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Why DraftKings Is Jumping 5% Higher Today

What happened

Shares of DraftKings (NASDAQ: DKNG) were running 5% higher in morning trading Friday after the daily fantasy sports and sports betting leader announced it was the official partner of the Drone Racing League (DRL).

So what

Wagering on drone racing events is legal in Colorado, New Hampshire, New Jersey, Tennessee, and West Virginia, with approvals pending elsewhere.

Image source: The Drone Racing League.

Since consumers can also bet on cricket, darts, and table tennis through DraftKings, why not drone racing? The arrangement will give DraftKings a higher profile as it will gain exclusive marketing rights around sports betting and branding integrations, including custom gates.

Now what

In states where it's legal, drone racing fans will be able to bet both before a race and while a race is under way. And drone racing fans are highly engaged.

The announcement notes consumer research suggests drone racing fans are 90% more likely to be interested in sports betting generally than the average global sports fan, but are also three times more likely to bet on a drone racing event than fans of major sports leagues.

DraftKings chief business officer Ezra Kucharz said in a statement, "Our expertise in sports betting combined with (Drone Racing League's) stats-packed competition will make this a fun and seamless opportunity to engage their avid audience along with tech-savvy, adrenaline-loving sports fans."

DraftKings and DRL will jump into the partnership immediately by hosting pre-flight shows Friday night on Twitter ahead of the live events beginning at 7 p.m.

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