The drivers participate in the practice rounds at the final of the World Drone Racing League / Allianz Championship at Alexandra Palace on June 8, 2017 in London, England.
Adam Gray | Barcroft Media | Getty Images
Sports betting company DraftKings and the Drone Racing League (DRL) announced on Friday an exclusive agreement that will allow people to bet on drone races. It should also help DraftKings reach a younger audience.
DRL is a first-person racing league in which drone pilots compete with devices with neon-lit courses and compete for the top prize. DRL did not provide the amount it pays to its competitors, but in 2017 the prize amount reached $ 100,000.
The two parties did not provide the financial terms of the transaction.
People in Colorado, New Hampshire, New Jersey, Tennessee and West Virginia can bet on drone races on their phones.
Founded in 2015, DRL has grown over the years an interest among younger sports fans. He is ready to finish the fifth season and will have a “level 14” racing event on Saturday, followed by his championship event, which has not yet been announced.
The drones used in the events are designed and built by DRL. Identical models are built for each race. Each drone is worth about $ 2,000 and can travel up to 90 miles per hour.
“DRL’s thrilling and innovative racing events are perfect for the personalized betting offers we can create,” said DraftKings business director Ezra Kucharz in a statement. “Our experience in sports betting, combined with the DRL competition, will make it a fun and hassle-free opportunity to engage your avid audience, along with sports fans, adrenaline-fueled fans with technology.
DraftKings officials told CNBC that they tested the interest of the DRL bet with its free-to-play popularity bases offered in November and were pleased with the results. The company had to switch to non-traditional sports offers when the leagues ended last spring due to Covid-19.
Alignment with DRL provides DraftKings access to the professional leagues of Generation Z consumers that still have attraction issues.
DRL uses the label “tech-seters” to define the audience, describing the 16-34 age group as predominantly male and “deeply passionate about technology, science and games.” This group is also considered sports fans who do not follow traditional leagues or e-sports as closely as millennials.
DRL says this age group resembles its current fan base.
“They’re young; they’re influential, they’re technical,” DRL President Rachel Jacobson said in an interview with CNBC on Friday. Jacobson added that the league will unlock “the next generation of betting fans” for DraftKings.
DRL fans are three times more likely to make a sports bet and 90% more interested in sports betting compared to average global sports fans, according to Wasserman Media Group.
The Drone League has media rights agreements with NBC Sports and Sky Sports, owned by parent company CNBC Comcast. It also has a streaming contract with Twitter to host its pre-flight broadcasts. The league said its show on Thursday rose to 193,000 viewers, up from 75,000 during its first show in December.
Jacobson said the company added eight new sponsorships in 2020, including sports drink maker Bodyarmor and a technology deal with T-Mobile, including building a 5G drone for the league.