DraftKings has had a colossal impact on fantasy sports and sports betting over the last decade. Given
their reach and visibility in the burgeoning US sports betting sector, it’s hard to imagine a market without
them. However, it’s not just in the gambling world where they continue to make headway the whole
foundation of their operation stems from their now globally renowned fantasy football operation.
Rather interestingly, even though many other companies have emerged in the last few years to try and
take some of DraftKings’s market share, they still remain dominant in a number of fantasy leagues, with
tens of millions of customers throughout the US. Today, we’re going to have a look at the factors that
have been the basis of this change and some of the other components that have allowed them to stay
ahead of the chasing pack.
Partnerships With Top Sports Leagues
When DraftKings first launched 12 years ago, their platform dealt solely with fantasy football. Back in
2012, you could count on one hand the number of states that had legalized digital sports betting. While
there were whispers, followed by growing calls, to legalize and legislate the market, it was still a closed
shop.
In any event, DraftKings started offering its fantasy gaming service to a number of American sports
fans—at this stage, it aimed at MLB and NFL markets. The former was the first prominent sporting
organization to sign an endorsement deal with DraftKings or any fantasy sports provider.
In any event, DraftKings started offering its fantasy gaming service to a number of American sports
fans—at this stage, it aimed at MLB and NFL markets. The former was the first prominent sporting
organization to sign an endorsement deal with DraftKings or any fantasy sports provider.
Fast-forward to 2020, and DraftKings has fantasy sports markets for all the top American sports. They’ve
also entered exclusive endorsement deals with other popular fringe sporting organizations, such as the
UFC. They use their vast customer base to advertise their sports betting markets to a target audience
they know enjoys sports and side markets.
DraftKings sportsbook has become one of the most significant names in US sports gambling. Still, the
dual service it offers, alongside its world-class fantasy sports, has meant that both areas of its business
have been incredibly successful almost operating in tandem over the last five years.
Consumer Trust
Such a longstanding presence and a visible connection to the sporting leagues that millions of Americans
know like the back of their hand go an awfully long way in building consumer trust. DraftKings fantasy
games were the gold standard for many years, offering sports fans a way to access fantasy sports and
providing the platform for free, with the potential of cash prizes for those players who could rise to the top of the national leaderboards.
Throughout this period, DraftKings has acquired other big companies within the industry while maintaining its growing customer base and offering a fan experience that other platforms try to replicate.
A lot of consumer trust and growth in reputation has come from word-of-mouth advertising and people
who are used to using DraftKings; its service has flourished. Many people opt for it because of the visibility and trust they have built during their stint in the market, which has lasted for over a decade.
There’s also a subconscious element involved in DraftKings advertising in so many sports. You will know
exactly what we are referring to if you watch the UFC. Thanks to the bumper $350 million deal the two
organizations signed, they’ve continually grown their visibility into other sporting markets. The UFC is the
latest sport where DraftKings is offering fresh fantasy games and the relentless development of their
brand is another component that helps to build consumer trust.
Length of Time in the Market
Although fantasy sports might be all over sporting channels and advertised on social media, in 2012,
there was a smaller scope for fantasy games. DraftKings identified this niche and went with it, spending a
lot of time and research developing a fantasy gaming platform that was pristine and that the competition
would struggle to match.
This continues to be the case, and by getting out of the traps early enough, they grew their customer
base quickly into millions of customers. Similar to what we said about consumer trust, the length of time in the market helps build a trustworthy brand that people begin to recognize and trust, so it’s just as much down to good business practices as innovation. However, by excelling in both areas, DraftKings
continues to dominate fantasy sports and will likely continue to do so for quite some time.
Final Thoughts
Although we touched on a few components today, the main reason DraftKings sportsbook still dominates
daily fantasy football is its partnerships with the top leagues and the length of time it has provided a highly rated service. It takes a long time in any industry to build a loyal customer base consisting of millions of people.
In business, this is not something you can cut corners with, and by establishing themselves early enough,
providing a cost-effective way to play fantasy games, and bolstering this with heightened customer trust
and brand visibility, DraftKings is in a prime position to continue dominating fantasy sports and could also become the leading sportsbook in the US because of this strong market presence.
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