DraftKings is diversifying its business again. Going beyond sports betting and its online casino, the company has essentially created a way to convert deposits on its platform into its own “cryptocurrency.” It will all happen on DraftKings NFT marketplace which is planned for later this summer.
As the concept of NFTs and how to deal with them is probably new to many, the basics in plain English are here. It’s really quite a simple operation once you learn the verbiage and could present some opportunities for DraftKings users.
What is the DraftKings NFT marketplace?
Earlier this month, DraftKings announced a collaboration with Autograph, an NFT collection service. Autograph counts several professional athletes among its founders, such as:
- Tom Brady
- Wayne Gretzky
- Tony Hawk
- Derek Jeter
- Naomi Osaka
- Tiger Woods
Lionsgate Studio, which has produced movie franchises like The Hunger Games and Saw, is also a founding member. With this deal, DraftKings becomes the exclusive seller of sport-related NFTs that Autograph provides.
Matt Kalish, DraftKings co-founder and president, said in a press release about the planned launch of the NFT ecosystem and exchange:
“The NFT boom has reinvented the collectibles industry and driven excitement to early-adopting audiences worldwide—including the DraftKings community. DraftKings Marketplace will sit at the center of this technological and cultural phenomenon, providing our immense existing customer base with an easily accessible experience that rivals all legacy marketplaces. This initial vision in collaboration with Autograph, and its coveted collection of official digital collectibles, is a vital first step as we enter the emergent NFT market. We aim to usher in this new era by introducing millions of collectors to this evolving space while providing beloved content through an intuitive interface built to win over the long term.”
So, what are NFTs? How can DraftKings users in PA use the platform? There are simple answers to those questions and many more.
What does it mean for DraftKings customers in PA?
NFT stands for non-fungible token. That doesn’t mean the token is immune to athlete’s foot and other fungi. Non-fungible in this context means the token cannot be replaced by another identical item. Essentially, it means the token is one-of-a-kind or a 1/1 in collector terms and cannot be divided.
A better, but perhaps more technical description, comes from Georgina Adam of The Art Newspaper.
“NFTs are lines of code minted on a blockchain that represent a digital work ‘living’ on another platform on the internet.”
In this context, there could be a video of Osaka warming up before a match on Autograph. The NFTs on DraftKings Marketplace would give users a way to essentially convert that video into a cryptocurrency. With the authentication from Autograph, buyers can be assured the digital works are genuine.
Are NFT transactions legal in Pennsylvania? Yes.
As NFTs are a recent phenomenon, there is very little regulation around their creation and transmission. The same goes for DraftKings users in New Jersey. So, why are NFTs taking off in popularity among both creators and collectors? There are several reasons.
What is the value of NFTs?
NFTs have some advantages for people like Gretzky and Hawk. They provide ways to further monetize their celebrity. Additionally, they can produce any work the artist has the technology to make and store on the web.
For buyers, NFTs provide a way to diversify investments. With names like these attached to the items the tokens are based on, the value of the tokens seems sure to appreciate over time. If owners can find a buyer, there’s a profit to be had.
How soon should PA DraftKings users expect to see this? The release says exclusive drops from Autograph will begin rolling out on DraftKings NFT Marketplace later this summer. Those initial drops for purchase with US dollars through DraftKings accounts will be titled the “Pre-Season Access.” Buying the first round will give premier access to future releases.
In addition to the tokens, DraftKings Marketplace will also act as a secondary resale platform for digital collectibles. The clear benefit for DraftKings in this deal is that it provides another way to collect customers’ money and thereby boost its stock ($DKNG) price.
Soon, DraftKings customers will have a chance to buy an exclusive, introductory batch of NFTs. In the future, Pennsylvanians might take their online casino winnings and buy NFTs with them instead of cashing out.
Lead image via Dreamstime.