DraftKings Stock Price Increased 6.53%: Why It Happened

By Amit Chowdhry ● Dec 16, 2020
  • The stock price of Draftkings Inc (NASDAQ: DKNG) has increased by 6.53% from a previous close of $50.50 to $53.80. This is why it happened.

The stock price of digital sports entertainment and gaming company Draftkings Inc (NASDAQ: DKNG) has increased by 6.53% from a previous close of $50.50 to $53.80. This is why it happened.

Partnership With InComm Payments

Today DraftKings announced an agreement with InComm Payments (a global leading payments technology company) to launch an industry-first retail gift card. And the launch will expand DraftKings’ presence in convenience stores like 7-Eleven, Speedway, Dollar General, and Sheetz, and also enable consumers to gift the DraftKings experience to others in $25 and $50 denominations.

“Just in time for the upcoming holiday season, we are proud to work with InComm Payments to get DraftKings gift cards on the shelves at several popular retailers,” said Matt Kalish, Co-Founder and President of DraftKings North America. “We are thrilled to provide our customers with another way to fund their accounts and engage with our real money products through this first-of-its-kind offering.”

By utilizing InComm Payments’ retail network, DraftKings is expanding its reach with physical distribution and brand presence to the most frequently visited retail chains across the country, spanning convenience, pharmacy, and general merchandise partners.

“DraftKings’ popularity has grown substantially over the last couple of years and their fanbase is large and passionate,” added Tim Richardson, Senior Vice President at InComm Payments. “This agreement not only offers consumers a great gifting opportunity but also represents a significant brand expansion and enhancement opportunity for DraftKings who, for the first time, will benefit from having its brand present in tens of thousands of InComm Payments’ retail partner locations across the U.S.”

Comment From New York Governor Andrew Cuomo

In a report by Seeking Alpha, New York Governor Andrew Cuomo referenced sports betting as a potential source of revenue for the state. New Jersey is known for its sports betting and it saw a $931 million handle in November alone and $5 billion for 2020:

Disclosure: I have a small DKNG position in my stock portfolio