Posted on: March 15, 2022, 09:47h.
Last updated on: March 15, 2022, 10:08h.
DraftKings is capitalizing on the NCAA Tournament to introduce a new line of non-fungible tokens (NFTs).
The Boston-based gaming company said today it rolled out the Primetime NFT Series — its first all-in-house NFT collection. Primetime NFTs will be sold on DraftKings Marketplace, which the sportsbook operator launched last year.
Collectors holding all eight editions of the 2022 College Hoops Collection following the championship game will be airdropped a ninth commemorative NFT as a reward for collecting the full set, and this airdrop will grant collectors priority access to the next Primetime NFT Series drop,” according to a statement issued by DraftKings.
The NFT is an emerging digital asset class that’s generating considerable buzz, and one that many interested investors don’t know how to participate in. DraftKings Marketplace also features “curated NFT drops and supports secondary-market transactions.”
March Madness NFTs Have Gaming Angle
DraftKings is leveraging the new NFT launch as an avenue for attracting bettors to its daily fantasy sports (DFS) and online sportsbook offerings.
With each drop in the new NFT collection, buyers receive DK Dollars, which can be used as credits toward DFS, sports betting, and “across all parts of DraftKings’ digital sports entertainment and gaming ecosystem.”
“Eligible holders can use their 2022 College Hoops Collection NFT rewards to place bets and enter pools, brackets, or fantasy contests,” according to the company. “There will also be exclusive one-of-one (1/1) editions of all eight collectibles, which will be auctioned off concurrently using DraftKings Marketplace’s recently launched auction platform.”
Some analysts view NFTs as a small though viable contributor to the broader DraftKings investment thesis. Sports memorabilia is a $10 billion-plus industry, and as more of it goes digital, NFTs could soar in popularity.
Adding to its NFT thesis, DraftKings said last December it reached a deal with the NFL Players Association (NFLPA) to roll out “gamified” NFT collections.
Good Tournament Timing for DraftKings NFT Launch
The impact to its top and bottom lines remains to be seen. But DraftKings’ decision to roll out an NFT series related to the NCAA Tournament could prove fortuitous.
With more states than ever permitting regulated sports wagering, March Madness 2022 is forecast to generate record betting handle. Roughly 45 million American adults plan to wager $3.1 billion on March Madness this year, according to the American Gaming Association (AGA).
Additionally, DraftKings 2022 College Hoops Collection will serve as a springboard for similar NFT launches around upcoming major sporting events. DraftKings didn’t mention specific competitions that could be leveraged for NFT drops.