DraftKings expands international strategy with South African partnership
Online sports betting company DraftKings (NASDAQ: DKNG) announced Thursday that it has signed an agreement with a South African gaming and resort company, Peermont Hotels, Gaming and Resorts, to bring its sports betting technology to this country. PalaceBet sports betting is a cooperative effort between the two companies that can be used through a website or through applications for mobile devices.
The bulk of the digital work is apparently done by technology from DraftKings. Iain Gutteridge, Managing Director of PalaceBet, said that because Peermont “is looking to grow and compete internationally, we knew DraftKings could offer the software solution.” For its part, Peermont brings to the partnership a local casino presence and high visibility in the South African gambling market.
Image source: Getty Images.
Expansion is part of DraftKings’ international strategy, which has seen its service offered in eight countries, including Ireland and Austria, over the past few years. According to Statista figures, sports betting in South Africa reached $ 460 million per year in 2019. Slotegrator reports and research from the South Africa National Gambling Board indicate that about half of all South African adults are regular sports bettors, with rugby, cricket, football, and golf being the main betting targets. DraftKings’ press release says it will also make tennis and basketball betting available to South African players.
DraftKings has forged alliances with sports networks, celebrities and physical casinos as part of its strategy of continued expansion. But his stock remains volatile and very sensitive to sports news, like the recent coronavirus outbreaks in various sports teams.
This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are heterogeneous! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.
