The New England Patriots have struck a partnership deal with Boston-based DraftKings Inc., one of the largest daily fantasy sports companies in the country with more than 2 million registered users.
The deal, where DraftKings will receive advertising space on the Patriots' website and at Gillette Stadium and work with the franchise to create Patriots-themed contests, is the first instance of an NFL franchise endorsing and partnering with a fantasy football site. Terms of the deal were not disclosed.
Gambling has long been looked down upon within professional sports. Fantasy sports, however, do not depend on the actual outcome of a game. Staking money on fantasy sports is not considered betting because most fantasy teams are composed of players from several different teams. Point spreads have nothing to do with the game. As a result, the Unlawful Internet Gaming Enforcement Act has granted a special exemption to fantasy sports.
However, winning money based on individual on-field results has still not been embraced by numerous sports. Past scandals, such as Pete Rose's gambling incident, have scared teams away from taking advantage of the fantasy sports bubble.
DraftKings has been breaking new ground with their professional league partnerships, though. The company signed a sponsorship deal with Major League Baseball last off-season.
"It hasn't been a big issue for us," said DraftKings' Chief Executive Jason Robins. "If you had talked to me a year or two ago when there was a lot less awareness of fantasy sports and DraftKings, those questions would have come up."
DraftKings, founded in 2012, is one of the fastest growing fantasy companies in the country. With cash prizes up to $1 million, it's not exactly a surprise as to why. HNGN is a strong supporter of fantasy sports, and has several writers participating in DraftKings' competitions.
Patriots' Vice President, Murray Kohl, acknowledged the growing influence of fantasy football as a motivating reason for the deal.
"Many of our fans in the stadium are playing fantasy sports, and we want to provide them with the most up-to-date information."
According to the Fantasy Sports Trade Association, more than 41 million people in the United States and Canada play fantasy sports.
