DraftKings Extends Agreement with PGA Tour to Become Official Betting Operator

The entrance from the elevators, designed to resemble a tunnel entering a stadium, is displayed in DraftKings’ new office in Boston on March 25, 2019.

David L. Ryan | The Boston Globe via Getty Images

DraftKings is improving its sports sponsorship portfolio as the leagues continue to resume suspended operations due to Covid-19.

The betting company announced that it has reached an agreement with the PGA Tour that assigns DraftKings as the organization’s “first betting operator”. The deal is an extension of DraftKings’ “content and marketing relationship” with the PGA Tour established last July. That agreement also allows DraftKings to offer fantasy golf content.

The financial terms of the agreement were not made available.

“The PGA Tour could not be more pleased with our increased collaboration with DraftKings,” said Norb Gambuzza, senior vice president of media and gaming for the PGA Tour, in a statement.

“Expanding the relationship to now include sports betting is a natural evolution and one that fully supports and promotes the PGA TOUR’s goals of reaching and attracting new fan segments by introducing them to our players, tournaments, and media platforms.”

PGA TOUR flag during the first round of the Korn Ferry Tour The Bahamas Great Exuma Classic at Sandals Emerald Bay Golf Course on January 12, 2020 in Great Exuma, Bahamas.

Ben Jared | PGA TOUR via Getty Images

As part of the agreement, DraftKings will have the right to use the PGA Tour trademarks and obtain advertising options on the Tour platforms. The company will also create “content and video rights that will allow the DraftKings Sportsbook solution to create pre-game and post-game betting programs, as well as the distribution of highlights to users who have placed bets,” the company said.

“Golf has been an especially important outlet for fan engagement in recent months, and this latest collaboration is a significant next step for both the golf and gaming industries,” said Ezra Kucharz, commercial director for DraftKings, in a statement.

DraftKings, which was made public on Nasdaq in April, also agreed to a betting sponsorship with the National Basketball Association last November. In February, the company announced partnerships with three NBA franchises, including the Philadelphia 76ers and Indiana Pacers.

On Monday, DraftKings shares closed 6.48% after Major League Baseball postponed two games due to the Covid-19 pandemic.

The PGA Tour returned to play on June 11 for the Charles Schwab Challenge in Texas after suspending play due to the pandemic. The Tour will hold its WGC-FedEx St. Jude Invitational at the TPC Southwind Golf Club in Memphis this weekend.