Leading US gambling company Draftkings Inc (NASDAQ:DKNG) is putting its chips on streaming in a bid to stay competitive against major rival Flutter Entertainment Inc’s FanDuel platform.
According to sources familiar with the matter, DraftKings intends to launch an ad-supported, free video service featuring video podcasts sponsored by the company.
The service could launch in a matter of weeks, with the aim of attracting new audiences and brand sponsors.
Boston-based DraftKings is not a stranger to the convergence of media and gambling, having acquired sports betting network Vegas Sports Information Network (VSiN) in March 2021. DraftKings hired ex-ESPN executive Stacie McCollum as the head of programming.
FanDuel, which was bought out by FTSE 100 constituent Flutter for US$4bn in December 2020, has emerged as a major competitor to DraftKings since the acquisition. It has also expanded into streaming via the FanDuel TV app.
Such is FanDuel’s rate of growth – supported by liberalised gambling laws in the US – that it could soon become Flutter’s primary revenue stream, although the subsidiary has yet to turn a profit.
As Flutter’s attention shifts to the US, the gambling giant is rumoured to be mulling a New York Stock Exchange listing, a move that would further encroach into DraftKings' territory.
Like a cow in a cannabis farm, the stakes have never been higher for DraftKings.