Draftkings Inks Multi-Year Deal With Warner’s Turner Sports

Draftkings has inked a multi-year agreement with WarnerMedia’s Turner Sports, which will make the online sports entertainment and gaming company the exclusive sportsbook and daily fantasy sports provider across selected channels.

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Shares are up 1.8% in Thursday’s pre-market trading session. According to the agreement, Draftkings (DKNG) will provide sports betting information and daily fantasy content across select Turner Sports and Bleacher Report digital channels including the B/R app. The deal excludes NBA programming. Planned integrations will include custom content segments, DraftKings’ betting odds and daily fantasy statistics, among others.

“Regulated betting is quickly becoming a fixture of modern sports entertainment, and this collaboration with Turner Sports further scales the reach of our products and content to engage fans,” said DraftKings Chief Business Officer Ezra Kucharz. “Turner Sports platforms provide exceptional content as they continually captivate sports audiences. Their medium aligns with the DraftKings’ brand and we look forward to broadening our visibility.”

Turner Sports is a division of WarnerMedia owned by AT&T (T), which provides premium sports content across multimedia screens. Turner Sports’ television coverage includes Major League Baseball, the NBA, and Men’s Basketball Championship.

DraftKings is the official daily fantasy partner of the NFL, MLB and the PGA TOUR as well as an authorized gaming operator of the NBA and MLB and an official betting operator of the PGA TOUR.

Shares in DraftKings have more than quadrupled since their Nasdaq debut at the end of April and are up 345%. That’s with a Moderate Buy analyst consensus scoring 12 Buys versus 6 Holds. Meanwhile, the $56.76 analyst price target implies 19% upside potential over the coming year.

Oppenheimer analyst Jed Kelly this week reiterated an Buy rating on the stock with a $55 price target (16% upside potential) on expectations that NY could legalize mobile sports betting by year-end.

“The 2020 legislation session is being extended and there are encouraging signs that NY could legalize mobile wagering based on a state commissioned revenue study expected to be released relatively soon,” Kelly wrote in a note to investors. “Additionally, NJ’s success (likely report’s another record month this week) and emerging budget deficits could be a catalyst for Cumo to legalize.” (See DraftKings stock analysis on TipRanks)