The New York Business Journal reports an “imminent” deal between Boston-based startup DraftKings and the UFC which would make the fantasy sports operator an exclusive sponsor of the UFC.
Prior to UFC 182, Draft Kings announced a sponsorship deal with Jon Jones. At UFC 183, its logo donned the Octagon mat. Now, it soon will be the official fantasy sports operator of the UFC.
The deal was announced by one of Draft Kings’ venture capital investors at a conference in New York on Tuesday.
Draft Kings indicated that a one-year deal will include “prominent DraftKings signage at events, a large web presence, and broadcast features designed to bring UFC fans to the fantasy site.”
The company has produced $30 million in revenue last year as it brokered deals with the NHL and Major League Baseball. Financial terms of the deal were not disclosed. Draft Kings and rival Fan Duel own 90% of the fantasy sports market.
Payout Perspective:
The deal make sense as fantasy sports is hot at this time. The article indicates that fantasy sports could grow to a $20 billion market. With the NBA’s commissioner Adam Silver acknowledging that gambling should be regulated and it is inevitable, fantasy sports operators have been signing deals with leagues and teams to be its official sponsors. The growth in this market reflects a correlation between fantasy sports, gambling and the interest in owning statistics for its use.
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