The Madison Square Garden Company which owns the NBA’s New York Knicks and the NHL’s New York Rangers has started off 2020 by naming DraftKings as its official and exclusive sports betting partner. Both parties are, however, not new to each other. The sports betting deal is, therefore, more of an extension of an existing partnership.
As per the terms of the agreement, DraftKings will now have brand integration across all of the Madison Square Garden’s (MSG) assets. These will include in-game promotions, the existing digital platforms as well as out-of-home signage. This deal represents a huge marketing opportunity for DraftKings at the MSG arena and similar efforts during the teams’ broadcast on MSG networks. In addition to that, the deal involves various promotions for daily fantasy sports during NBA G-League Westchester Knicks Games at the Westchester County Center.
“The Madison Square Garden Company is known for providing fans with unforgettable moments, and this emphasis on immersive engagement perfectly complements DraftKings and our like-minded commitment to experiential excellence,” Ezra Kucharz, DraftKings chief business officer commented.
One of the most notable aspects of the extended partnership deal is the fact that DraftKings will now be able to set up activation areas at various MSG events throughout the year. These areas are set to significantly boost the company’s digital sign-ups in New York where, hopefully, sports betting will finally become legal this year.
The Catch
Even though the marketing deal touches significantly on sports betting, there is one huge complexity to take note of. That is, fans of the two MSG-owned teams will not be able to place bets inside the arena. Despite the fact that DraftKings will be able to set up activation areas, betting is still not officially included in the deal.
This is because of New York’s laws with regards to sports betting. Bettors still have to travel to retail sportsbooks in the state to place sports bets. The lack of digital sports betting options has been a huge detriment for the state’s gaming industry.
DraftKings’ Other Wins
The partnership agreement between DraftKings and MSG comes just a short while after the latter former announced that it was on the verge of being listed on the New York Stock Exchange. This is a huge leap forward for the daily fantasy sports company. It was able to achieve this through a reverse merger with Diamond Eagle, a publicly-traded shell company.
Moreover, DraftKings also announced that it is soon set to complete the acquisition of SBTech, one of the world’s leading gaming technology companies. This 3.3 billion deal will lead to the formation of the very first and only US-based vertically integrated online casino and sports betting operator.
