DraftKings Probes New Highs on Deal with DISH Network

Posted on: March 3, 2021, 08:28h. 

Last updated on: March 3, 2021, 09:01h.

Todd Shriber @etfgodfather Read More
Expertise: Financial, Gaming Business, Mergers and Acquisitions.

DraftKings (NASDAQ:DKNG) stock is hitting new highs Wednesday. That’s after the company announced an agreement with DISH Network (NASDAQ:DISH) to bring daily fantasy sports (DFS) and sportsbook offerings to customers of the satellite television provider.

DISH DraftKings
A worker installs a DISH Network satellite. The company is partnering with DraftKings. (Image: USA Today)

As part of the accord, the DraftKings mobile app will be integrated into the DISH TV Hopper platform. Customers with an internet-connected Hopper family receiver will be able to view sports betting odds powered by the gaming company as well as its DFS contests.

They can initiate bets or contest entries with DraftKings directly from their TV, then set recordings and watch the live sports that correspond with those bets or fantasy teams,” according to a statement.

The pact between the sportsbook operator and Colorado-based DISH will only be available in states in which sports wagering is currently permitted. DraftKings is live in 14 states, representing almost a third of the US population.

After placing a bet or entering a fantasy contest, the customer will receive a text prompt to confirm the entry in the DraftKings app on their mobile device. Initially, DISH clients with the Hopper device will be able to wager on NCAA basketball, NBA, and NHL games, with more features slated to roll out at a later date.

DraftKings, DISH Leveraging Sports/TV Marriage

The pact between the two companies is the latest effort by a gaming operator to tap into US fans’ widespread  consumption of sports via television.

It’s a fundamentally sound idea for gaming companies and entertainment partners alike, because data confirms regulated wagering and fantasy sports boost ratings for some leagues, while increasing fan engagement. Studies indicate that bettors with action on a particular contest are more likely to watch that game on TV than their counterparts with no financial interest in the outcome.

“The agreement also allows for subsequent DraftKings sportsbook and daily fantasy experiences with DISH Network’s SLING TV, and Boost Mobile in the future,” according to the statement.

As of the third quarter of 2020, DISH had 8.97 million pay TV subscribers, while the over-the-top (OTT) service SLING had 2.42 million. Boost Mobile has nine million customers.

Future of Sports TV?

Sports betting’s growth in the US comes at a time when linear TV is scuffling and shedding customers to streaming services.

Some industry observers believe cable and satellite providers will leverage interactive experiences in combination with sports as a means of enticing and retaining clients.

It’s also possible that an accord such as the one struck between DraftKings and DISH is the start of something more advanced. For example, some companies are looking to evolve the betting/sports TV marriage to the point that viewers can wager on outcomes of specific events within games — balls and strikes, made shots, etc. — straight from their televisions.

DISH gaming approvals are still pending in Michigan, New Jersey, Pennsylvania, Tennessee, and West Virginia.