It was announced yesterday that DraftKings would be spending even more money, but this time it would be buying out the Israeli-based software company BlueRibbon. Currently, the financial terms of this deal are not available to the public.
DraftKings is a publicly traded company, and investors initially reacted positively to the news causing a small spike in the price of the stock. Over the following 48 hours, the price has waved back and forth but currently sits at $63.55 after closing at $62.88 last Thursday, April 1st.
What Will BlueRibbon Supply DraftKings
It is being reported that the main reason that BlueRibbon is being acquired is to provide game and jackpot options to the DraftKings sportsbook and daily fantasy sports platforms. This will primarily deal with the promotions and reward sections of the applications.
In a quote provided by The Motley Fool, DraftKings co-founder Paul Liberman said, “Integrating BlueRibbon’s proprietary, proven technology will enable DraftKings to create dynamic incentives for our users as they engage with our products.” What this screams is keeping users engaged by allowing more games and interactions on the application and browser site.
DraftKings, and pretty much every application, wants you to interact with it as long as possible. By adding more dynamic and interactive content to promotions, rewards, or even just side games, DraftKings will keep users on its apps for longer periods of time.
It will be very interesting to see what BlueRibbon will offer and what kind of gaming we see on the DraftKings applications in the future. This could be a massive move if the rewards program on DraftKings becomes far superior to the other sportsbooks.
Competition Heating Up in Mobile Sports Betting
Mobile sports betting is the next big thing. Goldman Sachs recently predicted that the market could grow to nearly $40 billion by 2033. Currently, the sports betting market is approaching only a single billion dollars in value. It is evident that companies want in on sports betting, especially mobile and online sports betting, the driving force of this market growth.
DraftKings has added BlueRibbon to its long list of recent purchases. However, Flutter, partial owners of FanDuel and Fox Bet, as well as PointsBet, Wynn, Bally’s, William Hill, BetRivers, and more are all making massive purchases in an attempt to gain an edge in sports betting.
All of these online sportsbooks are competing to gain the largest market share in each state that is next to legalize. States that have launched recently, like Virginia and Michigan, have become major battlegrounds to see who can capture the most of the market.
While DraftKings has been focused on the gamification of its rewards and application, PointsBet recently made a large purchase to further improve its live-game betting. Flutter and FanDuel similarly have been investing in live-game betting but in the micro-betting market. This live-game betting is for pop-ups to wager on what will happen next in the game.
Each sportsbook is going to have its own approach, and the competition is going to breed much better products for bettors, and not to mention more competitive odds.