DraftKings Poaches Madison Square Garden From Rivals FanDuel
The battle in the one day fantasy sports betting market is nothing short of ferocious. As we have been reporting in the last few years the two main players in the market DraftKings and arch rivals FanDuel have been on an acquisition and sponsorship spree that would make any marketing guru’s head spin.
All the fuss surrounding this sector revolve around entry fees which are the main revenue source for these companies. The simple fact that only two years ago the entry fees were worth only worth about $245,000. According to a study in 214 by Eilers Research LLC, this is set to reach a staggering $14,4 billion by 2020.
As we speak FanDuel controls around two thirds of the daily fantasy market with DraftKings closing the gap with the remaining third. The latest marketing move by DraftKings is the news that they have signed a marketing agreement with Madison Square Garden which will see them take over from the nemesis FanDuel who used to have a deal with MSG.
DraftKings will now have designated space within the arena and will become the official daily fantasy sports sponsor for MSG’s teams that include the New York Knicks and hockey’s Rangers.
CEO of DraftKings Jason Robbins expressed his delight at the new partnership especially as they replaced FanDuel. He said,” Madison Square Garden is the most famous sports venue in the world. Everything happens there. To have access to that in exclusive fashion is a meaningful differentiator from our competition.
MSG’s executive VP Ron Skotarczak was equally pleased with the attention they were getting and confirmed they were the courted by multiple potential partners, He said,” We really wanted to get deeper with a few partners rather than spreading ourselves wide across multiple partners. Many of the others, who were great to work with, they cared about maybe one team or two of the teams, and didn’t embrace the concept of being fully exclusive with the sports teams and arena as well.”
Other aspects of the deal include the DraftKings Fantasy Lounge inside the MSG where fans would get the chance to play fantasy sports games and get an integrated sporting experience.