shares to rise by as much as 6% when the announcement was made. Jordan is scheduled to enjoy an undisclosed equity stake in the company in exchange for supplying the daily fantasy sports company with direction and strategic guidance.
DraftKings also has another multi-year gaming partner for Chicago Cubs with 3 NBA teams namely the Boston Celtics, the Indiana Pacers, as well as the Philadelphia 76ers. The NBA represented the company’s 2nd most popular sport, a fact that allows it to keep scaling its operations.
DraftKings also has public partnerships with ESPN and the New York Giants. By entering into such partnerships with major leagues and teams, DraftKings is setting itself up to become the premier household name in the world of online sports betting.
The state of the global sports betting market
The global sports betting market continues to grow in remarkable and unprecedented ways. As a matter of fact, despite this year’s catastrophic pandemic, sportsbooks all over the world are one of the fastest-growing industries in the world offering immense opportunities and potential for sportsbooks, as well as punters.
As technology continues its advancement, the sports betting industry will continue to experience dynamic changes, expanding in established markets such as Vegas and New Jersey while forging their way into new ones. And DraftKings is at the helm of it all.
Just how massive is the sports betting market?
It is vital to realize that even though the legal sports betting market has grown so much in a short space of time, it is not easy to estimate its size as regulations and record-keeping is quite inconsistent. That being said, some estimates claim that the global sports betting market is anticipated to enjoy a market capitalization of $250 billion. Any other sports bets that are staked are made in venues such as casinos, horse tracks, as well as other international conduits.
As it stands, the US is the fastest growing sports betting market. After decades of puritan-influenced values that saw the restriction of the scope of legal sports betting, the 1992 Professional and Amateur Sports Protection Act was repealed by the Supreme Court in 2018.
Since the repeal, 18 more US States have followed in New Jersey’s footsteps, including Illinois, and another 11 are seriously considering implementing the legislation. This has been a boon for DraftKings, which started in 2012 as an online daily fantasy sports app and has since grown considerably to become one of the most popular sports betting platforms in the world.
Final Thoughts
While Massachusetts is yet to legalize sports betting, Boston which stands as the NBA’s most renowned franchises represents a crucial market to DraftKings especially considering that it is the home of the company’s HQ. For now, all that Boston fans can do is watch and wait to see if legalized sports betting will come to the home of DraftKings.
