DraftKings, after Michael Jordan offer, reveals Chicago Cubs alliance

DraftKings, after Michael Jordan deal, unveils Chicago Cubs alliance

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DraftKings on Thursday revealed an unique collaboration with the Chicago Cubs, one day after the dream sports business and bookie detailed an alliance with another Windy City icon, Michael Jordan. 

Under the offer, DraftKings will be the Cubs’ main everyday dream and sports wagering partner. The business likewise will look for to develop a “first-of-its-kind sportsbook” at the Cubs’ 106-year-old Wrigley Field, according to a news release. Doing so needs approval by the city of Chicago. 

In an interview on CNBC’s “Squawk on the Street,” DraftKings co-founder Matt Kalish stated the business wants to deal with Illinois regulators and regional authorities to bring the Wrigley sportsbook “to market as soon as we possibly can.”

DraftKings stated it has 8 retail sportsbooks in the U.S., consisting of one in East St. Louis, Illinois. 

“We’re also really excited about the marketing aspect of the deal. You know, the Cubs are a storied franchise that’s beloved throughout the country, and especially in Illinois, which is one of the biggest, most important sports-betting markets in the country,” stated Kalish, president of DraftKings’ North American operations. 

DraftKings revealed collaborations with numerous NBA groups previously this year. The tie-up with the Cubs is the most recent example of how betting is ending up being more linked with expert sports as states throughout the U.S. legislate sports wagering. As of mid-August, 22 states, plus the District of Columbia have actually legislated it, according to the American Gaming Association. 

Shares of DraftKings were down 4% Thursday to around $38. The pullback followed the stock rallied 8% Wednesday on the news that Jordan, among the most popular sports figure ever, will end up being an unique consultant to DraftKings’ board of directors. 

“Who wouldn’t want Michael Jordan around the table advising you on strategy, talking with the board, helping with initiatives throughout our company? He’s obviously the top of probably everyone’s list of marketing geniuses, branding geniuses who you’d want to collaborate with,” Kalish stated. “We’re just getting started, but I think it’s going to be a tremendous, additive piece to the overall success of DraftKings over the next several years.” 

Although Jordan’s function as chairman and owner of the NBA’s Charlotte Hornets might limit him in some locations, Kalish stated DraftKings plans to lean on the basketball legend as much as possible. 

“Every way that we can possibly work with Michael, in every aspect, we’re going to be doing that,” he stated. 

Shares of DraftKings are up more than 250% this year.