Why Shares of DraftKings Fell and DISH Network Rose Today
Shares of DraftKings (NASDAQ: DKNG) fell 4% on Wednesday after announcing a partnership with DISH Network (NASDAQ: DISH) to incorporate its sports betting and daily fantasy-sports operations into the satellite TV service. DISH shares were up 1.6% on the day.
The direction for DraftKings' stock seems surprising. The partnership with DISH vastly expands DraftKings' exposure to potential sports bettors by putting it in front of DISH's subscribers who have its Hopper DVR set-top box. However, customers can only place bets in states where sport betting is available to DraftKings account holders.
Another limitation is the deal only allows a user to initiate a wager on the TV, not actually place the bet. Once the wager is started, a text message is sent telling the bettor to complete the transaction on the DraftKings app on their mobile device.
Source Fool.com
