(Market Watch) – Shares of DraftKings Inc. DKNG, +11.52% shot up 11.0% toward a record high in midday trading Monday, after the digital sports and gaming company announced an agreement to become the co-exclusive provider of fantasy sports content and offerings for Walt Disney Co. DIS, +0.23% sports network subsidiary ESPN.
Under terms of the agreement, DraftKings will be able to integrate its products across ESPN’s digital platforms, and will provide dedicated segments for future EPSN studio shows, beginning with a daily fantasy sports promotion. “Sports betting is quickly becoming endemic to the overall experience of the sports fan,” said ESPN Senior Vice President Mark Walker.
“To us, that means greater opportunities to innovate and deliver the best and most seamless experience for fans, which will ultimately expand ESPN’s brand and audience and increase engagement.” Separately, ESPN also announced an agreement casino operator Caesars Entertainment Inc. CZR, +8.68%, in which ESPN’s digital platforms will be linked to sportsbooks from Caesars’s sports betting partner, William Hill. Caesar’s stock rallied 7.4% toward a near 7-month high.
Year to date, DraftKing’s stock has rocketed 330.0%, while Caesars shares have shed 9.8% and Disney’s stock has lost 8.7%, while the Dow Jones Industrial Average DJIA, +1.47% has slipped 1.7%.