It is fair to say that when it comes to leading in the world of the sportsbook, DraftKings has claimed the top spot across the US, and especially here in New Jersey. There are a number of reasons why the company has been able to claim top spot; for the most part, however, it is their ability to win the hearts and minds of sports gamblers.
Further evidence of this can be seen in the recent announcement that DraftKings will donate $340,000 to three organizations who fight racial and social injustice. This is the figure that the sportsbook made during their DFS contests last Friday and Saturday from the WNBA and the NBA. This move comes at a time of great racial and social unrest. It is not the first time that the sportsbook has used its power for good.
What we cover
The Companies To Which Will DraftKings Will Donate
The three companies who will receive the Draftkings funds are: National Association for the Advancement of Colored People, Vera Institute of Justice and Colors of Change. The NAACP performs great work in the area of racial injustice. The second organization, the Vera Institute of Justice, is a non-profit that seeks to improve social fairness. The third organization, Colors of Change, has been instrumental in seeking to put a stop to deep-seated racism.
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Understanding Its Role In The Current Climate
Following the case of George Floyd and, more recently, that of Jacob Blake, many in the US have risen up to protest against what they see as systemic racism. Some companies have also aligned themselves with this work and DraftKings is certainly one of them. DraftKings released the following statement regarding the potential protest-strike by NBA and WNBA players:
“We fully support the athletes of the NBA, WNBA and other leagues, who have decided to pause and create the space for discussion about the shooting of Jacob Blake, and other tragic incidents which have happened both recently and over many years, highlighting the urgent need for action and reform. The DraftKings community can play an important role in amplifying the message of Black athletes. We stand with the Black community in pursuit of basic human rights and justice.”
DraftKings will donate this money as part of their efforts to support organizations it feels are working to assist those facing injustice on any level.
Charitable Efforts From The Sportsbook
This is not the first time the sportsbook has aligned itself with philanthropic ventures. In late March, the company released a statement revealing that it would donate $500,000 to United Way as that organization sought to combat the pandemic. In the statement, DraftKings announced it would donate a further dollar for each sharing of its donation-announcement tweet, up to another $500,000.
Questions Surrounding The Intention Of The Sportsbook
Although this donation will certainly do some good in the community, some have raised concerns over what is the real intention. DraftKings is brilliant when it comes to media management and some believe this to be a ploy to stay in the conversation, and on the right side of history.
Just last month we covered the story of the sportsbook accepting a $350,000 golf bet. We also reported on the sportsbook’s impressive multi-state NFL contest, the first of its kind. These actions, and the media releases publicizing such actions, are exactly what the sportsbook wants as it seeks to drum up support and marketing.
It is clear that companies like DraftKings require marketing to get ahead of the competition. This is what we discussed here with regards to the company and rival FanDuel pumping huge amounts of cash into sports ads. The point is that marketing, however it comes along, is necessary, and it may be that this donation is essentially an ad buy with a conscience.
Stock Prices Soaring
Regardless of what people think about this donation, it will certainly ensure that the company maintains a positive image. The all important aspect for the sportsbook is the stock price, which we talk about here with regards to whether or not it is a smart investment. The company is certainly a good investment and here are our reasons why that is the case. Beyond everything else, this is a company that understands how to increase reputation and revenue: charitable gestures certainly help with both categories.
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