DraftKings Moves Higher After Announcing Michigan Expansion
Shares of online sports betting platform Draftkings Inc (NASDAQ: DKNG) traded higher after announcing an expansion to the state of Michigan.
What Happened To DraftKings
DraftKings said in a press release it entered into a new partnership with Bay Mills Resort & Casino that will give it access to Michigan. As such, DraftKings' mobile sportsbook will become available to sports fans across the state.
DraftKings noted its consumer study pointed to one-third of Michiganders already placed a legal sports bet through an app or traveling to another state. In total, 55% of people it surveyed indicated they never placed an online wager before.
The partnership also allows for sports fans to place bets in person at a retail betting location at Bay Mills Resort.
The partnership will be subject to adoption of applicable regulations and both companies will need to secure the necessary gaming licences and other requisite approvals.
Why It's Important For The Stock
Michigan is the seventh state to allow a DraftKings-branded retail sportsbook.
"Through a commitment to provide customers with a premier sports betting experience, DraftKings is happy to partner with Bay Mills Resort & Casino," said Ezra Kucharz, DraftKings' Chief Business Officer. "The Great Lakes State presents a number of gaming opportunities and we look forward to collaborating with Bay Mills to provide residents with the best-in-class experience DraftKings is known for."
Shares traded up 2% to $41.02 at time of writing.
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