DraftKings has entered the world of NFTs and joined the massive trend that has exploded this year as it announced yesterday that it came to terms with the NFL Players Association to release special gamified Non-Fungible-Token collections and further boost its involvement in the space.
NFT Collections Are Set to Make Their Debut in The Next NFL Season
As sports betting continues to grow in the US thanks to the fact that states are legalizing these activities and people are snatching decent rewards, the industry has become extremely competitive, and hence, lots of money is required to attract new customers. That is why DraftKings’ move into the NFT market could prove to be extremely fruitful.
The partnership between DraftKings and NFLPA will be powered by Polygon, a well-known blockchain protocol that was integrated with the operator earlier this year. As both parties confirmed, NFT collections will be featured on the DraftKings Marketplace in the 2022/2023 NFL season. DraftKings Marketplace’s creation was announced back in July, and the platform will feature secondary-market transactions and curated NFT drops.
As DraftKings suggested, Polygon aims to offer an eco-friendly and scalable blockchain environment that will have low fees and expanded capabilities. Thanks to the new agreement, DraftKings will have licensing rights for the authentic use of the name, likeness, and image of all active NFL players.
NFTs are a Natural Market for DraftKings
As analysts suggest, NFTs are a natural market for the gaming operator, and they have stated that this venture has the potential to be a “revenue diversification tool.” After revealing its NFT marketplace, DraftKings also announced its partnership with the NFT-collecting platform Autograph. This platform was co-founded by one of the biggest legends in the NFL – Tom Brady.
At the moment, Autograph has content accords with Lionsgate and deals with Derek Jeter, Tony Hawk, Tiger Woods, Naomi Osaka, and Wayne Gretzky.
Nigel Greene, the founder, and CEO of deVere Group stated that the NFT market hit new highs in Q2 of 2021, and it had $2.5 billion in sales this year, which is more than 20 times higher than the amount generated in the first six months of 2020, which was $13.7 million.
In the beginning, customers will use the tokens from the DraftKings Marketplace to participate in various games against each other. Buying and selling functionalities will also be featured. After the first few steps, it is likely for more NFT editions and tiers to be added, all of which incorporate various aspects of digital scarcity and utility.
Back in November, the NFL released team-specific NFT collections through collaboration with Ticketmaster. The deal with DraftKings was facilitated with NFLPA’s official media business partner – OneTeam Partners.
The senior vice president of DraftKings Marketplace product operations, Beth Beiriger, stated that there aren’t a lot of organizations that are as equipped as DraftKings to capitalize on the growing connection between sports and NFTs. He went on to say that the gaming operator will continue to adapt and seek innovative solutions with collaborators such as the NFLPA and OneTeam to introduce next-generation products to the masses.