The riders take part in test races in the Drone Racing League / Allianz World Championship final at Alexandra Palace on June 8, 2017 in London, England.
Adam Gray | Barcroft Media | Getty Images
Sports betting company DraftKings and the Drone Racing League (DRL) announced an exclusive deal on Friday that will allow them to bet on drone racing. It should also help DraftKings cater to a younger audience.
DRL is a first-person racing league where drone pilots run devices through neon-lit courses and compete for the best prizes. DRL did not provide the amount it pays to its competitors, but in 2017 the prize amount reached $ 100,000.
Both parties did not provide the financial terms of the agreement.
People in Colorado, New Hampshire, New Jersey, Tennessee and West Virginia can bet on drone racing from their phones.
Founded in 2015, DRL has increased its interest among younger sports fans over the years. He is scheduled to complete his fifth season and will have a level 14 test on Saturday, followed by the championship test, which has yet to be announced.
The drones used in events are designed and built by DRL. Identical models are made for each race. Each drone is worth about $ 2,000 and can travel up to 90 miles per hour.
“DRL’s exciting and innovative racing events are perfect for the personalized betting offerings we can create,” DraftKings commercial director Ezra Kucharz said in a statement. “Our experience in sports betting combined with DRL’s full stats competition will make this a fun and perfect opportunity to attract your avid audience along with tech-savvy sports fans and adrenaline lovers. “.
DraftKings officials told CNBC that they tested the interest in DRL bets with their free popularity groups that were offered in November and were pleased with the results. The firm had to switch to non-traditional sports offerings when the leagues closed last spring due to the Covid-19.
Alignment with DRL provides access to DraftKings to the professional leagues of Generation Z consumers who still have trouble attracting.
DRL uses the label “technologists” to define the audience, describing the 16-34 age group as predominantly male and “deeply passionate about technology, science and games.” This group is also considered a sports fan who does not follow traditional leagues or sports as closely as millennials.
DRL says this age group resembles its current fan base.
“They’re young; they’re influential, they’re tech experts,” DRL president Rachel Jacobson said in an interview with CNBC on Friday. Jacobson added that the league will unlock the “next generation of betting fans” for DraftKings.
According to data from Wasserman Media Group, DRL fans are three times more likely to place a sports bet and 90% more interested in sports betting compared to the average global sports fan.
The drone league has communications rights agreements with NBC Sports and Sky Sports, owned by parent company CNBC Comcast. It also has a streaming deal with Twitter to host its pre-flight shows. The league said Thursday’s show grew to 193,000 viewers, up from 75,000 viewers during the first show in December.
Jacobson said the company added eight new sponsorships in 2020, including sports drink maker Bodyarmor and a technology deal with T-Mobile, which included building a 5G drone for the league.