Dish-DraftKings Sports Betting Pact Blitzes FuboTV Stock
DISH Network (Nasdaq: DISH) and DraftKings (Nasdaq: DKNG) on Wednesday announced a strategic agreement across DISH's portfolio of brands to bring DraftKings' sportsbook and daily fantasy experiences directly to DISH customers nationwide, beginning with a first-of-its-kind DraftKings app integration on the DISH TV Hopper platform. The agreement also allows for subsequent DraftKings sportsbook and daily fantasy experiences with DISH Network's SLING TV and Boost Mobile in the future.
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Why It Matters
- "The integration with DraftKings is an exciting enhancement for our customers and a great addition to the growing DISH TV Hopper platform — a one-stop entertainment hub," said Brian Neylon, Group President, DISH TV. "We're thrilled to work with DraftKings to amplify the sports-fan experience, and extend the DraftKings footprint across our unique suite of services, including SLING TV and Boost Mobile, with potential applications across our 5G wireless buildout in the future."
- Draftkings will most certainly gain a leg up against its stiffest rival FanDuel.
- DISH TV customers with an internet-connected Hopper family receiver will be able to access the DraftKings app to view betting odds and fantasy contests.
- The companies’ partnership will also allow for a rollout of the betting firm’s app on Dish’s Sling TV internet-delivered bundle as well as the Boost Mobile wireless network.
- They can initiate bets or contest entries with DraftKings directly from their TV, then set recordings and watch the live sports that correspond with those bets or fantasy teams.
- The initial launch will allow for bets and contest entries to be placed on NCAA basketball, NBA, and NHL games.
How FuboTV Has Been Negatively Impacted
- Shares in Fubo, which have been on a wild ride in recent months but have risen more than 300% over the past year, were down 19% as the trading day reached the home stretch.
- Scale has been a question mark for the upstart, and the Dish-DraftKings news shows the challenge ahead for Fubo.
- Fubo has been attempting to enter the space with news it had purchased Vigtory and Balto Sports, two deals that will help it launch free-to-play gaming and a full sports book in the second half of 2021.
- Although it has to go up against better-capitalized rivals such as Hulu and YouTube as well as Sling, Fubo has a number of champions in the financial community.
- Bulls see the company as a likely beneficiary of cord-cutting, which shaved more than 5 million subscribers from the traditional bundle in 2020.
- Jason Helfstein, an analyst with Oppenheimer, reiterated his “buy” rating on Fubo’s shares after the quarterly report, raising his 12-month price target to $45 from $30.
Helfstein pointed out that The company is “well-positioned to benefit from the industry-wide shift to over-the-top (OTT) streaming services and, now, online sports betting."
Many internet-delivered bundles keying on entertainment offerings, “forcing sports fans to remain tethered to pay TV,” he added. Fubo, meanwhile, “is exploiting the opportunity in sports by providing a comparable viewership experience at a lower cost than its pay-TV counterparts.”
- Aaron Goldstein, Gambling911.com
